California’s 2025 tenant-law update tightened security-deposit and screening-fee rules

Deposit deductions face added limits

California’s 2025 tenant-law changes included new requirements for security-deposit deductions, rental screening fees and positive rent-payment reporting. The Department of Real Estate’s guide identifies AB 2801, AB 2493 and AB 2747 among amendments passed in 2024 and taking effect in 2025. [1]

Under AB 2801, landlords must meet additional requirements before making deductions and face further limits on repair and cleaning costs. The DRE summary says a landlord who in bad faith fails to comply with legal requirements for returning a deposit is not entitled to deduct any amount from it. [1]

Screening fees depend on availability and process

AB 2493 limits when a landlord may collect an application screening fee. The DRE guide says the landlord must offer a screening process that meets specified legal requirements when collecting the fee, and may not collect one if the landlord or agent knows or should know that no unit is available at that time or within a reasonable period. [1]

The Civil Rights Department’s legislative summary describes two qualifying process options: consider applications in the order received, among other requirements, or refund the full fee to applicants not selected within the specified timeframe. The law also preserves the ability to accept a reusable tenant screening report. [2]

Rent reporting is an offer with conditions

AB 2747 requires covered landlords to offer tenants the option of having positive rental-payment information reported to at least one nationwide consumer reporting agency. For leases entered on or after April 1, 2025, the offer is due when the lease is made and at least annually afterward. For leases already in place on Jan. 1, 2025, the first offer was due by April 1, 2025, with annual offers after that. [2]

The tenant may choose to stop reporting in writing; after stopping, the tenant must wait at least six months before choosing reporting again. A landlord may charge the lower of the actual cost or $10 per month. The provision excludes buildings with 15 or fewer dwelling units unless specified conditions apply, and assisted housing developments. Reporting is an option and does not guarantee a particular credit-score result. [2]

Different rules affect different stages of renting

Together, the changes reach different points in a tenancy: screening fees during an application, positive payment reporting over time and deposit deductions when money is returned. The rent-reporting offer applies to covered landlords, while the screening-fee and deposit provisions address separate requirements. These statewide summaries describe the laws and their scope; application to an individual lease or dispute depends on its circumstances. [1] [2]