Overview of 2025 California Landlord-Tenant Laws
As we usher in 2025, California landlords and tenants must navigate a host of new laws. These laws introduce significant changes especially pertaining to application screening fees, security deposit rules, and more. Below, we provide a brief overview of some of the most impactful changes. However, this is merely an introduction to these complex updates—consultation with a qualified attorney or real estate professional is essential to ensure compliance with California’s vast landlord-tenant laws. Even areas such as Newport Beach that do not have specific rent control ordinances are subject to statewide rent control provisions. Costa Mesa and other local jurisdictions have their own burdensome regulations and additional rental protections.
Read our article below (including links to other more detailed articles on some of these specific topics), and/or check out our detailed video presentation which was given by Devin Lucas on January 29, 2025, to a group of realtors, covering these critical updates in detail:
New Rules for Application Screening Fees
This is a significant change. The below summarizes the issue, but or more details, check out our in-depth article on application screening fees here.
Assembly Bill 2493 prohibits charging application fees (or requires a refund of fees paid) unless specific conditions are met:
- Two Authorized Screening Fee Procedures: To charge a screening fee, landlords must follow one of these procedures:
- (A) Sequential Application Process: Applications must be reviewed in the order received, based on clearly disclosed written screening criteria provided to the applicant with the application form. Only the first applicant meeting the screening criteria can be approved. Screening fees can only be charged when an application is actively considered. If fees are inadvertently collected (e.g., multiple concurrent submissions), they must be refunded within 7 days unless the applicant chooses to apply the fee toward another available rental unit.
- (B) Refundable Screening Fee Process: Screening fees must be refunded to all applicants not selected for tenancy within 7 days of tenant selection or 30 days of application submission, whichever comes first.
- Only when a unit is available: Application fees are allowed only when a landlord knows or reasonably expects a unit to become available.
- Mandatory refunds: Fees must be refunded to unselected applicants within specified timeframes unless otherwise applied to another rental unit.
- Credit report access: Applicants must receive a copy of their credit report if a screening fee is paid.
For more details, check out our in-depth article on application screening fees here.
Tenant Credit Reporting Options
Assembly Bill 2747 requires certain landlords to offer tenants the option of having positive rental payment information reported to credit agencies:
- Applicability: Effective April 1, 2025, for new and existing leases.
- Cost limitations: Tenants may be charged up to $10 per month or the actual cost to the landlord.
- Opt-in and opt-out flexibility: Tenants can request to stop reporting but cannot re-enroll for six months after opting out.
Exemptions to Tenant Reporting Requirements
Certain landlords are exempt from offering this service:
- Small, non-corporate landlords: Landlords who own 15 or fewer residential units and are not part of a corporation, real estate investment trust, or LLC with corporate members.
- Cost-free reporting: If a landlord incurs no actual cost for providing positive rental payment reporting, they cannot charge tenants but must still offer the service.
This provision is particularly relevant for landlords and tenants in areas like Newport Beach and Costa Mesa, where maintaining strong credit can impact housing opportunities. Lucas Real Estate offers expert consultation to help landlords understand these obligations and implement compliant practices.
Enhanced Security Deposit Requirements
Assembly Bill 2801 introduces stringent rules for security deposit deductions and requires photo documentation:
- Move-in and move-out photos required: Landlords must document the property’s condition before and after tenancy and after repairs or cleaning.
- Reasonable deductions only: Deductions for damages or cleaning must be justified and exclude ordinary wear and tear.
- Transparency in documentation: Photos and explanations must be provided to tenants with the itemized statement of deductions.
For more information, read our comprehensive article on security deposit updates. This article details the new photos requirements. Lucas Real Estate offers expert guidance and property management services to ensure compliance with these requirements.
No Fees for Termination Notices or Check Payments
Senate Bill 611 prohibits landlords from:
- Charging fees for serving termination notices
- or for tenants paying by check.
- Charging service members a higher deposit without providing a written explanation. Excess deposits must be returned within six months if rent is paid on time.
Unlawful Detainer Answer Period Extended
Assembly Bill 2347 extends the time for tenants to file a response to an unlawful detainer complaint from 5 business days to 10 business days.
Additionally, the timeline for demurrers (motions to dismiss) is expedited to reduce delays in eviction proceedings.
New Protections for Small Commercial Tenants
Senate Bill 1103 extends certain residential tenant protections to “qualified commercial tenants,” including:
- Notices for rent increases and termination: 30- and 90-day requirements.
- Translated leases: Required when negotiated in specified languages.
- Fee transparency: Building operating cost fees must be proportional and documented.
“Qualified commercial tenant” means a tenant of commercial real property that meets the following requirements (along with notice requirements to the landlord):
The tenant is a microenterprise [“microenterprise” means a sole proprietorship, partnership, limited liability company, or corporation that meets both of the following requirements: (1) Has five or fewer employees, including the owner, who may be part time or full time. (2) Generally lacks sufficient access to loans, equity, or other financial capital),
a restaurant with fewer than 10 employees,
or a nonprofit organization with fewer than 20 employees.
Expanded Lock-Change Protections for Abuse Victims
Under Senate Bill 1051, landlords are now responsible for the cost of changing locks when a tenant or an immediate family or household member is a victim of abuse. Key updates include:
- Landlord covers costs: Locks must be changed within 24 hours of receiving documentation. Tenants may change locks themselves if the landlord does not comply, with reimbursement required within 21 days.
- Wider documentation accepted: Includes forms from qualified third parties.
- No adverse actions permitted: Prohibits screening or rental denials based on a tenant’s use of lock-change protections.
Final Thoughts
These 2025 landlord-tenant laws introduce critical updates that every property owner, manager, and tenant in California should understand. This overview highlights some of the most significant changes, but it is not exhaustive. The complexities of landlord-tenant compliance require careful attention to detail.
Lucas Real Estate specializes in helping landlords in Newport Beach and Costa Mesa navigate the evolving legal landscape. From expert advice to comprehensive property management, we are here to support you every step of the way. For more insights and dedicated articles on specific laws, visit our blog or contact us directly for personalized guidance.
Contact Lucas Real Estate Today
Lucas Real estate specializes in assisting property owners and Trustees with real property. Devin Lucas is Real Estate Broker, Real Estate Attorney, and REALTOR®, Courtney Lucas is a CPA and REALTOR®. Together, they are experts in California Real Estate sales, capital gains issues, property tax matters including Propositions 13, 58, 193, 60, 90 and new Proposition 19 and property management.
If you’re preparing to sell, lease or manage real property in Newport Beach, Costa Mesa, or nearby communities like Huntington Beach or Laguna Beach, trust Lucas Real Estate to handle your transaction with precision and professionalism. From understanding key landlord tenant requirements, to taxation issues, to disclosure exemptions to fulfilling your obligations, we ensure a smooth and compliant sale.
For more insights and professional real estate services in Newport Beach, Costa Mesa, and the coastal areas of Orange County, contact Lucas Real Estate today. Let us guide you through your next property transaction with confidence and clarity.
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– Devin Lucas
Author Devin R. Lucas is Real Estate Professional – a Real Estate Broker, Real Estate Attorney, and REALTOR® – specializing in Newport Beach, Costa Mesa and Orange County coastal communities, serving individuals and Trustees in residential real estate.
Lucas Real Estate – Attorney Devin Lucas and CPA Courtney Lucas – are experts in California Real Estate sales, capital gains issues and property tax matters including Propositions 13, 58, 193, 60, 90 and new Proposition 19.
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