November 2024 Blog

This month, we introduce an outline of the news laws going into effect in 2025, and looming insurance crisis in California, and ballot measures that passed effective rental owners positively.

As we approach 2025, several new laws and recent ballot measures in California will impact rental property management. Here’s an overview to keep you informed:

Upcoming Laws Effective in 2025

From CAA:

Tenant Screening
A new law under AB 2493 requires that landlords may only charge a screening fee if they process applications in the order they are received and approve the first applicant who meets the criteria. Additionally, landlords must now provide screening criteria in writing along with the application.

Security Deposits
AB 2801 mandates that landlords photograph the unit at specific times: immediately before tenancy begins, after the unit is vacated (before repairs/cleaning), and post-repair. Photos must be shared with departing tenants. From April 1, 2025, this applies when possession is returned; for leases starting July 1, 2025, it applies at tenancy start.

Rent Reporting for Market Rate Housing
AB 2747 requires landlords to offer tenants the option of reporting positive rental payment information to credit bureaus. For leases starting April 1, 2025, this offer must be included in the lease and provided annually thereafter. For existing leases as of January 1, 2025, the offer must be made by April 1, 2025, and annually thereafter. Owners can charge up to $10 monthly to cover reporting costs.

Rent Reporting for Affordable Housing
SB 924 continues the requirement for assisted housing landlords to offer rent payment reporting to credit bureaus, with fees capped at $10 monthly.

Fees and Notices
Under SB 611, landlords cannot charge fees for rent checks, security deposit payments, or notices. For military members charged above-standard security deposits, leases must state the increased amount and reasons, with excess deposits returned within six months if no rent is overdue.

Domestic Violence Protections
SB 1051 requires landlords to change locks within 24 hours of notice that a tenant or household member is a victim of abuse, or reimburse tenants within 21 days if they change the locks themselves. The tenant must provide a key to the landlord within 24 hours.

Eviction Process Updates
AB 2347 extends the time for tenants to respond to an unlawful detainer from 5 to 10 days, while reducing delays in eviction proceedings.

Balcony Inspection Deadline Extension
AB 2579 extends the deadline for balcony and exterior inspections for buildings with three or more units by one year, now due by January 1, 2026.

For a full list of bills signed by Gov. Gavin Newsom, please refer to the CAA’s Legislative Chart. Stay tuned for upcoming CAA webinars offering deeper dives into these new laws.

Recent Ballot Measures Affecting Rental Housing

• Proposition 33 (Rent Control Expansion): This measure aimed to repeal the Costa-Hawkins Rental Housing Act, allowing local governments to implement broader rent control policies. However, voters rejected Proposition 33 in the recent election, maintaining the current limitations on local rent control measures.