Big changes for landlords have officially taken effect this April. Two major California laws—AB 2747 and AB 2801—are now in place, affecting rent reporting and how you document security deposit deductions.
These new requirements are easy to miss, but the penalties for non-compliance could lead to costly disputes or fines. Here’s what every landlord should know—and what steps you can take now to stay ahead.
For more information on how to protect your Orange County rental properties, reach out to our Good Life Property Management team. Whether you need an Irvine rental property manager, Anaheim property management company, or Huntington Beach real estate manager, our team helps landlords stay compliant while keeping their investments profitable.
Key Takeaways
If you own qualifying properties, you must now offer tenants the option to report on-time rent payments to credit bureaus.
You’re also required to photograph and share move-in/move-out property conditions when keeping part of a tenant’s deposit.
Rent reporting laws apply mostly to larger or corporate-owned buildings.
New documentation requirements for deposits aim to reduce disputes and increase transparency.
These laws are now in effect, and landlords should review leases, processes, and systems ASAP.
Table of Contents
AB 2747: Mandatory Rent Payment Reporting
What it is:
If you own certain types of properties, you’re now required to give tenants the option to report their rent payments to at least one nationwide credit bureau.
Who it affects:
- Landlords with 16 or more units
- Corporate landlords (e.g., REITs, LLCs, or corporations) who own more than one property, even if each one has 15 or fewer units
How it works:
- For existing leases, tenants must be offered the option by April 1, 2025
- For new leases signed on or after April 1, 2025, the option must be offered at signing and then annually
- Tenants can be charged a fee of up to $10/month, or the actual cost—whichever is less
- If a tenant opts out, they must wait 6 months to opt back in
AB 2801: Enhanced Security Deposit Documentation
What it is:
To withhold funds from a tenant’s security deposit, you must now take photo documentation and share it with the tenant alongside your itemized deductions.
When it applies:
- April 1, 2025: Landlords must take move-out photos
- July 1, 2025: Applies to move-in documentation for new tenancies
What to document:
- Condition before move-in
- Condition after move-out, before repairs
- Post-repair photos showing what was done
Photos must be date-stamped and can be delivered via:
- Flash drive
- A link to a secure viewing site
Want a deeper dive into this law? Read our full breakdown: California AB 2801 Security Deposit Laws for Landlords
How to Stay Compliant
To avoid tenant disputes or legal risk, you’ll want to:
- Audit your lease templates and add required clauses and notices.
- Train your team on new documentation and communication standards.
- Use cloud-based tools for organizing and timestamping photo evidence.
- Inform tenants proactively, especially those renewing leases this year.
Manage Your Rental Properties with Confidence
Whether you’re reviewing leases, adjusting tenant communications, or reworking your deposit procedures, staying compliant with California’s latest rental laws is key to protecting your property—and your peace of mind. Working with a property management company can help ensure you don’t miss critical deadlines or details that could lead to costly penalties.
At Good Life, we believe life should be enjoyed, not spent sweating the small stuff. That’s why we set out to make property management easy. We service all of Orange County, ensuring landlords in every city receive expert support. Whether you need a Fullerton property management expert, Costa Mesa rental management company, or Newport Beach property manager, our team is here to help. We care about you, your property, and your tenant. And we do it all so you can Live the Good Life.
Schedule a call to speak with one of our Good Life experts.
FAQs About AB 2747 and AB 2801
Do I have to offer rent payment reporting for every property I own?
Not necessarily. AB 2747 applies to landlords with 16 or more units, or those who own multiple properties as a corporation, LLC, or REIT, even if the properties are smaller. If you own a single-family rental or a small property as an individual, you may be exempt.
Can I charge tenants for the rent reporting service?
Yes. You’re allowed to charge up to $10 per month, or the actual cost of the service, whichever is lower. You must clearly disclose this to the tenant.
What kind of photos are required under AB 2801?
You must take date-stamped photos before move-in (starting July 1, 2025), after move-out (starting April 1, 2025), and after repairs or cleaning are complete—especially if you’re deducting from the tenant’s deposit.
How do I deliver security deposit photos to tenants?
You can send them by mail, email, flash drive, or provide a secure link to view the photos online. These must accompany your itemized list of deductions.
What happens if I don’t comply with these new laws?
Failure to comply with AB 2747 or AB 2801 could lead to legal disputes, tenant complaints, or financial penalties, so it’s important to update your lease terms and documentation practices now.
Steve Welty
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