By Summer Knight
2025 President
Santa Barbara Association of Realtors
As we enter April 2025, it’s crucial to be aware of two significant housing-related laws that just came into effect in California. These new regulations aim to enhance tenant rights and clarify landlord responsibilities. Below is a brief overview of each:
1. Assembly Bill 2747 (AB 2747): Positive Rental Payment Reporting
Effective April 1, 2025, landlords of residential properties with more than 15 total units are required to offer tenants the option to have their on-time rent payments reported to at least one nationwide consumer reporting agency. This initiative allows tenants to build their credit profiles through consistent rent payments. Landlords may charge tenants a fee for this service, not exceeding the lesser of $10 per month or the actual cost incurred. Certain exemptions apply, particularly for smaller landlords and specific housing developments. Additionally, if a property owner owns 15 or fewer units but they hold ownership as a Real Estate Investment Trust (REIT), corporation, or a limited liability company (LLC) with at least one corporate member they are required to also follow the new law.
2. Assembly Bill 2801 (AB 2801): Security Deposit and Property Condition Documentation
Starting April 1, 2025, landlords must adhere to stricter documentation requirements concerning security deposits. For tenancies beginning on or after July 1, 2025, landlords are mandated to take photographs of the rental unit immediately before or at the inception of the tenancy. Additionally, upon tenant move-out, landlords must photograph the unit both before and after any repairs or cleaning for which deductions from the security deposit may be made. These photographs, along with detailed itemized statements, must be provided to tenants to justify any deductions.
These laws underscore California’s commitment to fair housing practices and the protection of both tenants and landlords. Given the complexities and potential implications of these regulations, we strongly encourage property owners and tenants to consult with their property managers or legal counsel to fully understand their rights and obligations.
Furthermore, for those considering investing in real estate, partnering with a professional REALTOR® is invaluable. REALTORS® possess the expertise and up-to-date knowledge to navigate the evolving landscape of California real estate effectively.
Stay informed, stay compliant, and let’s continue to foster a fair and transparent housing market in our community.
For more information and resources, visit www.sbaor.org.
Summer Knight is a Santa Barbara native and top producing Realtor at Sun Coast Real Estate. Summer has been a member of the Santa Barbara Association of Realtors for over 20 years and currently serves as the President of the Board of Directors. Reach Summer at 805-886-1261 or summer.k.knight@gmail.com.
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