Big changes are coming for property investors in 2025. From new rules for application fees to stricter security deposit requirements, having a property management company that stays up to date is more important than ever. Here’s a quick breakdown of what you need to know, including updates from AB 2493, SB 611, SB 1051, AB 2347,, and AB 2801, so you can be ready for the new year. *As always, this is not legal advice, we are not a legal firm.*

Investor takeaway: 2025 brings more structure, documentation, and transparency requirements. Strong systems and consistent processes matter.

Application Screening Fees (AB 2493)

Starting January 1, 2025, new rules under AB 2493 will change how landlords and property managers handle application screening fees. Here’s what you need to know:

1. First-Come, First-Serve:

If an application fee is charged, then applications must be reviewed in the order they are received, and the first applicant who meets the screening criteria must be selected.

2. Fee Conditions:

• You can only charge an application screening fee if you provide a valid screening process in writing at the time of providing the prospect an application.
• If you know there are no available units or that none will be available within a reasonable time, you cannot charge a fee unless the applicant agrees in writing.

3. Credit Report Copies:

• You must provide applicants with a copy of their consumer credit report within 7 days of receiving it. The applicant no longer needs to request it.

4. Reusable Screening Reports:

• If you choose to accept reusable tenant screening reports, you cannot charge a fee to access these reports or any additional screening fees.

Fee Transparency and Fairness (SB 611)

SB 611, effective January 1, 2025, increases transparency for rental costs and fees:

1. No Fees for Notices or Check Payments

• Property owners and management companies cannot charge tenants for posting notices or paying rent by check.

2. Disclosure Requirements

• All fees (e.g., security deposits, application fees, service fees) must be disclosed in rental ads.

3. Utility Transparency

• Landlords must disclose the maximum utility costs paid by the previous tenant and provide the last two utility bills, if known.

4. Optional Fees

• Optional fees (e.g., parking or pet fees) must be clearly itemized.

5. Utility Cost Allocation

• Landlords cannot change how utilities are billed or increase charges during the lease.

For the full legislative text, visit the California Legislature’s website .

Tenant Protection for Violence/Abuse Survivors (SB 1051)

Starting January 1, 2025, landlords must change the locks within 24 hours of a tenant’s written request if:

• A court order or police report shows a restrained person (not a co-tenant) must stay away.

If the landlord fails, the tenant may change the locks and be reimbursed within 21 days. The tenant must provide a key to the landlord.

Eviction Notice Response Time (AB 2347)

Beginning January 1, 2025, the tenant response time to an unlawful detainer (eviction lawsuit) increases from 5 days to 10 days.

Security Deposit Returns (AB 2801)

Starting April 1, 2025, changes under AB 2801 require landlords to provide detailed documentation when withholding any portion of a tenant’s security deposit. Here’s what you need to know:

1. Photo Documentation:

Landlords must provide photos to the tenant showing the condition of the rental unit before and after the move-out. Photos must also be taken after any necessary repairs have been completed if deductions are made from the deposit.

2. New Lease Requirements:

• For leases with move-outs after January 1, 2025, photos taken after move-out and after repair work must be provided to the tenant.
• For new leases starting on or after July 1, 2025, move-in photos must also be included.