AB 2801: New Security Deposit Regulations for California Landlords in 2025

Understanding the New Compliance Requirements

California’s rental laws are changing again. Assembly Bill 2801 (AB 2801) introduces new requirements for security deposit deductions and property condition documentation, impacting landlords across the state.

Starting in 2025, landlords must follow stricter procedures when handling security deposits, including mandatory photo documentation at various stages of a tenancy. Failure to comply could result in financial penalties and legal disputes.

This article outlines everything landlords need to know to remain compliant under the new law.

Key Requirements Under AB 2801

Mandatory Photo Documentation at Key Stages

AB 2801 requires landlords to take and retain photographs of rental units at three specific points:

Move-In Photos – Effective July 1, 2025

• Landlords must photograph the rental unit’s condition before or at the start of a new tenancy.
• These images serve as evidence of the property’s initial state.

Move-Out Photos – Effective April 1, 2025

• After a tenant vacates, landlords must take photos of the unit before any repairs or cleaning occur.
• These photos help document any damage or excessive wear beyond normal use.

Post-Repair Photos

• If landlords deduct funds from the tenant’s security deposit for cleaning or repairs, they must take additional post-repair photographs to document the completed work.

Providing Tenants with Documentation

When landlords withhold any portion of a security deposit, they must provide tenants with:

• Move-in, move-out, and post-repair photos
• A detailed, itemized statement outlining repair and cleaning costs
• A way for tenants to access these materials, which can be sent via mail, email, flash drive, or a secure website link

Legal Risks for Non-Compliance

Failing to follow AB 2801’s requirements could have serious consequences for landlords:

• Landlords who “willfully and in bad faith” fail to provide required documentation may lose the right to claim deductions from the security deposit.
• Without proper documentation, landlords may be unable to recover costs for legitimate damages.

This new law underscores the importance of detailed record-keeping and transparent security deposit practices.

What This Means for California Landlords

The passage of AB 2801 signals increased tenant protections and stricter landlord responsibilities.

For rental property owners, this means:

• More documentation requirements to justify security deposit deductions
• Potential legal exposure if proper records are not maintained
• A need for structured record-keeping and streamlined tenant communication

To avoid legal disputes and ensure compliance, landlords should implement a consistent system for capturing and storing property condition photos.

How Real Property Management Select Helps You Stay Compliant

Navigating California’s evolving rental laws can be challenging. At Real Property Management Select, we provide professional property management services that ensure landlords remain compliant with new regulations.

Our team handles:

• Move-in and move-out documentation
• Security deposit compliance and legal oversight
• Property maintenance and tenant management

Stay ahead of new rental laws. Protect your investment and avoid costly penalties by working with a trusted property management expert.

Learn more about AB 2801 and how it impacts your rental properties: www.norcalpm.com

The AB 2801 law reinforces the need for clear, organized documentation in property management. By implementing the required photo documentation process, landlords can ensure legal compliance, reduce disputes, and maintain smooth operations.

For expert assistance in managing your rental properties under California’s changing regulations, contact Real Property Management Select today.