June 2025 Blog
Dear Homeowners,
As your trusted property management partner, we aim to keep you updated on key legislative, regulatory, and local developments affecting rental housing. The past 30 days have brought notable updates—and the next 30 days will see critical implementation steps you should be aware of. Below is a summary of important changes that may impact your property, leasing policies, or future planning.
🏛️ Legislative & Policy Updates
➤ SB 79 – Transit-Oriented Housing Bill
A major state proposal would allow denser, taller housing within a half-mile of major transit hubs—without CEQA delays. The bill also includes affordability requirements and transit-oriented project incentives.
➤ AB 1248 – Proposed Ban on Most Rental Fees (2026)
This bill proposes banning nearly all fees beyond rent, security deposits, and utility pass-throughs for tenancies beginning January 1, 2026. It targets excessive or “junk” fees and is still making its way through the legislature.
📝 New Rental Laws Taking Effect in 2025
➤ AB 2801 – Security Deposit Photo Requirements
Starting April 1, 2025, landlords must photograph the rental unit:
- At move-in
- After tenant possession ends (before repairs/cleaning)
- After repairs/cleaning is completed
These must be shared with the tenant. For leases starting after July 1, 2025, photos must be taken at move-in.
➤ AB 2747 – Rental Payment Credit Reporting
Landlords must begin offering tenants the option to report on-time rent payments to credit agencies.
- Applies to all leases starting Jan 1, 2025
- Existing tenants must be offered this option by April 1, 2025, and annually thereafter
➤ AB 2493 – Application Fee Transparency
As of January 1, 2025, application screening criteria must be provided upfront. Application fees may only be charged if landlords approve applications in the order received.
➤ AB 2579 – Balcony Inspection Deadline Extended
The deadline for exterior elevated element inspections has been extended from Jan 1, 2025, to Jan 1, 2026 for multifamily buildings with 3+ units.
🧾 Eviction & Tenant Protection Changes
➤ Longer Time for Tenants to Respond to Evictions
Effective in 2025, renters now have 10 days (up from 5) to respond to unlawful detainer actions. This change extends the eviction timeline and may require landlords to build in additional time for turnover planning.
🏘️ Zoning & Construction Updates
➤ SB 9 – Owner-Occupancy Requirement Removed for ADUs
This bill would allow the construction of ADUs without requiring the owner to live on-site. It is aimed at increasing the housing supply and may make investment property development more flexible.
🌡️ Health, Safety & Comfort
➤ Proposed Cooling Standards for Rental Units
A proposal under review would require residential units to maintain indoor temperatures below 82°F to protect tenants from extreme heat. If adopted, this would be the most stringent cooling requirement in the nation.
🏢 Statewide Administration Changes
➤ Governor’s Plan for Housing & Homelessness Reform
Governor Newsom has proposed a new cabinet-level agency—The California Housing and Homelessness Agency (CHHA)—to streamline housing, homelessness, and development programs statewide. This restructuring is aimed at reducing bureaucracy and improving outcomes.
📌 What We Are Doing About It
- Taking “before” photos of your rental units in anticipation of AB 2801.
- Review tenant screening procedures to comply with AB 2493.
- We now offer rent reporting options under AB 2747.
- We’ve planned ahead for longer eviction timelines.
- Reach out if you’re interested in ADU development options.
We’ll continue monitoring these developments and adjusting our processes to keep your property compliant, protected, and profitable.