California's Assembly Bill 2801, effective in 2025, introduces significant changes to the state's landlord-tenant laws regarding security deposits. The law, designed to enhance transparency and ensure fair practices, provides a sense of security for tenants when landlords deduct a tenant's deposit.
In this article we will provide you with key insight into AB2801 so that you know how it will affect your rental business.
Understanding AB 2801
Photographic Documentation:
Landlords must photograph rental units at three critical points: immediately before the tenancy begins, after tenants vacate, before any cleaning or repairs, and after post-repair or cleaning. These photographs and the itemized statement detailing deductions provide a clear understanding of property conditions and deductions, instilling confidence in landlords.
Deductions and Itemized Statements:
AB 2801 limits deductions from security deposits to amounts necessary to restore the property to its original condition, excluding ordinary wear and tear. Professional cleaning charges are only permissible if they are essential to returning the unit to its move-in condition.
Under AB 2801, landlords must send tenants the itemized statement of deductions, photographs, and written explanations within 21 days of their move-out date. This deadline is crucial as it allows tenants to plan their finances and ensures timely communication between landlords and tenants.
Tenant Protections:
The law reinforces tenants' rights to request an initial inspection before vacating the property. Any claims for damages obscured during this inspection due to tenant belongings are still permissible.
Penalties for Non-Compliance:
AB 2801 includes strict penalties for landlords who fail to comply with the documentation and deduction rules in bad faith. Such landlords are prohibited from making any claims against the security deposit. This provision is a deterrent, discouraging landlords from acting in bad faith and protecting tenants' rights.
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