New Year – New Laws – Shared Article

Hello Caton Team Friends, I just read this great post about the new laws effecting Real Estate in 2025. I thought I would share them here.

AB 2747: Tenant Rent Payment Credit Reporting (Effective January 1, 2025)

Beginning January 1, 2025, landlords of buildings with 15 or more units must provide tenants with the option to have their rent payments reported to credit reporting agencies. This option must be offered when new tenants sign a lease and to existing tenants at least once a year. Tenants can choose to join or leave the reporting system at any time. To protect tenants, the law restricts fees for this service, ensuring they do not exceed $10 or the actual cost of the credit reporting service, whichever is lower.

AB 2684: Safety Element: Extreme Heat (Effective January 1, 2025)

AB 2684 mandates that local governments integrate strategies to mitigate extreme heat into their general planning by January 1, 2028. The California Apartment Association (CAA) has expressed concerns that this could impose costly air-conditioning requirements on existing building owners. Under this law, cities and counties must update their safety elements during the next revision of their general plans or local hazard mitigation plans.

SB 900: HOA and Utility Maintenance (Effective January 1, 2025)

SB 900 enables property managers to oversee and address utility repairs in HOA-managed properties if the HOA fails to act. Taking initiative on repairs can reduce tenant dissatisfaction and help prevent conflicts that might lead to legal disputes.

SB 1037: Increased Penalties for Housing Law Violations (Effective January 1, 2025)

SB 1037 imposes stricter penalties on local governments that postpone housing developments. This legislation aims to promote faster project approvals and construction to address California’s persistent housing shortage. Owners should monitor potential changes in the rental market as affordable housing becomes more readily available, which could influence tenant choices and overall demand.

AB 2304: Tenant Protection Bill (Effective January 1, 2025)

Starting January 1, 2025, AB 2304 extends the law limiting public access to unlawful detainer records to include mobile home tenants. This change removes the previous exemption for mobile homes, ensuring that mobile home tenants have the same protections as other tenants regarding restricting access to eviction records.

AB 2347: Extending Time to Respond to Unlawful Detainer (Effective January 1, 2025)

AB 2347 increases the response time for an unlawful detainer complaint, extending it from 5 to 10 days, excluding weekends and judicial holidays.

AB 2493: Tenancy: Application Screening Fee (Effective January 1, 2025)

This legislation removes the prior condition requiring applicants to specifically request a copy of their consumer report from the landlord or property manager. Instead, it now requires landlords or their agents to automatically provide applicants with a copy of the report within 7 days of obtaining it.

AB 2081 Tenant Security Deposits (Effective April 1, 2025)

Landlords must include pre-move-in, pre-repair, and post-repair photos with the security deposit disposition form for tenancies starting on or after July 1, 2025, and repairs as of April 1, 2025. Deductions for professional cleaning are only allowed if needed to restore the unit to its original condition.

SB 611 Limiting Fees and Protecting Service Members (Effective July 1, 2025)

SB 611, effective July 1, 2025, introduces amendments to Civil Code section 1946(b) to restrict landlords from imposing fees on rent payments made by check or for delivering and serving tenancy-related notices. Additionally, the legislation enhances protections for military service members by mandating the return of any additional security deposit after six months of residency, as long as the tenant is not behind on rent during this period.

Please note that each city and county will also release its own rules and regulations in response to the new state laws.

The 2025 changes to California real estate laws bring challenges and opportunities for property owners. By proactively addressing these updates, landlords can ensure compliance while protecting their investments. Staying informed and prepared for these adjustments is essential for effectively navigating the evolving legal landscape. Contact me if you’d like to understand how these new laws will impact your bottom line.

(Note: in an earlier version of this post, it incorrectly stated that AB 2216 passed which it did not. The post was edited 1/9/2025 to show this update.)

I read this blog post HERE.

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