There will always be essential updates when it comes to understanding landlord-tenant laws in California. It is the nature of our state; to continue updating the requirements and regulations around things such as security deposits, rent stabilization, and eviction protocols. This underscores the need for professional property management in Palm Springs and throughout California. We are constantly watching the laws and updating lease agreements, processes, and systems in order to keep our landlords, investors, and rental properties in full compliance. Here’s a look at some of the legal updates that are getting the most attention in California now.
Updates to Tenant Screening and Application Fees
Tenant screening has always come with specific laws, particularly fair housing laws that prohibit discrimination. Now, the law is impacting application fees and how they’re collected. With the passage of AB 2493, which became effective January 1, 2025, landlords and property managers can only charge an application screening fee when applications are accepted in the order in which they are received. That means that the first application to meet the screening criteria must be approved in order to justify the collection of that application fee. This law also requires that you or your property manager provide the screening criteria to the applicant in writing when the application is requested.
Reporting Rents to Credit Bureaus
In an effort to help renters build up their credit, AB 2747 requires that rental property owners offer tenants the option of having their positive rental payment information reported to at least one nationwide consumer reporting agency. This is not mandatory, but you must make the offer. This must be offered to tenants when you sign the lease for those leases that begin on and after April 1, 2025. Then, landlords must make the offer at least once annually, ideally during the lease renewal negotiations. For existing leases, as of Jan. 1, 2025, the offer of positive rental payment information reporting must be made no later than April 1, 2025, and at least once annually thereafter.When tenants do request this reporting, owners can charge tenants a fee to cover actual costs of reporting their on-time rental payments. This charge cannot exceed $10 each month, and it must go towards the cost of reporting the positive rental payments. The exemptions to this law are as follows: it does not apply to owners of a residential rental building that contains 15 or fewer dwelling units, unless both of the following apply:
- The landlord owns more than one residential rental building, (number of units in each building does not matter); and,
- The landlord is a real estate investment trust, a corporation, or a limited liability company in which at least one member is a corporation.
The popularity of this is yet to be seen. We’ll be watching how many tenants are willing to pay for the privilege of having their on-time rents reported to the credit bureaus. The good news is this might incentivize tenants to pay their rent on time.
Security Deposit and Required Unit Photos
As Palm Springs property managers, we’ve always been detailed about taking photos during move-in and move-out inspections. Now, it’s even more important. A new law requires landlords who collect a security deposit to take photographs of the unit at three separate points before and after a tenancy:
- Immediately before the tenants move in, or at the start of a new tenancy.
- Within a reasonable time after the lease term ends and the unit is returned to the landlord, but prior to any repairs or cleaning.
- Within a reasonable time after repairs or cleaning are completed.
You’ll be required to provide these photographs to your departing tenant. Beginning April 1, 2025, the landlord must take photographs of the unit within a reasonable time after the rental home is returned to the landlord. For tenancies that begin on or after July 1, 2025, you will have to take photographs of the unit immediately before, or at the start of, the tenancy.
Expanded Eviction Protections in California
By now, every landlord in California is familiar with just cause eviction laws. New legislation has now given tenants extra time to respond to an eviction proceeding that has made its way to the courts. This law, AB 2347 went into effect on January 1, 2025. Instead of having five business days to respond to an eviction notice, or a Summons and Complaint, tenants will now have 10 days to respond. The law also clarifies the timeline for filing motions to strike the complaint, which is now between five and seven days after receiving notice. Default evictions occur when tenants do not respond to the unlawful detainer lawsuit. This new bill will prevent those evictions and give tenants more time to access legal help or prepare a defense to the pending eviction. While this seems like it’s only going to make the eviction process longer for owners who are trying to remove a tenant, it’s possible that this law will streamline eviction cases. That’s because it also allows oral arguments in the form of objections and replies rather than written complaints and oppositions. Also, hearings will need to be conducted within seven days unless there’s a good cause for an extension of time.
Updated Habitability Laws
Enforcement is becoming more important under California’s Implied Warranty of Habitability.The enforcement is up to local jurisdictions. So, if the city of Palm Springs receives a habitability complaint, they’re required to investigate, even if it seems frivolous. Make sure your tenants have no reason to believe you’re not keeping up with your maintenance responsibilities. 
This is hardly a complete list of laws in California’s rental market, but it’s a solid introduction to some of the most important landlord-tenant updates that you need to know in order to protect yourself and your property. If you need help with your Palm Springs rental property laws, we’d love to talk about it. We’d also be happy to share some of the best ways to make sure you can easily remain in compliance. Please contact us at Xepco Properties.
