2025 California Real Estate Laws: A Summary of Key Changes for Landlords and Property Managers

As California real estate and property laws evolve in 2025, landlords, property managers, and homeowners face critical updates that can significantly impact their responsibilities and operations.

Each year, new laws impose increasingly stringent regulations on property owners and the real estate industry. Non-compliance with these laws can result in significant consequences, including civil penalties, damages, and attorney fees. Here is what is coming in 2025. 

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

AB 2747 establishes a requirement that landlords of buildings with 15 or more units will need to offer tenants the option to have their rent payments reported to credit reporting agencies when signing a lease and to existing tenants starting January 1, 2025. The offer must be made at least once annually thereafter. Tenants can opt in or out of the reporting system at any time, and the law includes safeguards to prevent excessive fees, capping charges at $10 or the actual cost of the credit reporting service, whichever is less.

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

AB 2684 requires local governments to incorporate extreme heat mitigation strategies into their general planning by January 1, 2028. The California Apartment Association (CAA) believes this requirement could result in expensive air-conditioning obligations for owners of existing buildings. The law requires cities and counties to 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 allows property managers to step in and manage utility repairs in HOA-governed properties when the HOA fails to take action. Proactively addressing repairs can help prevent tenant dissatisfaction and avoid potential disputes that could escalate into legal challenges. 

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

SB 1037 introduces increased penalties for local governments that delay housing developments. This law is designed to encourage faster approvals and development to combat California’s ongoing housing crisis. Property managers should be aware of potential shifts in the rental market as affordable housing becomes more accessible, which could affect tenant preferences and demand. 

• AB 2216: Cannot Prohibit Common Household Pets (Effective January 1, 2025)  

This bill amends Civil Code 1950.5 to prohibit landlords from restricting tenants from owning or keeping common household pets unless there is a reasonable justification.

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

AB 2304 removes the exemption for mobile homes, extending the law that limits public access to unlawful detainer records to include mobile home tenants. With this change, starting January 1, 2025, mobile home tenants will now be subject to the same protections as other tenants in terms of restricting access to unlawful detainer (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 days to 10 days, excluding weekends and judicial holidays.

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

This bill eliminates the previous requirement that applicants request a copy of the consumer report from the landlord or property manager and instead, mandates that landlords or their agents provide a copy of the report to the applicant within 7 days of receiving it.

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

AB 2081 changes how owners manage move-in and move-out inspections for compliance with security deposit disposition. It requires landlords to take photographs of rental units at three key points: immediately before a tenant moves in, at the end of the tenancy, and before and after any necessary repairs or cleaning. These photos must be provided to the outgoing tenant along with the security deposit disposition form. The requirement for pre-move-in photos applies to tenancies beginning on or after July 1, 2025. The rules for pre-repair and post-repair photos will take effect starting April 1, 2025. Additionally, landlords cannot deduct the cost of professional carpet cleaning or other cleaning services from a tenant’s security deposit unless such cleaning is reasonably necessary to restore the unit to its original condition at the start of the tenancy.

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

SB 611 amends Civil Code section 1946(b) to prohibit landlords from charging fees for rent payments made by check or for posting and serving notices related to the tenancy. Additionally, the bill expands protections for military service members such as requiring landlords to return any additional security deposit collected from service members after six months of residency, provided the tenant is not in arrears during that time.

The 2025 updates to California real estate laws present both challenges and opportunities for property owners and managers. Staying ahead of these changes ensures not only compliance but also helps safeguard your investments.

If you have questions about how these new laws affect your property or need assistance updating your lease agreements and procedures, contact our office today at 310-619-4941. Our team is ready to help you navigate these changes confidently and protect your property interests.