The California Apartment Association is reminding its members of two new requirements that will kick in on April 1 related to positive rent reporting and security deposits.
New rent reporting law (AB 2747)
Effective April 1, 2025, AB 2747 requires many landlords to give tenants the option to have their on-time rent payments reported to at least one credit bureau. The law applies to all properties with 16 or more units (except for those subject to a similar law for certain assisted housing developments—see the paper linked below). It also applies to properties with 15 or fewer units if there is corporate ownership and the owner owns more than one residential rental property.
For tenancies beginning on or after April 1, 2025, the offer must be made at the time the rental or lease agreement is entered into. For existing tenants (i.e., those with rental or lease agreements entered into before April 1, 2025), the offer must be provided by April 1, 2025.
- To include the rent reporting offer in a new or renewal rental agreement use: Offer of Positive Rental Payment Information Reporting Addendum.
- To make the offer to existing tenants by April 1, 2025, use: Notice of Offer of Positive Rental Payment Information Reporting.
For more information, please see CAA’s detailed paper about the rent reporting requirements, which includes a list of companies offering rent reporting services and information about reporting requirements for assisted housing developments: Rent Reporting Obligations.
New security deposit law (AB 2801)
AB 2801 makes a few different changes to the security deposit law, the most significant being the requirement to take photographs at various times and to provide the photos with the security deposit disposition. The applicability of the photo requirement is phased in with the first effective date fast approaching. Effective April 1, 2025, landlords must take both:
- Pre-repair/cleaning move out photos: For all tenancies (regardless of start date), the landlord must take photos within a reasonable time after the unit is returned to the landlord, but prior to any repairs or cleaning work is done; and
- Post-repair/cleaning photos: For all tenancies (regardless of start date), the landlord must take photos within a reasonable time after repairs or cleanings are completed.
Additionally, effective April 1, 2025, if a deduction is made for repairs or cleaning, then the photographs must be included in the itemized disposition – in addition to the bills, invoices, or receipts that are also required to be provided.
CAA’s Itemized Disposition of Security Deposit (Form CA-290) has been redesigned to facilitate compliance with new photo requirements and other changes to the security deposit law.
CAA’s Waiver of Right To Receive Documentation With Itemized Disposition of Security Deposit (Form CA-292) clarifies that a tenant’s waiver of documentation also applies to required photos.
For more information, please see Industry Insight: Security Deposit Collection and Return, which has been updated to cover all of AB 2801’s new requirements, including the photograph requirement.