California’s 2025 Rental Law Updates: What Every Landlord Must Know

With California rolling out new rental housing laws in 2025, landlords face more compliance challenges than ever. From eviction procedures to security deposit rules, balcony inspections, and tenant screening requirements, these updates carry serious risks for property owners who fail to comply.

At Coastal Vacation Estates, we help landlords stay ahead of these changes and protect their investments. Here’s a clear breakdown of what’s coming:

1. Eviction Procedures – New Rules & Pitfalls to Avoid

Recent changes under SB 567 tighten the rules around no-fault evictions (like owner move-ins or major renovations). Landlords must now:

• Provide specific, documented reasons for no-fault evictions.

• Offer enhanced relocation assistance to displaced tenants.

AB 1482 (Just Cause & Rent Cap) remains in effect:

• Rent increases capped at 5% + inflation, max 10% annually.

• Eviction allowed only for “just cause” if tenant has lived in the unit 12+ months.

• Just causes include: nonpayment, lease violation, owner move-in, substantial rehab, or court order.

⚠️ Common Pitfalls:

• Miscalculating allowable rent hikes.

• Missing required relocation payments.

• Using the wrong notice form or timeline.

Tip: Always confirm if your property is also subject to local ordinances (e.g., LA Rent Stabilization), which may add further restrictions.

2. Security Deposits – AB 2801 (Effective April–July 2025)

California continues to tighten security deposit rules.

• AB 12 (2024): Limits security deposits to one month’s rent for unfurnished units.

• AB 2801: Rolling out April–July 2025, requiring:

  • Photo documentation at three stages: move-in, move-out, and after repairs.

  • Written pre-move-out inspection offer, giving tenants a chance to fix issues.

  • No automatic cleaning fees—deductions only for necessary repairs beyond normal wear.

  • Itemized statement with invoices/receipts/photos within 21 days of move-out.

⚠️ Risks of Non-Compliance:

• Loss of right to withhold deposits.

• Lawsuits for double the deposit + attorney’s fees.

• Statutory penalties in court.

3. Balcony & Deck Safety Inspections – SB 326, SB 721, AB 2579 Extension

California is mandating structural safety inspections for exterior elevated elements (EEEs).

• SB 326 (Condos/HOAs):

  • Applies to buildings with 3+ units.

  • Licensed engineer/architect inspection every 9 years.

• SB 721 (Apartments):

  • Applies to multi-unit rentals (not condos).

  • Licensed inspection every 6 years.

• AB 2579 (2024):

  • Extends the initial inspection deadline to January 1, 2026.

⚠️ If hazards are found:

• Written notice must go to the HOA and city within 15 days.

• Apartments: 120 days to pull a permit, another 120 days to complete repairs.

• Condos: Immediate preventive measures required.

📅 Key Timeline:

• Jan 1, 2026: First inspections due.

• Then: Every 6 or 9 years depending on building type.

4. Tenant Screening – AB 2493 (Effective January 1, 2025)

California is cracking down on rental application practices.

• Screening fees can only be charged if applications are processed in the order received.

• Screening criteria must be shared in writing with the application.

• First qualified applicant must be approved—or denied with written reasons.

• Unsuccessful applicants may request a refund of their fee.

Fair Housing Reminder:

• Criteria must be objective and consistent.

• No questions about protected categories (race, religion, family status, etc.).

✅ Best Practices:

• Publish clear rental criteria.

• Document the review process.

• Refund fees if first applicant is skipped.

Why Landlords Need Professional Management Now More Than Ever

The penalties for mistakes under these new laws are steep—fines, lawsuits, lost rental income.

At Coastal Vacation Estates, we take the stress off landlords by:

• Handling evictions and legal notices correctly.

• Managing security deposit compliance with full photo documentation.

• Coordinating required balcony inspections with licensed professionals.

• Screening tenants with Fair Housing-compliant systems.

• Delivering 24/7 care for South Bay’s most exclusive properties.

Protect Your Property — and Your Peace of Mind

📞 Call us today to schedule a compliance review for your Manhattan Beach, Hermosa Beach, or South Bay property.