Understanding AB 2801

California Assembly Bill 2801 (AB 2801), signed into law on September 19, 2024,

introduces significant reforms to security deposit practices in residential tenancies.

These changes, effective in 2025, aim to enhance transparency and fairness in landlord-tenant relationships.

🔍 Key Provisions of AB 2801

1. Limits on Security Deposit Deductions

Landlords are restricted to deducting only those costs from a tenant's security deposit that are reasonably necessary to restore the rental unit to its condition at the start of the tenancy, excluding normal wear and tear. This includes expenses for professional cleaning services. Additionally, landlords cannot charge for professional carpet cleaning unless it's essential to return the unit to its original state.

2. Mandatory Photographic Documentation

To provide evidence of any deductions, landlords must provide photographic evidence:

• Before Tenancy: Photos taken immediately before or at the start of the tenancy (required for tenancies beginning on or after July 1, 2025).
• After Move-Out, Before Repairs: Photos taken within a reasonable time after the tenant vacates but before any repairs or cleaning commence (effective April 1, 2025).
• After Repairs/Cleaning: Photos taken after completing any repairs or cleaning, showings proof of the work performed.

These images, along with an itemized statement and explanations of charges, must be provided to the tenant within 21-days of vacating the premises.

3. Penalties for Non-Compliance

For landlords that fail to adhere to these requirements, such as not providing necessary documentation or acting in bad faith, prohibits them from making any deductions against the tenant's security deposit. Landlords can also be subject to statutory damages, which can be up to three times the security deposit amount, plus actual damages, costs associated with enforcement, and other incurred costs.

🏘️ Implications for Landlords and Tenants

For Landlords:

• Documentation: Implement a procedure for photographing units at the specified times.
• Transparency: Ensure clear communication with tenants regarding their rights and any deductions made.
• Compliance: Adhere strictly to the timelines and documentation requirements to avoid forfeiting the right to claim deductions.

For Tenants:

• Awareness: Understand your rights concerning move-out inspections and the conditions under which deductions can be made.
• Engagement: Request and participate in the initial inspection to address potential issues proactively.
• Documentation: Retain copies of all communications and documentation provided by the landlord for your records.

📅 Implementation Timeline

• April 1, 2025: Landlords must begin taking post-move-out, pre-repair photographs.
• July 1, 2025: Requirement for pre-tenancy photographs becomes effective for new tenancies.

Landlords, are the new regulations of AB 2801 causing you stress? California Oaks Property Management is here to help. Contact our office at (805) 648-1851 to discuss how our professional property management services can assist you in complying with AB 2801.