Steve Welty

Issue# 42

April 2025

Happy Saturday, Housing Heroes!

Heads up - April has brought two legislative updates for housing providers in California. We’re talking about fresh requirements for positive rent reporting and another one concerning security deposit documentation.

What’s the Deal with AB 2747?

Effective April 1, 2025, AB 2747 requires many housing providers to offer tenants the option to have their on-time rent payments reported to at least one credit bureau. This applies to properties with 16 or more units except for those already covered by similar rules for certain assisted housing developments and to corporate-owned properties with 15 or fewer units if the owner holds more than one rental property. For new leases starting on or after April 1, 2025, this option must be included at the time the rental or lease agreement is entered into, while existing tenants should have received the offer by that date.

What’s the Deal with AB 2801?

AB 2801 is rewriting the rules on security deposits. As of April 1, 2025, housing providers must take pre-repair/cleaning photos within a reasonable time after a unit is returned, but before any repairs or cleaning work begins, and post-repair/cleaning photos once the work is completed. These photographs, along with the required bills, invoices, or receipts, must be included in any itemized disposition when deductions are made for repairs or cleaning. The law updates documentation forms to facilitate compliance with these new photo requirements and other changes.

Here’s What’s Changing (and When):

Before Move-In (Starting July 1, 2025): You’ll need to take clear, date-stamped photos to document the condition of the property at the beginning of the lease.
After Move-Out (Starting April 1, 2025): Within a reasonable timeframe after the tenant leaves—and before any repairs or cleaning—you’ll need to take another set of photos to capture the unit’s condition.
Post-Repair Photos: Once repairs and cleaning are finished, take final photos to show the completed work.

➡️ Pro Tip: These photos aren’t just for your records, they need to be sent to the tenant along with the itemized deductions, either by mail, email, flash drive, or a link to view online.

Why Should You Be Concerned?

Both laws add new steps from offering rent reporting and capturing detailed photos to updating your documentation processes that may stretch your resources.
Whether it’s the precise timing for offering rent reporting or the need for thorough photographic documentation for security deposits, the details matter.
With these changes effective in April 2025, now’s the time to adjust your processes and ensure you’re ready to meet the new standards.

My Take:

These updates aim to empower tenants and enhance transparency, but they also mean more hoops for housing providers to jump through. It’s crucial to prepare for these changes now review your current practices and consider reaching out to industry experts if you need guidance. Your proactive approach today is what will keep you ahead of the curve tomorrow.

Stay informed, stay proactive, Housing Heroes. For more details on these legislative changes, be sure to review the full texts of AB 2747 and AB 2801.

🎥 AB 2801: The Security Deposit Update California Housing Providers Need to Know

Get A Free Rental Analysis

Are you wondering how to pinpoint the perfect rental price for your property? Setting the right rate isn’t just about covering your expenses, it’s about maximizing your investment while staying competitive in the market.

Get my Free Report