2025 California Rental Laws Explained: A Landlord’s Roadmap

California’s landlord-tenant laws are constantly evolving, and 2025 brings another wave of regulatory updates that landlords must be aware of to stay compliant and avoid costly legal pitfalls. The rental market in California remains one of the most heavily regulated in the nation, with statewide tenant protections, rent control laws, and fair housing policies that impact nearly all property owners—from individual landlords with a single rental unit to large-scale property management firms.

While many of the 2024 regulations remain in effect, new laws taking effect in 2025 further refine eviction procedures, security deposit rules, rent increase limits, and anti-discrimination protections. Additionally, some temporary COVID-era measures have expired, which may affect how landlords handle rent collection, lease enforcement, and tenant screening.

These legislative changes can be complex, but understanding them is crucial to maintaining a legally sound rental business. Whether you’re adjusting to tighter restrictions on security deposit deductions, navigating stricter just-cause eviction requirements, or ensuring your rental application process complies with fair housing laws, this guide provides a clear breakdown of what’s changing and how to adapt.

From eviction moratorium updates to new fair housing protections and compliance mandates, this guide covers the most important landlord-tenant law updates for 2025, helping property owners and managers stay ahead of the curve and avoid legal disputes.

Key Takeaways for 2025

• Security Deposits: Capped at one month’s rent for most landlords. Starting April 2025, photo documentation is required before withholding for damages.
• Eviction Rules: Tenants now have 10 days (up from 5) to respond to eviction lawsuits. Stricter just-cause requirements apply to owner move-in and remodel evictions. Domestic violence survivors can request 24-hour lock changes.
• Rent Control Updates: The statewide rent cap (5% + CPI, max 10%) remains in effect. No new statewide rent freezes, and Costa-Hawkins remains intact. Disabled tenants in rent-controlled units can now transfer to accessible units at the same rent.
• Fair Housing & Accessibility: Landlords cannot reject Section 8 tenants based solely on credit history and must offer an alternative proof of financial ability.
• Other Compliance Requirements: Landlords must offer rent payment credit reporting, cannot charge junk fees (e.g., check processing or notice delivery fees), and must complete balcony safety inspections by January 2026.

1. Security Deposit Regulations in 2025

California’s security deposit laws have changed significantly, imposing stricter caps, deduction limits, and documentation requirements.

What’s Changing?

• Security deposits are now capped at one month’s rent (AB 12, 2024), regardless of whether the unit is furnished.
• Small landlords with 4 or fewer units can still charge up to two months’ rent, except for military tenants, who are always capped at one month.
• Landlords cannot deduct for routine cleaning or minor wear-and-tear. Charges for carpet cleaning, standard repainting, or minor scuffs are prohibited.
• Starting April 2025, landlords must provide dated photo evidence of the unit’s condition before and after move-out to justify any deposit deductions.
• Failure to provide proper documentation could result in landlords forfeiting deposit deductions and facing legal penalties.

Compliance Tips for Landlords

• Update lease agreements to reflect the new deposit cap and deduction rules.
• Implement a move-in/move-out checklist with timestamped photos to document the unit’s condition.
• Return security deposits within 21 days with a detailed itemized deduction list, accompanied by photo proof.

2. Eviction Laws: Extended Deadlines & Stricter Just-Cause Rules

What’s New for 2025?

• Eviction notice response time increased from 5 days to 10 days (AB 2347). Tenants now have more time to fight eviction lawsuits.
• Just-cause eviction rules tightened under SB 567:
  • Owner move-in evictions require landlords to occupy the unit for at least 12 months.
  • Remodel-based evictions must provide evidence of substantial renovations, including permits and contractor agreements.
  • If a landlord does not follow through, they must offer the unit back to the displaced tenant at the same rent.
• Domestic violence survivors can request a lock change within 24 hours, and landlords must comply at their own expense (SB 1051).

What This Means for Landlords

• Plan for longer eviction timelines due to extended response periods.
• Ensure just-cause evictions meet legal requirements, including proof of owner move-in or renovation.
• Update your tenant notices and eviction forms to reflect 2025’s legal changes.

3. Rent Control & Rent Increase Limits in 2025

What’s Staying the Same?

• The Tenant Protection Act (AB 1482) still caps rent increases at 5% + CPI (max 10%) per year for most units built before 2009.
• Costa-Hawkins protections remain, meaning cities cannot expand rent control to single-family homes or buildings constructed after 1995.
• Additionally, some cities, like Milpitas, California have rent review board that helps mediate disputes between landlords and tenants over rent increases. 

What’s New?

• Disabled tenants in rent-controlled buildings can transfer to accessible units at the same rent (AB 1620).
• Some cities, like Pomona, are modifying rent caps—check local laws for additional rent restrictions.

How to Stay Compliant

• Calculate allowable rent increases correctly using the CPI index for your region.
• Follow local rent control laws, as some cities impose lower caps than AB 1482.
• Update lease agreements to include the required just-cause and rent cap notices.

4. Fair Housing & Tenant Protections in 2025

California strengthened fair housing laws to prevent discrimination against voucher holders, disabled tenants, and justice-involved individuals.

New Protections in 2025

• Landlords cannot deny Section 8 tenants based on credit history alone (SB 267). They must offer an alternative financial verification process.
• Cities can no longer mandate nuisance-related evictions (AB 1418). Landlords are not obligated to evict tenants solely based on police activity or allegations.
• Harassment laws were expanded, increasing penalties for landlords engaging in coercion or intimidation tactics.

Best Practices for Landlords

• Review and update tenant screening policies to ensure they comply with fair housing laws.
• Avoid blanket criminal history bans, as local laws are restricting their use.
• Ensure all rental ads comply with fair housing regulations—avoid language that could suggest bias.

5. New Compliance & Transparency Requirements

California is cracking down on hidden rental fees and improving tenant rights in the application process.

“Junk Fee” Ban (SB 611)

• No fees for check payments or serving legal notices.
• All pet fees, parking charges, and amenity costs must be disclosed upfront—no surprise fees.

Application Screening Reforms (AB 2493)

• Landlords must process applications in the order received—no cherry-picking the “best” applicants.
• If an application fee is charged, unused fees must be refunded if the applicant isn’t screened.
• Written screening criteria must be provided upfront before collecting any fees.

Rent Payment Credit Reporting (AB 2747)

• Landlords with 15+ units must offer tenants the option to report rent payments to credit bureaus.
• A maximum $10/month fee can be charged for this service, but only if there’s an actual cost.

Balcony Inspections Deadline Extended (AB 2579)

• The first mandatory balcony and deck safety inspection deadline has been moved to January 2026.
• Applies to multi-unit properties with exterior walkways, balconies, or decks.

Final Compliance Checklist for Landlords

✔ Update leases to reflect new security deposit, rent control, and eviction laws.
✔ Revise application policies to follow first-come, first-served rules.
✔ Eliminate hidden fees—disclose all charges upfront to avoid legal penalties.
✔ Ensure just-cause evictions comply with stricter 2025 regulations.
✔ Prepare for balcony inspections by the 2026 deadline.
✔ Stay informed on city-specific rent control and tenant rights updates.

By following these 2025 rental law changes, landlords can avoid legal pitfalls, reduce disputes, and maintain compliance in California’s evolving rental landscape.

Referances:

1. Vox – “It’s a make-or-break moment for housing in California”
2. AP News – “California officials warn against price gouging as rents soar in fire-stricken Los Angeles”
3. Architectural Digest – “Rent Gouging: What Is It, Is It Legal, Can You Fight Back?”
4. Wikipedia – “California Housing Shortage”
5. California Apartment Association – “New 2025 Laws for the Rental Housing Industry”
6. Lucas Real Estate – “2025 Landlord-Tenant Law Updates: Key Changes and Compliance Tips For California Landlords”
7. Mesa Properties – “11 New Laws for California Landlords in 2025”
8. CalMatters – “New CA laws 2025: Renters get more time to fight evictions”
9. California Department of Justice – “Landlord-Tenant Issues”