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New California Security Deposit Law 2025: AB 2801 Brings More Changes

New California Security Deposit Law 2025: AB 2801 Brings More Changes

New CA Security Deposit Law 2025: Navigating AB 2801’s New Requirements for Landlords

Are you tired of the ongoing changes in California’s rental laws? Well... here’s more. In 2024, AB 12 revised the maximum allowable security deposit amounts, with exceptions for small landlords. Now, AB 2801 introduces even more requirements starting in April 2025, adding new layers of responsibility to an already complex property management process. Let’s dive into what’s changing and how it affects you. For those who want to explore the specifics, you can read the full text of AB 2801 here.

1. Mandatory Move-In and Move-Out Photo Documentation

Landlords are now required to take photos documenting the property’s condition both before tenants move in and after they move out. In addition, photos must be provided for any repairs or cleaning done during turnover. This adds another level of record-keeping for landlords, who must now carefully manage these photos for each tenant.

While this might help resolve disputes about the security deposit, it adds more work to the landlord’s side. Many landlords already use videos for documentation, but with this law specifically requiring photos, videos may no longer suffice.

2. Pre-Move-Out Inspections: Identifying Repairs in Real Time

It’s uncommon for tenants to be fully moved out during a pre-move-out inspection, but when it happens, landlords face more complexity. All repairs and cleaning needed must be identified during this inspection. Anything missed in that moment can’t be deducted from the security deposit afterward.

This creates added pressure for landlords to be extremely thorough during these inspections. Missing any repairs or cleaning needs could result in losing out on legitimate costs. Being proactive and communicating any identified issues with tenants right away is now more important than ever.

3. Limits on Cleaning Costs

Landlords are now restricted in what they can charge tenants for cleaning. Professional services like carpet cleaning can only be required if necessary to return the property to its original condition (excluding normal wear and tear). This limits recovery for cleaning costs, but also highlights the need for documenting the property’s condition, especially regarding pre-existing wear.

This further increases the level of scrutiny landlords must apply during turnover, as any cleaning charges will now require solid proof. This can lead to higher costs, as landlords need to justify the necessity of each expense.

A Growing Burden for Landlords

These changes are part of a larger trend of increasing regulations for landlords in California. In the past few years, everything from security deposit limits (AB 12) to tenant protections has shifted the responsibility more toward landlords. Local enforcement has also ramped up—Santa Barbara City recently filed criminal charges against a landlord and property manager for just cause violations.

While many of these changes aim to protect tenants and add fairness to the rental process, the reality is that landlords are bearing more of the administrative burden. Managing a rental property now requires more attention to legal details than ever before. It’s no longer enough to simply keep your property in good condition—staying compliant with constantly changing laws is becoming a full-time effort.

Conclusion: Understanding the Challenges for Both Sides

I understand the challenges tenants face, and these changes do make the process fairer for them. However, landlords are increasingly feeling like these new laws are turning into 'gotchya' mechanics, stacking the deck against them. With each new regulation, landlords take on more responsibility, making it harder to manage properties without risking violations of these ever-changing rules. Every new law adds complexity, and landlords must keep up to avoid penalties and disputes. For many, it’s beginning to feel like they’re being set up to fail, as the burden of compliance continues to grow—solely on the landlord.

Need help managing these challenges? Mission City Property Management is here to take the stress off your shoulders. We stay updated on all the latest regulations to keep you compliant and your properties well-managed. Contact us at info@missioncitypm.com or call 805-319-7000 to see how we can help. 

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