California residential Landlords are faced with a sea of new laws:
Security Deposits (AB 2801)
Beginning April 1, 2025, landlords will be required to take photos of the rental unit immediately after receiving possession back from a tenant and before any repairs or cleaning take place and immediately after repairs or cleaning take place. Some key factors include:
Landlords will need to send photographs along with the standard itemized list of what the deposit was used for and a written explanation of the cost of repairs/cleaning.
Landlords are now not permitted to charge for professional carpet cleaning or professional cleaning to return the unit to the same condition it was in prior to being rented out exclusive of ordinary wear and tear.
Eviction Response Time (AB 2347)
This law now gives tenants in an unlawful detainer action (eviction) 10 business days to respond to a complaint compared to the previous 5 business days given to tenants. Lawmakers justified this bill by arguing that 5 business days is hardly enough time to review the complaint and obtain counsel if necessary. This bill also shortened the time for hearings on specific motions including demurrers which have historically been used from time to time to delay the case for up to an additional 35 days. Now, responsive pleadings to those motions are due within 5 to 7 days depending on service and type of motion.
Balcony Inspections (AB 2579)
Previously, SB 721 required balconies and decks to be inspected for buildings with 3 or more multifamily units. The inspection must be done by a licensed architect or an individual certified as a building inspector or building official. AB 2579 provided a deadline of January 1, 2025, to complete the inspections. AB 2579 extends that deadline through January 1, 2026. Nonetheless, landlords that fall within the units covered under these bills should proactively complete the inspections to avoid issues and missing the deadline.
Changes to Parking Fee (AB 2898)
This law requires landlords to ‘unbundle’ parking from the lease. If the landlord wants to charge for parking, which is becoming more and more common, they must now do so via a separate agreement from the lease. The reasoning by lawmakers was to prevent tenants from being evicted for nonpayment of the parking fee and/or violation of the parking conditions.
Changing of Locks (SB 1051)
This law would require landlords to pay for the changing of the unit’s locks when a tenant requests them due to being a victim of domestic violence. Some key factors include:
- Tenant must provide proof of the claim to landlord to initiate this requirement.
- Landlord only has 24 hours to comply with the request. If not, the tenant can do it themselves and notify the landlord within 24 hours that the locks were changed as well as provide a new key to landlord.
- The landlord then has 21 days to reimburse the tenant for the expense of changing the lock(s).
- Landlords cannot remove tenants or otherwise discriminate against them based on the tenant’s exercise of their rights under this bill.
Fees and Security (SB 611)
This law would prevent landlords from charging tenants a fee for payment of rent/security deposit by check. It also prevents landlords from charging a fee for service of any notice including notices to pay or enter.
Mandatory Offer of Credit Reporting (AB 2747)
This law would require landlords with 15 or more rental units to offer positive rental payment reporting to at least 1 credit bureau on behalf of the tenant(s). Some key factors include:
- The most a landlord can charge is the lesser of $10 or the actual cost of the service.
- Landlords must still offer positive rental history reporting with all leases beginning on April 1, 2025, and must provide notice to tenants of leases existing as of January 1, 2025, of the same offer.
Tenant Screening (AB 2493)
This law permits landlords to charge an application fee only if they do one of the following two things:
Refund all applicants not selected, regardless of reason, if their application is treated like a ‘job interview’ approach. This refers to when landlords treat the application process like an interview and give the unit to the ‘best’ applicant. This approach can cause concerns as it relates to fair housing laws, so landlords should tread lightly or seek legal advice.
‘First Come First Serve’- process applications on first come, first qualified, first granted approach. The landlord must present their requirements along with the application form. Once a tenant is selected, any remaining applicants must either be refunded within 7 days or have their application transferred to another property that the landlord has available for rent. In this instance, the landlord can retain the application fee.
These new laws can be intimidating for most landlords, especially with the penalties for lack of compliance. If you need assistance or have questions about the foregoing, please reach out to your employment legal counsel.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
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