California's New Rental Property Laws for 2025
As we transition back into our daily routines after the holidays, rental property owners in California should be aware of several new laws taking effect in 2025. These legislative updates are designed to enhance tenant protections, improve housing conditions, and streamline property management. Below is an overview of the key changes:
AB 2747: Tenant Rent Payment Credit Reporting in California
Effective April 1, 2025, AB 2747 requires landlords of buildings with 15 or more units to offer tenants the option to report rent payments to credit bureaus. This regulation aims to help tenants improve their credit scores through timely rent payments. Landlords must notify tenants of this option at lease signing and at least once annually, maintain accurate payment records, and comply with California’s reporting guidelines. New leases after April 1, 2025, must include this offer, while existing tenants must be notified by the same date.
Exemptions apply to landlords with 15 or fewer units unless they own multiple properties or operate as a corporation or similar entity. Assisted housing developments are also exempt due to separate regulations. AB 2747 emphasizes tenant communication and record accuracy, ensuring compliance while supporting tenants' financial growth.
AB 2684: Addressing Extreme Heat in City and County Planning
Effective January 1, 2025, AB 2684 requires cities and counties in California to update their safety elements to address extreme heat hazards during their next general plan or hazard mitigation plan revision after January 1, 2028. This law builds on existing planning requirements by mandating the inclusion of strategies to mitigate extreme heat risks, such as using data from extreme heat action plans or the State Hazard Mitigation Plan. Updates must identify new information about extreme heat hazards, similar to how current revisions incorporate flood and fire risks and climate adaptation measures.
This legislation emphasizes the growing impact of extreme heat and ensures statewide compliance, including by charter cities. To support these updates, the state will reimburse local governments for any mandated costs. AB 2684 underscores California's commitment to climate resilience and protecting communities from emerging environmental threats.
SB 900: HOA and Utility Maintenance (Effective January 1, 2025)
Senate Bill 900 (SB 900), effective January 1, 2025, amends California Civil Code Section 4775 to mandate that homeowners' associations (HOAs) are responsible for repairing and replacing interrupted gas, heat, water, or electrical services that originate in common areas, even if the issue extends into individual units. HOAs must initiate these repairs within 14 days of the service interruption. If reserve funds are insufficient, the association is authorized to secure loans and levy emergency assessments without requiring a member vote to expedite the restoration process.
Additionally, SB 900 introduces flexibility in decision-making by allowing HOA boards to achieve a reduced quorum if a full quorum cannot be met within the 14-day period, ensuring timely action. Board members are also permitted to vote electronically to authorize necessary repairs. Furthermore, the bill expands the definition of "major components" in reserve studies to include gas, water, and electrical services, ensuring these critical utilities are adequately planned for in maintenance and financial strategies.
SB 1037: Increased Penalties for Housing Law Violations (Effective January 1, 2025)
Senate Bill 1037 (SB 1037), effective January 1, 2025, introduces increased penalties for local governments in California that fail to comply with state housing laws. Authored by Senator Scott Wiener and signed into law by Governor Gavin Newsom, this legislation empowers the state's Attorney General to seek civil penalties against municipalities that violate housing element requirements or delay housing developments.
Under SB 1037, local governments found in violation may face fines ranging from $10,000 to $50,000 per month, depending on the severity and duration of the non-compliance. These penalties are designed to encourage faster project approvals and construction, addressing California's housing crisis by ensuring municipalities adhere to state-mandated housing plans and facilitate the development of affordable housing.
AB 2304: Tenant Protection Bill (Effective January 1, 2025)
Previously, records of unlawful detainer actions (evictions) involving mobile home park tenancies were exempt from certain confidentiality provisions, making them accessible to the public. AB 2304 removes this exemption, ensuring that eviction records for mobilehome tenants are treated the same as those for other residential tenants. This change limits public access to these records, thereby protecting tenants' privacy and preventing potential discrimination based on eviction history.
AB 2347: Extended Time to Respond to Unlawful Detainer (Effective January 1, 2025)
AB 2347 extends the response time and introduces other procedural changes to eviction cases. The bill prohibits court clerks from entering a default judgment against a tenant less than three court days after the landlord files proof of service.
The new law also addresses the scheduling of hearings when a tenant files a demurrer or a motion to strike an eviction complaint. Under AB 2347, such hearings must be scheduled within 5 to 7 court days. Furthermore, the bill allows for oral responses in certain situations, potentially expediting the process.
Proponents of the bill argue that these changes are crucial for preserving tenants' due process rights, especially given the severe consequences of eviction. The extended timelines and additional safeguards are intended to prevent unscrupulous practices and ensure that tenants have a fair chance to present their cases.
Critics have expressed concerns that the new procedures may delay the eviction process for landlords dealing with problematic tenants.
AB 2493: Tenancy Application Screening Fee (Effective January 1, 2025)
Under California law, landlords or their agents are permitted to charge an application screening fee to cover the costs of obtaining information about a rental applicant. However, they are prohibited from charging this fee if they know or should know that no rental unit is available at that time or will be available within a reasonable period, unless the applicant agrees in writing. Additionally, landlords are required to provide a copy of the consumer credit report to the applicant upon request.
The proposed bill seeks to modify these provisions by allowing landlords or their agents to charge an application screening fee only if they offer a specified application screening process at the time the fee is collected. It maintains the prohibition against charging the fee when no rental unit is available, unless the applicant agrees in writing. Furthermore, the bill removes the requirement for the applicant to request a copy of the consumer credit report; instead, the landlord or their agent would be required to provide a copy within seven days of receiving the report. The bill also clarifies that it does not prevent landlords from accepting reusable tenant screening reports.
AB 2081: Tenant Security Deposits (Effective April 1, 2025)
AB 2081 introduces new requirements for landlords regarding tenant security deposits, effective April 1, 2025. For tenancies beginning on or after July 1, 2025, landlords are required to provide pre-move-in, pre-repair, and post-repair photos along with the security deposit disposition form. Additionally, starting April 1, 2025, landlords can only deduct costs for professional cleaning from the security deposit if it is necessary to restore the unit to its original condition. These changes aim to ensure transparency and fairness in how security deposits are handled.
SB 611: Limiting Fees and Protecting Service Members (Effective July 1, 2025)
Senate Bill 611 (SB 611), effective July 1, 2025, implements important tenant protections in California. The bill prohibits landlords from charging fees for delivering tenancy-related notices or for rent payments made by check, ensuring greater transparency and fairness. Additionally, SB 611 enhances security deposit protections for military service members, requiring landlords to provide a written explanation for any excess security deposit charged and mandating the return of that deposit within six months of residency, provided the tenant remains current on rent payments. These changes aim to safeguard tenants' rights and streamline the rental process.
In Summary
In 2025, new rental property laws in California present both challenges and opportunities for landlords. Key changes include AB 2747, which allows tenants in larger buildings to report rent payments to credit bureaus, and AB 2684, requiring cities to address extreme heat in planning. SB 900 holds HOAs accountable for utility repairs within 14 days, and SB 1037 increases penalties for local governments not complying with housing laws. AB 2304 and AB 2347 focus on tenant protections by limiting eviction record access and improving eviction procedures. Additionally, AB 2493 and AB 2081 refine application screening fees and security deposit handling.
For assistance with these updates, contact us at pm@earthhh.com.
Disclaimer: This blog and any information contained herein are provided for informational purposes only and do not constitute legal advice. The author of this blog is not an attorney, and the information presented should not be considered as a substitute for professional legal advice.
