California Rental Laws 2025: Every New Change Landlords & Tenants Need to Know

This year has been a significant one for Californians navigating the rental market. New laws taking effect in 2025 introduce clearer documentation requirements, expanded tenant protections, and updated rules that promote greater transparency and accountability between landlords and renters. No matter which side you’re on, most people have encountered situations where rental laws felt unclear or debated—especially around evictions, security deposits, or application fees. Legislators introduced dozens of proposals this year, making 2025 one of the busiest years for housing-related reform. As the year comes to an end, it’s important to understand which changes were finalized and what is officially in effect. Whether you’re a property owner aiming to stay compliant or a renter wanting clarity on your rights, understanding these updates is essential. In this blog, we break down each new law in a simple, easy-to-read format.

1. Mandatory Photo Documentation for Security Deposits (AB 2801)
Effective: April 1, 2025 (move-out photos)
Effective: July 1, 2025 (move-in photos for new leases)

• What the law requires:

  • Landlords must take photos of the unit before tenants move in.
    • At move-out, landlords must take photos before any cleaning or repairs that will be charged to the security deposit.
    • Photos must be provided to tenants along with the itemized deduction list and receipts.

    • Impact for Tenants:
      • Stronger protection against unfair deposit deductions.
      • Clear visual proof of the unit’s condition before and after tenancy.
      • Easier to dispute incorrect charges.

    • Impact for Landlords:
      • Reduces legal disputes and protects the landlord against false claims.
      • Ensures consistent documentation of unit condition.
      • Requires workflow updates for move-in and move-out procedures.

2. Rent-Payment Credit Reporting Must Be Offered (AB 2747)
Effective: April 1, 2025

• What the law requires:

  • Landlords must offer tenants the option to have on-time rent payments reported to credit bureaus.
    • Tenants can opt in or opt out.
    • Some small landlords may qualify for exemptions.

    • Impact for Tenants:
      • Opportunity to build credit by paying rent on time.
      • Helps with future loan approvals and lower interest rates.
      • Increased financial empowerment and visibility.

    • Impact for Landlords:
      • Becomes a value-add when marketing available units.
      • Encourages tenants to pay on time.
      • Requires integrating a rent-reporting system and updating lease language.

3. Application Screening Fee Refund Requirements (AB 2493)
Effective: January 1, 2025

• What the law requires:

  • Landlords cannot charge application fees unless the unit is truly available.
    • If the applicant is not selected, fees must be refunded within: 7 days after selecting a tenant, or 30 days after the application was submitted, whichever is sooner.

    • Impact for Tenants:
      • Eliminates fees for units that were never actually available.
      • Offers more protection and fairness during the screening process.
      • Reduces repeated out-of-pocket costs.

    • Impact for Landlords:
      • Requires accurate vacancy tracking before collecting any fees.
      • Enforces quick refund timelines.
      • Requires updated processes or property-management software.
      
      

4. Eviction Response Time Extended from 5 Days to 10 Days (AB 2347)
Effective: January 1, 2025

• What the law requires:

  • Tenants now have 10 days (instead of 5) to respond after being served eviction paperwork.
    • Timelines for legal filings are now longer.

    • Impact for Tenants:
      • More time to secure legal assistance.
      • More time to negotiate or resolve issues.
      • Reduces the chance of default judgments.

    • Impact for Landlords:
      • Lengthens the eviction process.
      • Requires updated internal workflows.
      • Must provide owners and managers with realistic time expectations.

5. Electronic Delivery of Security-Deposit Statements
Effective: 2025

• What the law clarifies:

  • Landlords may provide security-deposit refunds and itemized statements electronically.
    • Rules involving roommates have been clarified regarding move-outs.

    • Impact for Tenants:
      • Faster receipt of refund and documentation.
      • Less chance of delays due to mail issues.
      • Increased clarity when multiple roommates are involved.

    • Impact for Landlords:
      • Simplifies the deposit-return process.
      • Reduces administrative workload.
      • Enables fully digital documentation storage.

California’s 2025 rental laws prioritize transparency, fairness, and documentation for both sides of the rental relationship. For tenants, these changes offer stronger protection, clearer communication, and more opportunities to build financial stability. For landlords, they offer cleaner processes, fewer disputes, and better alignment with modern compliance standards. Whether you're renting out property or signing a new lease, understanding these updates is key to creating a smoother, more predictable experience in 2025 and beyond.

Are you a landlord looking for tenant placement support? We help you find qualified tenants while ensuring a compliant, streamlined experience from start to finish. Contact us today for a free consultation.

• Keara Peeples, with eXp Realty #02243103