California targets fair housing with laws enhancing renter rights and limiting cost burdens
Sacramento, California – Especially benefiting tenants with many improvements to their rights and renting conditions, a wave of new laws is ready to take effect in 2025 is poised to change the rental market in California. These laws stem from more than 60 bills related to housing that were signed by Governor Gavin Newsom last fall, aimed at increasing housing production and strengthening tenant protections.
Under Assembly Bill 2747, a new rule mandating landlords to provide tenants the choice to record their positive rental payment history to consumer credit reporting organizations stands out among the modifications. Previously only accessible to residents in subsidized housing, this alternative will help to widen the range for raising credit scores especially for individuals with irregular payment histories or limited credit records.
Landlords must offer this option to every renter at the beginning of their lease and then annually starting in April 2025. Landlords who run 15 or less units, however, are excluded unless they run a business or real estate investment fund or own other properties.
The new rule also lets landlords impose a modest fee, no more than $10 a month, to cover the expenses of disclosing this credit information. Bill supporters contend that by improving creditworthiness, more renters will be able to make the move into homeownership. The California Rental Housing Association expressed concerns, meanwhile, that this could complicate the rental application process and add still another level of landlord paperwork.
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Another important legal change is the Senate Bill 611 that involves changes to security deposits and cost structures. Effective from April 2024, this law prohibits costs for some notifications including lease termination and removes additional charges for rent payments or security deposits paid by check. Landlords also have to specifically disclose any extra security deposit fees for servicemembers with bad credit or a history of property damage, with a guarantee to be refunded should the renter make all required rent payments.
Starting July 2025, Assembly Bill 2801 requires landlords to photographically record the state of a unit both before and after a new tenant moves in, therefore further guaranteeing tenant rights. This visual proof is used to support any claims for damages, therefore making sure security deposits are utilized just for required repairs and not for property improvement. Critics contend this might expose landlords to new obligations, therefore complicating the process of collecting payments for legitimate harm caused by renters.
Under Assembly Bill 846, rent increases in state-funded affordable housing will also be subject to new rules. For new affordable housing projects sponsored by the California Low Income Housing Tax Credit, this measure caps the yearly rent increase at 5% plus the change in the consumer price index, or 10% whichever is smaller. This cap was designed to stabilize the rental market and maintain homes that are affordable for lower-income people.
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Senate Bill 1051 brings important safeguards beginning January 1, 2025 for renters impacted by domestic abuse. With the stipulation that these changes be performed within 24 hours of notification, it lets renters ask for lock changes at the landlord’s expense to guarantee their safety.
Tenants can change the locks themselves and have to be paid within 21 days if landlords fail to act quickly. This legislation seeks to provide security for domestic violence survivors and protect against events outside of their control damaging their rental records.
Finally, Assembly Bill 2347 changes the procedure of eviction. It clarifies the legal motion filing process in eviction proceedings and increases the five to 10 court day term a tenant has to react to an eviction notice. Although this is considered as a way to stop unjustified evictions, detractors think it will unnecessarily prolong legal procedures and burden residents already under hardship financially.
These rules give more rights and opportunities for renters throughout California as 2025 approaches near, therefore reflecting a major change towards more fair housing policy.
