AB 2493 – Application Screening Fees
What’s changing?
Starting January 1, 2025, this bill updates the guidelines regarding application screening fees for applying for a rental property:
- Landlords must provide a receipt for application screening fees collected.
- These fees cannot exceed the actual costs of processing the application (e.g., credit checks or background screenings).
- A breakdown of the fee components must be provided upon request by the applicant.
Why it’s significant: Transparency is now a legal requirement. Landlords must clearly document and justify these fees for the rental property application to remain compliant.
AB 2801 – Security Deposits
What’s changing?
AB 2801 introduces new rules governing the collection and return of security deposits for rental units:
- Landlords can only collect up to one month’s rent as a security deposit for unfurnished units or unfurnished rentals.
- Prompt return of security deposits is required – California landlords must process the security deposit refunds within 21 days (14 days for good faith estimates)
Why it’s significant: Transparency is now a legal requirement. Landlords must clearly document and justify these fees for the rental property application to remain compliant.
SB 611 – Fees and Security
What’s changing?
This Senate Bill prohibits housing providers from charging a fee for serving or delivering termination notices such as pay or quit or no-fault notice of termination. Also, cannot charge for paying rent or security deposit by check.
On or after April 1, 2025, if a landlord or its agent charges a service member who rents residential property a higher than standard or advertised security due to the credit history, credit score, housing history, or other factor related to the tenant, the landlord shall provide the tenant with a written statement, on or before the date the lease is signed, of the amount of the higher security and an explanation why the higher security amount is being charged.
The additional amount of security shall be returned to the tenant after no more than six months of residency if the tenant is not in arrears for any rent due during that period. The date for return of the additional amount of security shall be included in the lease agreement.
Why it’s significant: Landlords will need to re-evaluate their fee structures to align with this legislation.
AB 2747 – Mandatory Offer of Credit Reporting
What’s changing?
Under this new legislation, landlords are required to offer tenants credit reporting options for rent payments for the rental property:
- Tenants can request reporting of their rent payments to credit bureaus at no additional cost.
- Landlords must disclose the availability of this option in their lease agreements.
Why it’s significant: This new law allows tenants to build their credit while paying rent, adding an attractive feature that may appeal to potential renters.
SB 1051 – Changing Locks for Domestic Violence Situations
What’s changing?
To provide additional protections for survivors of domestic violence, SB 1051 amends previous regulations on changing locks:
- Tenants facing domestic violence can request a lock change without penalty, provided they submit a statement or restraining order.
- Landlords must comply with the request within 2 business days.
Why it’s significant: This ensures tenant safety while mandating landlords to act quickly and responsibly in domestic violence situations.
AB 2347 – Timing for Unlawful Detainers
What’s changing?
AB 2347 modifies the timeline for initiating eviction proceedings in compliance with state and local tenant protection laws:
- Landlords must give tenants a 10-business day “cure” period to address late rent or other lease violations before filing an unlawful detainer.
- Expedited processing for certain cases is allowed for significant lease violations affecting safety or health.
Why it’s significant: These changes give tenants more time to resolve lease violations while accelerating urgent cases for landlords.
Final Thoughts
Staying compliant with these new California laws will be key for 2025. From updated security deposit rules to enhanced tenant protections, California landlords must adapt their practices to align with these changes. If a landlord fails to update their rental property procedures to the new California rental laws, there could be costly implications.
Need help navigating these new requirements? At Crestmont, we specialize in taking the legal risk and liability off your hands by staying informed about the ever-changing landlord tenant laws. Contact us for expert guidance and proactive solutions that can help you and your rental property stay protected.
The Crestmont Team
Disclaimer: Crestmont Property Management is not a legal firm and does not provide legal advice. For detailed questions or concerns regarding California rental laws, we recommend consulting a qualified California real estate attorney to ensure full compliance with the applicable regulations. Crestmont shall not be liable for any errors or inaccuracies or for any actions taken in reliance thereon.
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