California’s rental landscape is changing in 2025. Landlords, property owners, and real estate investors across Contra Costa County, Alameda County, and the East Bay need to stay informed to remain compliant while maximizing rental ROI. This guide covers key new laws affecting residential and select commercial rental properties, including inspection requirements, security deposits, credit reporting, domestic violence protections, and discrimination protections.
AB 2493 – Application Screening Fees
Previously, landlords could recover costs associated with processing applications. AB 2493 introduces new restrictions:
No fees if no unit is available or expected to become available within a reasonable period.
Two compliance options:
Charge fees first come, first qualified, first granted, with written rental criteria provided.
Charge fees with automatic refund to non-selected applicants within 7 days of tenant selection or 30 days, whichever is sooner.
Consumer credit reports must be provided automatically within 7 days of receipt, or 3 days if requested under ICRAA.
Landlord Takeaway:
Update application forms and fee schedules.
Establish clear refund and reporting processes.
Provide credit reports timely via mail, email, or electronic delivery.
AB 2801 – Security Deposits
AB 2801 ensures security deposits are used only to restore units beyond normal wear and tear:
Limits deductions to necessary repairs; carpet cleaning only if needed to restore move-in condition.
Photo documentation required:
Move-in (July 1, 2025): photos before or at lease start.
Move-out (April 1, 2025): photos after possession but before repairs/cleaning, and after repairs/cleaning.
Itemized deductions must include photos and cost explanations.
Service members: Additional deposits must be justified in writing, returned within 6 months if no rent arrears.
Landlord Takeaway:
Implement photo checklists for inspections.
Update leases for service member deposits and documentation.
Partner with property managers for compliance and reporting.
SB 611 – Fees and Security
SB 611 limits landlord fees for legal notices and protects small commercial tenants:
No fees for posting or serving legal notices (pay/quit, notice to quit, 60-day notice).
Qualified commercial tenants (micro-enterprises, small restaurants, nonprofits) cannot be charged fees if they meet employee thresholds.
Prohibits fees for paying rent via personal check; landlords must allow at least one payment method other than cash or electronic.
Landlord Takeaway:
Remove fees for legal notices and check payments.
Update commercial leases for qualified tenants.
Track annual notifications for small commercial tenants.
AB 2747 – Mandatory Offer of Credit Reporting
AB 2747 expands rental payment reporting to all tenants, allowing positive rental payment reporting to credit bureaus:
Offer required at lease signing and annually for new leases; for existing leases, offer by April 1, 2025 and annually thereafter.
Reporting is optional, with a max fee of $10 or actual cost.
Landlords cannot deduct fees from rent or security deposits.
Tenant opt-in/opt-out must be respected; self-addressed stamped envelopes required for mailed offers.
Exemptions: Landlords with <15 units and no corporate ownership.
Landlord Takeaway:
Update lease packets with credit reporting election forms.
Track annual offers to comply with AB 2747.
Provide instructions and proper documentation for opt-in/opt-out.
SB 1051 – Changing Locks & Domestic Violence Protections
SB 1051 strengthens protections for survivors of domestic violence:
Landlords must pay for lock changes at tenant request with supporting documentation.
If landlords fail to act, tenants may replace locks and be reimbursed within 21 days.
Screening protections: Cannot deny applicants for prior lock changes, lease breaks, or law enforcement calls related to domestic violence.
Landlord Takeaway:
Update policies and lease language for lock changes.
Train staff on sensitive handling of documentation.
Document reimbursements and maintain confidentiality.
AB 1815 – Discrimination on Hairstyles
AB 1815 clarifies that race protections under the Unruh Civil Rights Act include:
Hair texture
Protective hairstyles (braids, locs, twists, cornrows)
Landlord Takeaway:
Ensure tenant screening and property rules do not discriminate based on hairstyles.
Train staff and document policies to prevent violations.
AB 2579 – Mandatory Balcony Inspections
Landlords must conduct periodic safety inspections of balconies and elevated structures.
Maintain inspection records to demonstrate compliance and tenant safety.
Landlord Takeaway:
Schedule inspections annually or per local requirements.
Document findings and any repairs for safety and legal protection.
AB 653 – Housing Authority Reporting Requirements
Landlords participating in rental assistance programs must report specific tenant and unit information to local housing authorities.
Ensures transparency and compliance with government housing programs.
Landlord Takeaway:
Track tenant reports accurately.
Coordinate with property managers to meet reporting deadlines.
Maximizing Compliance & ROI in 2025
At PMI Contra Costa, we help landlords across Walnut Creek, Danville, San Ramon, Concord, Lafayette, Pleasanton, Dublin, Livermore, and the East Bay:
✅ Stay ahead of California law changes
✅ Protect landlords with full legal compliance
✅ Keep rentals profitable and risk-free
✅ Provide stress-free property management
📈 Our services include:
Residential & commercial property management
Lease-only tenant placement
Home watch for vacant units
Detailed financial, portfolio, and property insight reports
Rent vs. Sell, ROI, and Vacancy Loss calculators:
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📞 Book your free consultation today to ensure your rental properties remain compliant and profitable in 2025.
🌐 Learn more: PMI Contra Costa
📌 Disclaimer: I am not an attorney. This content is provided for informational purposes only and should not be considered legal advice. Always consult a qualified attorney for guidance on your specific situation
