By Mary Samonsen of Multifamily Dive
California Gov. Gavin Newsom signed three bills changing renter protection practices in the state last month.
Under Assembly Bill 2801, landlords are required to take photographs of a unit before move-in, after move-out and before and after any necessary repairs or cleaning, which must be provided to the tenant along with the security deposit disposition form. This bill will take effect on July 1, 2025.
AB 2747 requires landlords to provide tenants with the option to report their on-time rent payments to credit bureaus, effective April 1, 2025.
Senate Bill 611 forbids fees on rents paid by check, fees for posted notices or charging tenants in the military more than the standard security deposit amount, effective July 1, 2025.
AB 2801 initially barred owners from using the security deposit to pay for professional cleaning or for any issues not identified during the initial walkthrough. This was removed almost entirely during the legislative process; the only provision that remains is that owners cannot use the security deposit for carpet cleaning unless it is necessary to restore the original condition of the unit.
The credit reporting bill, AB 2747, only applies to properties with 15 or more units. Landlords will be able to recoup the costs associated with complying with this bill by charging tenants a fee to cover the costs of the reporting, according to a statement provided to Multifamily Dive by the California Apartment Association.
“This bill will not only help tenants, but it will help future landlords know that a tenant has historically paid their rent on time and will likely continue to do so,” said Debra Carlton, executive vice president of state government affairs for CAA, in the statement.
SB 611 originally required landlords to disclose all optional fees for an apartment in its advertisements. This was removed in a later amendment, leaving the remaining provisions on fees and security deposits for military tenants. The disclosure requirement would have placed a significant burden on landlords, according to the CAA.
The three bills are part of a larger package signed on Sept. 19, with legislation addressing homelessness, housing production, fee transparency and tribal housing.
Landlord-tenant bills that did not pass in the most recent session include:
AB 2187, which would have established an Office of Tenants’ Rights and Protections.
AB 2216, which would have required property owners to allow common pets on multifamily properties, and not allowed properties to charge pet rent or a security deposit. Later amendments created exceptions for buildings with less than 16 units or households with more than one pet.
AB 2384, which would have required emergency phones to be installed near pool decks.
AB 2785, which would have required properties to pay renters interest accrued by their security deposits and set requirements for screening fee limits.
SB 1154, which would have outlawed revenue management algorithms.
One major question that remains is the fate of Proposition 33, which would expand the authority of local governments to enact rent control if passed. Voters will decide on this ballot measure on Nov. 5.
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