Do You Know Why California’s New Rental Laws Could Cost You Thousands?

Introduction: What Landlords Need to Know for New California Rental Laws

California’s rental regulations are changing dramatically in 2025, reshaping how landlords handle evictions, deposits, inspections, and tenant screening.

If you own investment property in Manhattan Beach, Hermosa Beach, or the South Bay, these updates could expose you to steep fines, lawsuits, or lost income if you miss a single compliance step.

Coastal Vacation Estates, Los Angeles’ premier luxury property management firm, specializes in ensuring every client stays ahead of the law while preserving both income and reputation.

1. Eviction Laws: SB 567 & AB 1482

Stricter Just-Cause Requirements

The new SB 567 expands California’s already-strict “no-fault” eviction laws. Property owners must now:

• Provide specific written justification for any eviction.

• Offer relocation assistance for tenants displaced by owner move-ins or renovations.

AB 1482 (Rent Cap & Just Cause Eviction Law) continues to:

• Cap rent increases at 5% + local inflation (max 10%) per year.

• Require just cause for evictions once tenants have lived in a property for 12 months.

  
  

Common Mistakes to Avoid

• Miscalculating rent caps.

• Using incorrect notice forms.

• Failing to provide relocation payments for no-fault evictions.

Pro Tip: Always confirm your city’s specific ordinance. The L.A. Rent Stabilization Ordinance and other local rules can be even stricter than state law.

2. Security Deposit Rules: AB 2801 & AB 12

California now treats security deposit compliance as a legal obligation, not a suggestion.

AB 12 (2024) caps deposits for unfurnished rentals at one month’s rent.

AB 2801 (effective April – July 2025) requires landlords to:

1. Photograph unit conditions before move-in, after move-out, and post-repairs.

2. Offer a pre-move-out inspection so tenants can fix issues before deductions.

3. Provide a detailed itemized statement within 21 days of move-out, supported by invoices and receipts.

Penalties for mistakes: Courts can order landlords to return twice the deposit amount, plus attorney fees and damages.

For South Bay owners, this means integrating photo-verified deposit systems and airtight documentation — something Coastal Vacation Estates manages seamlessly.

3. Balcony & Deck Inspections: SB 326, SB 721 & AB 2579

California continues to emphasize structural safety after several balcony-related accidents.

Condominiums & HOAs (SB 326)

• Applies to buildings with three or more units.

• Requires Exterior Elevated Element (EEE) inspections by a licensed architect or engineer.

• First inspection deadline extended to January 1, 2026.

• Reinspection required every nine years.

  
  

Apartment Buildings (SB 721)

• Similar EEE inspections required every six years.

  
  

Key Deadlines & Compliance

• All initial inspections must be completed by January 1, 2026.

• Any hazards discovered must be reported within 15 days.

• Repairs must begin within 120 days of the notice.

Delaying inspections can lead to fines, failed insurance renewals, and unsafe conditions — all preventable through proactive management.

4. Tenant Screening & Fair Housing Compliance: AB 2493

Beginning January 1, 2025, landlords must handle tenant applications with greater transparency.

AB 2493 requires:

• Processing applications in the order received.

• Providing written screening criteria upfront.

• Refunding fees for unprocessed applicants.

  
  

Fair Housing Act Best Practices

To avoid discrimination claims, screening must focus on objective factors like credit, rental history, and income — not personal attributes such as family status, race, or religion.

Best Practices for Compliance

• Publish clear, objective criteria online.

• Keep dated records of all applications.

• Document reasons for non-approval in writing.

Coastal Vacation Estates applies Fair Housing standards rigorously, protecting owners from the costly consequences of even unintentional violations.

5. Why South Bay Landlords Trust Coastal Vacation Estates

Navigating California’s intricate 2025 rental reforms demands not just diligence — but expertise.

Coastal Vacation Estates provides full-service compliance management for high-end rentals across Manhattan Beach, Hermosa Beach, Redondo Beach, and the greater Los Angeles South Bay.

Our Services Include

• Preparation and service of all legal notices

• Security-deposit documentation compliant with AB 2801

• Coordination of balcony inspections under SB 326 / 721

• Fair Housing-compliant tenant screening

• 24/7 property oversight for luxury homes

• Over 20 years of trusted local expertise

  
  

6. Schedule Your 2025 Compliance Consultation

California’s rental laws are only getting tougher. The cost of one misstep could far exceed the cost of professional management.

Protect your property — and your peace of mind.

Willie BaronetCoastal Vacation Estates Inc.1219 Morningside Dr. • Manhattan Beach, CA 90266DRE #01503199 | 310-801-0633www.CoastalVacationEstates.com

What You Can Do Now to Stay Ahead

Don’t wait for the state to enforce these laws — a few smart steps today can save you thousands later.

Here’s how to get started:

• Review your current leases for any clauses that conflict with SB 567, AB 1482, or AB 2801.

• Audit your tenant files to ensure you have complete notices, deposit records, and inspection documentation.

• Schedule balcony and deck inspections early to secure preferred contractors before the 2026 deadline.

• Update your tenant-screening process with written criteria and Fair Housing compliance language.

• Consult a professional property manager to manage the new documentation, notices, and timelines.

At Coastal Vacation Estates, we handle all of these details for our clients — ensuring full compliance, peace of mind, and continued profitability.