New 2025 Rental Laws: What Property Owners & Tenants Need to Know

By: Velorine

Sweeping Changes Coming to California’s Rental Market

A new wave of rental housing laws is set to reshape how landlords and tenants interact across California starting January 1, 2025. With the California Apartment Association (CAA) weighing in on hundreds of rental-related bills at the state Capitol, some of the most impactful legislative changes have now been signed into law.

From tenant screening overhauls to rent payment reporting mandates, here’s a breakdown of the key updates affecting rental property operations.

1. Tenant Screening: First-Come, First-Served

Landlords can now charge an application screening fee only if they process applications in the order received and approve the first qualified applicant. Transparency gets a boost too, screening criteria must be disclosed before the application is submitted.

2. Security Deposits: Photo Evidence Required

Property owners must now photograph rental units:

• Before move-in
• After tenant departure (before repairs/cleaning)
• After repairs are completed These images must be shared with tenants to increase fairness and accountability in deposit deductions.

3. Rent Reporting: A Credit Boost for Tenants

Landlords must offer tenants the option to have positive rent payments reported to credit bureaus. This new rule applies to market-rate and affordable housing properties, helping renters build credit history.

Tenants can be charged up to $10 per month for this service, but small landlords (owning 15 or fewer units) are mostly exempt.

4. Fee Restrictions: No More Hidden Charges

Landlords can no longer charge fees for rent payments made by check, nor for serving notices like payment demands or lease violations.

For military tenants, any higher security deposit charged must be clearly explained and returned within six months, as long as rent payments remain current.

5. Domestic Violence Protections: Lock Changes Within 24 Hours

Landlords must change locks at their own expense within 24 hours when notified that a tenant has been a victim of domestic violence. If they fail to act, tenants can change the locks themselves and be reimbursed within 21 days.

6. Eviction Process: Extra Time for Tenants

The timeframe for filing an answer to an eviction lawsuit increases from 5 days to 10 days, giving tenants more time to respond to legal proceedings.

Meanwhile, courts are tightening restrictions on procedural delays, reducing the time certain motions can stall an eviction.

7. Balcony Inspections: Deadline Extended

Rental properties with three or more units now have until January 1, 2026 to complete mandatory balcony and elevated structure inspections, pushing the deadline forward by one year.

Final Thoughts: A Balancing Act in California’s Rental Market

These new laws aim to create transparency, boost tenant protections, and streamline rental processes while keeping property owners accountable.

Expect greater emphasis on documentation, credit-building opportunities, and procedural fairness as landlords and tenants adjust to these changes in 2025.

Are California’s rental laws evolving in the right direction? The debate continues.