Reminder A.B. 2801 - New Security Deposit Requirement Effective July 1st
Reminder A.B. 2801 - New Security Deposit Requirement Effective July 1st
Effective April 1, 2025, California Assembly Bill 2801 (AB 2801) introduced important changes to how residential property managers handle the disposition of security deposits, move-in and move-out inspections, and tenant communication. Now, effective July 1, 2025, this new law went into full effect.
What the Law Requires
As of April 1, 2025, the first phase of A.B. 2801, landlords must take and store photographs (or video) of a rental unit immediately after a tenant vacates — before repairs or cleaning. In addition, a second set of photographs (or video) is also required once repairs or cleaning services are completed, especially if deductions from the security deposit are to be taken.
Now, under the second phase of A.B. 2801, for all new leases commencing on or after July 1, 2025, landlords must take and store third set of photographs showing the property's condition prior to tenant occupancy. Then, landlords must also take and store photographs of a rental unit immediately after a tenant vacates before repairs or cleaning of the unit, and another set of photographs (or video) as evidence that repairs were made and/or cleaning services are completed, especially if deductions from the security deposit are to be taken.
The law also tightens what can be deducted from a tenant’s deposit. Only necessary expenses to restore the property to its original condition, excluding normal “wear and tear” are allowed. Routine cleaning or cosmetic repairs must be justified with photographic evidence and documentation of costs incurred (e.g., invoices, etc.). In addition, landlords are prohibited from including automatic, fixed cleaning costs in their rental agreements as such automatic carpet cleaning upon vacancy is an example of a security deposit deduction that is no longer allowed.
Under A.B. 2801, tenants have the right to request an initial inspection before moving out, giving them the opportunity to address any issues and avoid deductions. Landlords must inform tenants of this right in writing – the Apartment Association of Greater Los Angeles has a form landlords can use to provide this notification (See Form E.22).
Within 21 days of move-out, landlords must provide to tenants an itemized breakdown of deductions, supported by photo evidence from before, during, and after the tenancy. However, this evidence may not be sent to tenants earlier than either of the following: (i) the date notice is provided to terminate the tenancy or (ii) 60 calendar days prior to the expiration of a fixed-term lease.
Best Practices for AB 2801 Compliance
Property managers and landlords can more easily stay in compliance with the requirements of A.B. 2801 by following these practices suggested by software provider Inspection Express (See: https://ipropertyexpress.com/):
“Before Move-In: (i) Conduct a thorough property inspection using photos or 360° virtual tours, (ii) Complete a condition report with detailed notes and timestamped images, and (iii) Share the report with tenants upfront to establish clear expectations.
During Tenancy: (i) Log any maintenance or incidents with photos and written records, and (ii) Use an organized, centralized system to store reports and communications.
Pre-Move-Out: (i) Offer and complete a pre-move-out inspection if the tenant requests it, (ii) Use side-by-side photo comparisons to show any changes since move-in, and (iii) Share a summary report to help tenants resolve issues before the final inspection.
Post-Move-Out: (i) Inspect the property before any repairs or cleaning begin and document the condition, (ii) Provide a final, itemized statement with before-and-after photos to justify deductions, and (iii) Securely store all reports and documentation for future reference or disputes. When followed consistently, these steps can reduce the risk of disagreements, improve transparency, and protect both landlords and tenants.”