We reviewed the changes in property management laws, several of which take effect or reach critical compliance deadlines in California starting April 2025. These impact property managers and property providers, and it is essential to understand these changes to ensure compliance and maintain effective operations.

None of the following is legal advice - please follow the provided links and consult your legal counsel to understand these changes.

1. Mandatory Offer of Positive Rental Payment Reporting (AB 2747)

Effective January 1, 2025, with key requirements beginning April 1, 2025, covered landlords must offer tenants the option to have their positive rental payment information reported to at least one qualifying consumer reporting agency.

• Existing Leases: For leases outstanding as of January 1, 2025, the offer must be made no later than April 1, 2025, and at least once annually thereafter.
• New Leases: For leases entered into on or after April 1, 2025, the offer must be made at lease signing and at least once annually thereafter. EJ Properties includes this in all new leases.
• Property providers may charge the lesser of $10 per month or the landlord's actual cost to provide the service.
• Exemptions: Landlords of residential rental buildings with 15 or fewer dwelling units are exempt, unless the landlord owns multiple properties and is a real estate investment trust, a corporation, or a specific limited liability company structure.

Read CA AB 2747

2. Prohibition of Certain Fees (SB 611)

Senate Bill 611 introduces new restrictions on specific fees for 2025:

• Notice Delivery Fees: Property providers cannot charge fees for delivering notices related to past-due rent, evictions, or lease violations, including 3-Day Pay or Quit Notices.
• Payment Processing Fees: Landlords are required to accept rent paid in more forms, and charging tenants fees for paying rent by check is prohibited.

Read CA SB 611

3. Tenant Screening Fee Regulations (AB 2493)

Effective January 1, 2025, AB 2493 introduces significant regulations regarding tenant screening fees, aiming to protect applicants from excessive charges.

• Fee Limitations: A landlord can charge a screening fee only if they offer a formal screening process, and cannot charge when they know no unit is available.
• Cost Cap: The screening fee cannot exceed the actual out-of-pocket cost incurred by the property provider or $10, whichever is lower.
• Credit Report Requirements: Any applicant who pays a screening fee must receive a copy of their consumer credit report within 7 days of the landlord receiving it.
• Refund Obligation: If the property provider does not perform certain screening elements, they must refund the unused portion of the screening fee.

Read CA AB 2493

4. Enhanced Security Deposit Documentation (AB 2801)

Assembly Bill 2801 strengthens security deposit protections and requires detailed photo documentation at key stages of tenancy. These processes are already a core part of operations at EJ Properties.

• Photographic Documentation: Property providers must take photos at three key stages:
  1. Before Move-In: Effective July 1, 2025, landlords must take photographs before or at the inception of the tenancy.
  2. During Tenancy (Post-Repair): Effective April 1, 2025, if a repair results in a deduction, landlords must take photos before and after the work is completed.
  3. After Move-Out: Effective April 1, 2025, photos must be taken within a reasonable time after possession is returned.
• Itemized Statement: If making a deduction, the landlord must provide an itemized statement showing the specific issue, the cost of repair, and the related before and after photographs.
• Preexisting Conditions: Landlords cannot charge for preexisting damage, and ordinary wear and tear is not a valid reason for a deduction.

Read CA AB 2801

5. Fair Housing Protections for Rental Applications (SB 267)

• Credit History Alternatives: California law prohibits landlords from rejecting Section 8 or housing voucher applicants based solely on their credit history.
• Equal Opportunity: Landlords must give applicants the opportunity to provide verifiable alternative evidence showing they earn enough to pay their share of the rent.

Read CA SB 267

Staying informed about these legislative changes is important for California property managers and property providers. EJ Properties ensures ongoing compliance and helps property owners remain protected and informed.

Frequently Asked Questions

What is AB 2747 regarding rental payment reporting?

Effective in 2025, AB 2747 requires covered landlords to offer tenants the option to have their positive rental payments reported to a qualifying consumer reporting agency. Some smaller landlords may be exempt depending on portfolio size and corporate structure.

What fees are prohibited under California SB 611?

SB 611 prohibits property providers from charging fees for delivering eviction or past-due rent notices, and forbids charging tenants fees for paying rent by check.

How does AB 2801 change security deposit documentation?

AB 2801 requires landlords to take detailed photographic documentation of a property before move-in, after move-out, and before and after any repairs that result in a security deposit deduction. An itemized statement with these photos must be provided if deductions are made.

What limits does AB 2493 place on tenant screening fees?

AB 2493 caps screening fees at the actual out-of-pocket cost incurred by the property provider or $10, whichever is lower. Landlords must provide applicants with a copy of the credit report within 7 days and refund any unused portion of the fee.