California Rental Law Updates(2025)  That Every Landlord Should Know in 2026

By Archana Singhvi – Your Dream Home Matchmaker | TheArchaanaGroup.com

Trusted Real Estate Advisor | 13+ Years Experience in Luxury Real Estate

 

As we step into 2026, California Rental Property Providers face several new laws designed to promote fairness, transparency, and tenant protection. Staying informed about these changes not only keeps you compliant but also helps protect your investment and relationships with your tenants.

 

Here’s a clear breakdown of the most important new landlord and rental property laws that took effect in 2025 — and what they mean for you.

🔑 1. Security Deposit & Move-In/Move-Out Photos (AB 2801)

Starting April 1, 2025, landlords must take photos of the rental property:

* Before move-in, after move-out, and post-repair/cleaning

* Photos must be shared with tenants if deductions are made

* Deductions must be “reasonably necessary” and exclude normal wear and tear

📸 Why it matters: This ensures transparency and reduces disputes over deposits.

 

🧾 2. Application Fees & Screening Process (AB 2493)

Landlords cannot charge an application fee unless:

* A unit is available or will be soon

* Applicants are considered in the order received using written criteria

* Rejected applicants get their fee refunded within 7–30 days

💡 Tip: Have a clear written screening policy and provide applicants with their credit report.

💳 3. Positive Rental Payment Reporting (AB 2747)

Beginning April 1, 2025, landlords must offer tenants the option to report on-time rent payments to credit bureaus.

* Exempts small landlords (15 or fewer units, non-corporate)

* Landlords may charge up to $10/month for reporting

* Tenants can opt in or out anytime

⭐ Why it matters: This helps tenants build credit and promotes on-time payments.

 

🔒 4. Lock Changes for Victims of Abuse (SB 1051)

Landlords must:

* Change locks within 24 hours of a valid abuse report

* Cover all costs of the lock change

* Avoid discrimination against tenants who used this protection

🚫 Penalty: Fines of $100–$5,000 for violating these protections.

 

📅 5. Extended Response Time for Evictions (AB 2347)

Tenants now have 10 business days (previously 5) to respond to an eviction filing.

While this slightly delays the process, it helps ensure fair notice and due process.

 

🏢 6. Rights Extended to Small Commercial Tenants (SB 1103)

Certain small business tenants now enjoy residential-style protections:

* 30/60/90-day notices for rent increases or terminations

* Translated leases if negotiated in Spanish, Chinese, Tagalog, Vietnamese, or Korean

* Transparent operating cost fees

📘 Applies to: Microbusinesses, small restaurants, and nonprofits.

 

💰 7. No Fees for Serving Notices or Paying by Check (SB 611)

Landlords cannot charge fees for:

* Delivering notices to pay rent or quit

* Accepting payments by check

Also includes new security deposit return timelines for military tenants charged higher deposits.

 

⚖️ 8. ADU Amnesty & Balcony Inspection Extensions (AB 2533 & AB 2579)

ADU Amnesty: Homeowners can now legalize unpermitted ADUs built before 2020 without major penalties.

Balcony Inspections: Extended to Jan 1, 2026 (except for condos).

🏠 Great news for property owners adding income through rental ADUs!

 

🧠 9. Foreclosure & Surplus Fund Protections (AB 295 & AB 2424)

* Protect homeowners from “surplus fund chasers” for 90 days post-foreclosure

* Allow 45-day sale postponements if a listing or valid purchase offer is submitted before auction

 

🪙 10. Other Highlights from 2025

*Unlicensed contractor work limit raised from $500 → $1,000

* Small estate probate exemption raised to $750,000 for primary homes

* Fair housing updates: Expands discrimination protection under Unruh Act

* Pool safety inspections enhanced for home sales

 

 

💼 What This Means for Landlords

These updates encourage professionalism and tenant fairness — helping landlords avoid disputes, protect property value, and build credibility in a tightening rental market.

As your trusted advisor, I recommend landlords:

* Update leases and tenant screening criteria

* Review property management systems

* Stay proactive on documentation and compliance

 

🌐 Learn More:

Visit TheArchaanaGroup.com for trusted real estate insights, luxury property tips, and personalized advice to help you protect and you’re your investment portfolio.

 

Disclaimer: This article is for informational purposes only and not legal advice. Always consult an attorney or property law professional before making decisions. Laws may vary by city or county, please conduct your own due diligence.