Select New State Laws Impacting Rental Housing

The California Legislature and Governor Newsom have finalized the following new state laws:

• Additional 5-Day Response to Unlawful Detainer: Assembly Bill 2347* – Extends the time tenants have to respond to an unlawful detainer (eviction) complaint from 5-to-10 days.
• Limitation on Charging Applicant Screening Fees: Assembly Bill 2493 – Allows a landlord to charge an application screening fee only if a landlord considers and approves applicants in the order completed applications are received, and also prohibits charging an application screening fee unless the applicant is actually considered. Further, the new law prohibits charging an applicant a screening fee when no unit is available for rent or not likely to become available for rent within a reasonable period of time. The new law also creates an obligation on the part of the housing provider to furnish copy of screening report to applicant within 7-days (e.g., this obligation to furnish the applicant with a copy of the screening report is no longer upon request).
• Delayed Deadline for Balcony and EEE Inspections: Assembly Bill 2579 - This bill amends 2019’s Senate Bill 721, and extends the deadline for the first balcony and exterior elevated element (EEE) inspection by one-year to January 1, 2026. This bill was sponsored by the Apartment Association of Greater Los Angeles.
• Positive Payment Credit Reporting: Assembly Bill 2747* – This new law requires reporting of positive (only) rental payments to at least one major credit bureau. Under this new law, housing providers are required to offer positive rental payment reporting to tenants every 12-months, and tenants may “opt-out” at anytime, but tenants are then not be allowed to “opt-in” again for 6-months. Further, the new law allows housing providers to charge tenants the lesser of actual costs or up to $10 per month if they incur costs to report positive rental payments. The law exempts all buildings with 15 or fewer units from this reporting requirement.
• Cleaning Fees and Security Deposit Deductions: Assembly Bill 2801* – This new law limits a housing provider’s claims for deductions against a tenant’s security deposit to items that are not “normal wear and tear” and requires the taking of photographs upon commencement of tenancy and end of tenancy of all items requiring repair and cleaning, and then photographs to show repairs were actually made.
• Commercial Tenant Protections: Senate Bill 1103 – This new law protects qualified commercial (business) tenants by requiring that commercial landlords provide notice of rent increases. The new law further imposes civil penalties for failure to comply.

More details regarding these and other new laws impacting rental housing providers will be forthcoming in an upcoming issue of Apartment Age Magazine.