Big changes are coming to how landlords can charge tenants in California. SB 681 could make many common rental fees — like application charges and convenience fees — illegal or heavily restricted.
At Good Life Property Management, we help landlords across Southern California stay compliant while protecting their income. Want to ensure your lease agreements and rent collection practices are up to date? Schedule a call with our team today to stay ahead of the curve.
Key Takeaways
SB 681 aims to restrict or eliminate fees like application fees, convenience fees, and unitemized service charges.
Landlords may need to bundle fees into rent to stay compliant.
Full transparency and lease auditing are essential steps to prepare.
The law could take effect as early as January 2026.
Table of Contents
What Is SB 681 Trying to Do?
SB 681, introduced by Senator Aisha Wahab, passed the California Senate in May 2025 and is now under review in the State Assembly. It’s part of a broader legislative trend targeting so-called “junk fees” and aims to eliminate or restrict many fees that landlords commonly charge.
Fees Targeted by SB 681
- Application and Screening Fees – even those currently capped under existing law
- Convenience Fees – for credit card or online rent payments
- Administrative or Lease Setup Fees – for onboarding tenants, processing leases, or document prep
- Pass-Through Service Fees – like trash collection, pest control, or landscaping when not bundled into rent
- Any Other “Junk Fees” – unclear or unitemized charges that aren’t directly tied to base rent
If SB 681 passes, landlords would need to either eliminate these fees or include them in the advertised monthly rent.
Why This Bill Is Gaining Momentum
Supporters of SB 681 say it’s about fairness and transparency:
- Tenants often feel surprised by add-on fees after signing a lease
- Housing affordability is top-of-mind for lawmakers — and small monthly fees can add up fast
This bill builds on the national conversation around banning “junk fees” in industries ranging from banking to airlines — and now, housing.
How Landlords Should Prepare Now
Even though SB 681 hasn’t become law yet, it could go into effect as soon as January 2026. That leaves a short window to clean house on your lease agreements and fee policies.
Recommended Actions
- Audit Your Lease Line-by-Line
Look for any fee not labeled explicitly as “rent.” These are the most likely to be banned or challenged later. - Improve Fee Transparency
Even if the law doesn’t pass, renters increasingly expect clear, upfront pricing. List and explain every charge in listings, lease drafts, and welcome packets. - Monitor the Timeline
If passed, SB 681 may have a tight implementation window. Don’t wait until the last minute to make adjustments.
The Bigger Picture: Fees, Revenue, and Risk
If you manage multiple units, losing $25–$50 per month in pass-through or convenience fees adds up quickly. But continuing to charge those fees without legal clarity? That could cost you even more in the long run.
Now is the time to:
- Restructure how you recover costs
- Adjust your rent pricing if needed
- Train staff and update documentation
Stay Compliant with Good Life
Good Life Property Management helps landlords stay compliant, profitable, and protected — even as the laws change. We’ve helped hundreds of owners reduce legal risk while keeping their properties running smoothly.
Schedule a consultation today and let us help you get ahead of California’s changing rental laws.
Frequently Asked Questions About SB 681
1. Is SB 681 already law?
No, it passed the Senate in May 2025 and is now under review in the Assembly.
2. What types of fees would SB 681 ban?
Application/screening fees, credit card or online payment fees, lease setup charges, and some service pass-through fees.
3. Can I still charge tenants for trash or pest control?
Only if clearly disclosed and bundled into rent. Unitemized service pass-throughs may be at risk.
4. What if I keep charging these fees?
If the bill passes, charging prohibited fees could lead to legal complaints or penalties. Landlords should prepare now to avoid issues later.
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