2025 New California Real Estate Laws

2025 New California Real Estate Laws

2025 New California Real Estate Laws


In 2025, the landscape of real estate and property laws in California is set to undergo some significant changes, bringing new challenges and requirements for landlords, property managers, and homeowners which will influence their duties, decisions and day-to-day operations.

Annually, the introduction of new legislation means property owners and industry professionals must navigate a maze of more rigorous regulations. Failure to adhere to these updates could lead to hefty fines, legal damages, and attorney fees. If you have questions about these new laws and how it will impact you or your property, contact one of our listed real estate lawyers to discuss the details.

Here are the new California real estate laws effective on January 1, 2025:

AB 2747: Credit Reporting of Rent Payments

This legislation mandates landlords of properties with 15 or more units to give tenants the choice to have their rent payments reported to credit bureaus. This option must be presented at lease signing and annually thereafter. Tenants have the freedom to opt in or out at any time, with the law setting a cap on any fees related to this service at $10 or the actual cost, whichever is lower.
Official AB 2747 Citation

AB 2684: Addressing Extreme Heat in Planning

AB 2684 requires local jurisdictions to integrate strategies for mitigating extreme heat into their general plans by no later than January 1, 2028. This could lead to new requirements for cooling systems in buildings, which might burden property owners with additional costs, according to the California Apartment Association
Official AB 2684 Citation

AB 2801: Security Deposit Handling

New procedures for handling security deposits involve landlords providing photographic evidence of the rental property’s condition at three stages: before move-in, at move-out, and before and after any repairs or cleaning. These photos must accompany the security deposit disposition notice. Pre move-in photo requirements apply to tenancies starting after July 1, 2025, while repair-related photos will be mandatory from April 1, 2025. Also, landlords are restricted from charging tenants for routine cleaning unless it’s needed to return the property to its initial condition
Official AB 2801 Citation

AB 2304: Extending Tenant Protections to Mobile Homes

This bill broadens tenant protections by including mobile home residents under the umbrella of restricted access to unlawful detainer records, aligning their rights with other tenants.

Official AB 2304 Citation

SB 900: Empowering Property Managers in HOAs

Under SB 900, if a homeowners’ association (HOA) does not act on utility repairs, property managers can take over. This provision aims to maintain tenant satisfaction by ensuring timely maintenance, thereby preventing potential legal issues.
Official SB 900 Citation

AB 2216: No Ban on Common Pets

Landlords will no longer be able to prohibit common household pets without a valid reason, amending Civil Code 1950.5 to foster a more pet-friendly rental environment.
Official AB 2216 Citation

AB 2347: More Time to Respond to Eviction Notices

The response period for tenants facing an unlawful detainer action is now doubled to 10 days, not including weekends and judicial holidays, allowing more time for legal preparation.
Official AB 2347 Citation

SB 611: Fee Limitations and Military Member Protections

SB 611 outlaws fees for certain tenant services like paying rent by check or serving notices. It also bolsters protections for military personnel by mandating the return of any overcharged security deposit after six months of tenancy, assuming rent payments are up-to-date.
Official SB 611 Citation

AB 2493: Changes in Application Fee Policies

Landlords are now obligated to automatically provide applicants with a copy of their consumer report within seven days, removing the previous onus on the applicant to request it.
Official 2493 Citation

Best New Real Estate Law in California for 2025

SB 1037: Tougher Penalties for Housing Delays Caused by Government Dragging Their Feet

This new planning and zoning law increases the penalties for local governments that hinder and delay housing project timelines, promoting quicker development to address California’s housing shortage. This could shift dynamics in the rental market as more affordable housing options become available.
Official SB 1037 Citation

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