Key Legislative Updates for California Property Owners in 2025

Anthony A. Luna • December 1, 2024

What Property Owners Need to Know Before 2025

As 2025 approaches, California is rolling out new real estate laws that could significantly impact property owners managing multifamily housing and commercial properties. These updates focus on tenant rights, fair practices, and transparency. Staying ahead of these changes isn’t just about avoiding fines—it’s about building trust with tenants and running your properties smoothly.


Here’s a straightforward breakdown of the most important 2025 real estate law changes in California and what steps you should take to prepare.


AB 2801: New Security Deposit Rules

Starting April 1, 2025, security deposit rules are getting stricter. You’ll now need to take photos of rental units at three key times:

  1. Before the tenant moves in (for leases starting after July 1, 2025).
  2. After the tenant moves out but before repairs or cleaning begin.
  3. After any repairs or cleaning have been completed.


These photos, along with an itemized list of any deductions, must be shared with the tenant when returning their security deposit. Only costs that are “reasonably necessary” can be deducted, and normal wear and tear cannot be charged.


How to Prepare:

  • Get Organized: Set up a system for taking and storing photos of your units.
  • Review Your Policies: Reassess what counts as a valid deduction to avoid tenant disputes.
  • Train Your Team: Make sure property managers know how to follow these rules during inspections.
  • Update Your Leases: Add details about the new photo documentation process so tenants know what to expect.


This change not only helps you comply with the law but also protects you in case of disputes with tenants over deductions.


AB 2747: Offering Rent Payment Reporting to Tenants

Starting January 1, 2025, landlords with 15 or more units will need to offer tenants the option to report their rent payments to credit bureaus. This gives tenants the chance to build or improve their credit scores by making on-time payments.


Key Details:

  • You can charge a small fee for this service, but it’s capped at $10 per month or your actual costs.
  • Tenants can opt in or out of the program at any time.
  • You must inform new tenants about this option when they sign their lease and remind existing tenants about it at least once a year.


How to Prepare:

  • Find a Reporting Service: Partner with a credit bureau or a third-party vendor to handle payment reporting.
  • Update Your Lease Agreements: Include information about this new option so tenants are aware of it upfront.
  • Train Your Team: Make sure staff can explain the program and its benefits to tenants.
  • Communicate Effectively: Promote the benefits of rent payment reporting, such as helping tenants build their credit.


Offering rent payment reporting is not just about compliance—it’s also a way to show tenants you care about their financial well-being.


SB 611: Fee Limits and Protections for Service Members

Starting July 1, 2025, SB 611 places limits on fees landlords can charge tenants and introduces protections for service members.


Key Changes:

  • No More Extra Fees for Paying Rent by Check: You can’t charge tenants extra if they choose to pay their rent with a check.
  • No Fees for Notices: You can’t charge tenants for serving termination notices, like a “pay or quit” notice.
  • Refunding Extra Security Deposits for Service Members: If you collect an additional security deposit from a service member due to credit concerns, you must refund that extra amount after six months as long as the tenant has no payment issues.


How to Prepare:

  1. Review Your Fee Policies: Eliminate any charges that will no longer be allowed.
  2. Adjust Security Deposit Procedures: Make sure your system accounts for refunding extra deposits for service members after six months.
  3. Communicate Clearly: Update your lease agreements and make sure your staff knows about these changes to avoid confusion.


By following these rules, you’ll stay compliant and create a fairer process for all tenants, especially those in the military.


AB 2493: Transparent Application Fee Practices

Starting January 1, 2025, application fees will come under stricter rules to ensure fairness and transparency for prospective tenants.


Key Details:

  • You can only charge an application fee if you know a unit is available or will be available soon.
  • If a fee is charged, you must provide the applicant with a copy of their credit report within 7 days.
  • Fees must be refunded if the application is not considered or if the unit is no longer available.


How to Prepare:

  • Simplify Your Process: Use software or tools to track fees, refunds, and credit report distribution.
  • Be Transparent: Clearly outline your screening process and refund policies for applicants.
  • Set Up a Refund System: Make sure refunds are processed quickly to avoid legal issues.
  • Train Your Staff: Ensure everyone understands how to follow these rules to create a smooth experience for applicants.


This law helps level the playing field for renters and ensures your application process is fair and compliant.


Why These Changes Matter

These 2025 real estate law changes in California emphasize transparency, fairness, and tenant protection. For property owners managing multifamily housing and commercial properties, these updates mean more responsibility—but also more opportunity to build trust and run your business more efficiently.


Staying compliant isn’t just about avoiding penalties. It’s about creating a better experience for tenants and protecting your reputation as a property owner.


How Property Owners Can Prepare

Here are some steps you can take now to get ahead of the 2025 changes:

  1. Audit Your Policies and Procedures: Review your lease agreements, fee policies, and tenant communication processes to ensure they comply with the new laws.
  2. Invest in Technology: Use tools to streamline documentation, rent payment tracking, and application management.
  3. Train Your Team: Educate property managers and staff on the upcoming changes so they can answer tenant questions and enforce new policies effectively.
  4. Communicate with Tenants: Be upfront about how these changes will benefit them, from credit-building opportunities to clearer application processes.
  5. Consult Legal Experts: Work with a real estate attorney to double-check that all your policies and procedures are up to date.


The 2025 real estate law changes in California, including AB 2801, AB 2747, SB 611, and AB 2493, bring new challenges and opportunities for property owners. By preparing now, you can ensure your properties comply with the law, protect your investments, and build stronger relationships with your tenants.


At Coastline Equity, we’re here to help you navigate these changes with confidence. From updating policies to training your team, we can provide the support you need to stay ahead.


Have questions about these updates? Contact us today to learn how we can help you prepare for 2025 and beyond.

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A property owner studying a detailed roadmap as a guide.

A Guide to 2025 Regulations for Property Owners

By Anthony A. Luna • January 7, 2025
Discover how property owners and investors can turn the 2025 property management regulations into opportunities for growth, tenant retention, and long-term success. Learn key updates and actionable strategies today.
A close-up of a credit card fee form, symbolizing transparency

AB 2493 Transparent Application Fee Practices

By Anthony A. Luna • December 5, 2024
Learn how California's AB 2493 improves transparency in rental application fees. Discover what landlords need to do to comply and enhance trust with applicants.
A service member in uniform saluting, symbolizing the protections and fee limits

SB 611 Fee Limits and Protections for Service Members

By Anthony A. Luna • December 4, 2024
Discover how California's SB 611 protects service members by limiting rental fees and enhancing compliance with the Servicemembers Civil Relief Act (SCRA). Learn your rights and responsibilities.
A property manager reviewing a paper copy of a credit report

AB 2747 Offering Rent Payment Reporting to Tenants

By Anthony A. Luna • December 3, 2024
Learn how California's AB 2747 requires landlords to offer rent payment reporting to credit bureaus. Discover the benefits, compliance steps, and impact on property management.
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News & Updates

What Is Fair Rent for My Property?

By John David Sarmiento • April 11, 2025
Setting the right rent isn’t just about earning income — it’s about finding the balance between maximizing cash flow and keeping your property consistently occupied. So, what exactly is fair rent for your property? Whether you're renting out a single-family home, an apartment, or a unit in a multi-family building, finding a fair rental price starts with a thoughtful look at your property, your market, and what today’s renters are willing to pay. Start with Comparable Rentals The best way to find a fair rent is to research comparable rentals in your area. Look for listings similar in: Square footage Number of bedrooms and bathrooms Neighborhood Condition and amenities Platforms like Zillow, Apartments.com, or Rent.com are a great place to browse rental listings and compare active prices. If you’re seeing similar units listed at a higher rate than yours — and they're still on the market weeks later — that could be a sign they’re overpriced. Units that rent fast tell you what renters are actually willing to pay. Real Example: Pricing a 2-Bedroom in Long Beach Let’s say you own a 2-bedroom, 1-bath apartment in Long Beach with around 900 square feet. You check listings and find similar properties renting for $2,300 to $2,500. Zillow shows a rent zestimate of $2,400 — a decent starting point, but not the full picture. After looking at how long listings have stayed active and talking to a local property manager , you find out that well-maintained units with in-unit laundry and parking are consistently getting rented at $2,350. You price your unit accordingly, giving yourself a competitive edge while still earning market value. Avoid Relying on Algorithms Alone Automated pricing tools like the rent zestimate are useful for a ballpark figure, but they often miss local demand shifts, recent upgrades, or what renters truly value in your neighborhood. Use them as one data point — not your final decision-maker. Other Factors That Influence Fair Rent Your final rent amount should reflect more than just comps. Consider: The property’s condition: Have you renovated or upgraded appliances recently? Extras included: Are you covering any utilities? Is there secure parking or outdoor space? Seasonality: Rental demand can vary throughout the year. Your goals: Are you focused on fast occupancy or maximizing revenue? Professional support: A trusted rental manager or property manager can offer current insights based on tenant activity, vacancy rates, and pricing trends.  How Property Managers Help You Set the Right Price If you're unsure what to charge, a local property manager can evaluate your unit, compare it to others in your area, and recommend a pricing strategy that balances demand and return. They also help adjust your price over time as rental rates shift, and they’ll guide you in attracting and retaining quality tenants who value both the price and the property. Final Thoughts So, what is fair rent for your property? It’s the price that matches what your unit offers, reflects the current market, and appeals to qualified renters. It’s not necessarily the highest number possible — it’s the one that helps you rent quickly, reduce turnover, and maintain steady income. With a little research, a realistic view of your property’s features, and guidance from local experts, you’ll be well-positioned to price your rental right — and keep it occupied with great tenants.

How to Increase Rent Without Losing Tenants

By John David Sarmiento • April 10, 2025
One of the most delicate parts of owning a rental property is figuring out how to increase the rent without driving away good tenants. While you want to stay competitive with market rates , it’s equally important to maintain stable occupancy and avoid costly turnovers. The good news? With the right strategy and timing, raising rent doesn’t have to come at the cost of your tenant relationships. 1. Know Your Local Market Rates Before you decide to raise the rent , research similar properties in your area to understand current rent prices . If you're significantly below market value, a reasonable increase is often accepted — especially by tenants who like where they live. Even if you're close to market rate, a small adjustment can still make sense if you’re offering added value like upgraded amenities, responsive maintenance, or flexible lease terms. 2. Time It Around Lease Renewals The best time to increase the rental rate is when a tenant is renewing the lease . This gives them the chance to consider the new rate and evaluate their options — all while avoiding the hassle and cost of moving. Be sure to send a formal rent increase notice with enough lead time, typically 30 to 60 days in advance, depending on local regulations. 3. Communicate the “Why” Clearly When increasing rent, communication is everything. Let your tenants know the reasons behind the increase: Rising property taxes or insurance Increases in maintenance or utility costs Alignment with market rates Planned improvements to the unit or building Even if they don’t love the change, most tenants are more receptive when they feel respected and informed. 4. Offer Options and Flexibility If you’re working with long-term tenants you’d like to keep, consider offering choices to soften the increase: Extend the lease at the current rate for a few more months Offer a discounted rate for early renewal Split the increase over two payments instead of one lump sum This approach shows that you're not just looking to raise the rent , but to build a fair and lasting relationship. 5. Lean on Your Property Manager (If You Have One) Experienced property managers can provide insight into local rent prices , craft professional communications, and help navigate lease renewals in a way that keeps tenants happy while protecting your bottom line. They can also deliver rent increase notices and handle pushback more objectively. If you manage your property on your own, consider consulting a manager or local expert before finalizing your approach. Final Thoughts Increasing the rental rate is a normal part of owning a rental property , but it should always be done with care and intention. When you base your decisions on market research, communicate transparently, and give tenants room to respond, you’re more likely to keep good renters in place — even at a higher price point.  Want help reviewing your current lease structure or market position before you raise the rent? We’re here to support you.

How to Find Tenants for My Rental Property

By John David Sarmiento • April 9, 2025
Finding the right tenant is one of the most important things you’ll do as a property owner. The right renter can mean steady income, fewer problems, and long-term stability — while the wrong one can lead to missed rent, damage, or legal headaches. So how do you actually find great tenants for your rental property? Here's a clear, step-by-step approach that works — whether you're a new landlord or a seasoned investor. 1. Write a Clear, Honest Rental Listing Start by crafting a listing that highlights what makes your property attractive, but also sets clear expectations. Good property descriptions should include: Rental price and lease length Number of bedrooms and bathrooms Location and amenities Any restrictions (pets, smoking, etc.) Post your listing on multiple rental listing sites — but don’t underestimate the power of rent signs in front of the property, especially if it's in a high-traffic area. 2. Market Where Your Ideal Tenants Are To reach more prospective tenants , take your marketing beyond listing sites. Post your property on social media , community groups, and even local forums. Word of mouth can also be powerful — let friends, colleagues, and neighbors know the unit is available. Make sure your contact information is easy to find and consistent across platforms. You want prospective renters to reach you quickly when interest is high. 3. Use a Standard Rental Application When potential tenants reach out, have a standard rental application ready to go. This not only helps you stay organized, but ensures you’re collecting all the info you’ll need for the next step — tenant screenings . A good application should request: Full name and contact details Employment and income information References and previous landlord contacts Authorization for a background check and credit score pull 4. Screen Tenants Thoroughly (and Legally) One of the most critical steps in finding good tenants is how you screen tenants . Don’t skip this part — it’s where most rental issues can be avoided. Effective tenant screenings usually include: Background check (criminal history, eviction records) Credit score and payment history Verification of employment and income Reference checks with their previous landlord Always follow housing laws when screening applicants. Be consistent, fair, and avoid any language or decisions that could be considered discriminatory under the Fair Housing Act. 5. Collect a Security Deposit and Finalize the Lease Once you’ve found a great tenant , collect a security deposit (within the limits set by your state), and have both parties sign a clear, legally binding lease agreement . Your lease should detail rent amounts, due dates, responsibilities, and procedures for repairs or disputes. If you're not sure how to draft one, consult with a landlord or property manager familiar with local rental laws. Final Thoughts Finding the right tenant takes more than just putting up a listing — it takes a clear strategy, legal awareness, and the ability to evaluate prospective tenants fairly and confidently. The effort you put in now saves time, money, and stress later.  If you're unsure or simply want to ensure a smooth process, working with a professional property management company can make tenant placement and lease compliance much easier.
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