New California landlord-tenant laws will impact how landlords and property managers handle security deposits, including documentation and notification requirements. Rentec Direct’s property management software helps California landlords remain compliant with security deposit regulations.
California landlords are experiencing new regulations impacting rental housing in 2025. Assembly Bill 2801 (AB 2801) introduces new requirements for how landlords handle security deposits, especially when it comes to documentation and transparency.
Another new California landlord-tenant law for 2025 includes requirements for rent payment credit reporting.
If you manage rental properties in California, it’s important to understand what this new law means and how tools like Rentec Direct can help you stay compliant and protect your business.
What is AB 2801? California’s Security Deposit Law
Signed into law in 2024 and taking effect in 2025, AB 2801 outlines stricter rules for deducting from a tenant’s security deposit and mandates photo documentation at key stages of the tenancy.
Here’s a quick breakdown of the most important changes:
Details for Housing Providers in AB 2801
1. Limited Deductions from Security Deposits
Landlords can still deduct for things like damage or unpaid rent, but deductions must be reasonable and well-documented. Routine or cosmetic cleaning (like automatic carpet cleaning) can no longer be deducted unless absolutely necessary.
2. Mandatory Photo Documentation
Landlords must take photos of the rental unit:
- Before move-in (for leases starting July 1, 2025 or later)
- After move-out, but before repairs or cleaning
- After repairs or cleaning are completed
These images must be shared with the tenant, along with an itemized statement that clearly explains any deductions made.
3. Initial Inspection Opportunity for Tenants
Tenants must be notified in writing that they have the right to request a pre-move-out inspection. This gives them a chance to fix issues before deductions are made.
How Rentec Direct Helps with Security Deposit Compliance
Meeting these new requirements might feel overwhelming—but it doesn’t have to be with Rentec Direct. Our powerful integration with zInspector makes it easy to automate documentation for every step of your move-in and move-out process.
Inspection Tools Built for Compliance
- Convenient Inspections: By your team or invite one or all tenants of a unit to complete an inspection through zInspector from a phone or tablet
- Auto notifications for completed inspections: Quick Access links on the Summary page of Rentec Direct let you know when an inspection has been submitted
- Time-stamped Photo Capture: Take and store required photos before move-in, after move-out, before and after-repairs, directly from your mobile device.
- Customizable Inspection Templates: Use ready-made templates that align with California’s inspection standards.
- Tenant Communication Made Easy: Share photos and itemized statements with tenants through Rentec Direct’s Tenant Portal.
- Secure Cloud Storage: Keep a complete record of inspections, notes, and photos in one place, easily accessible for attaching to posted expenses for an itemized security deposit statement if questions or disputes arise.
Through the Rentec Direct and zInspector integration, your Rentec properties will automatically sync with your zInspector account, eliminating double entry. Inspection reports completed in zInspector will automatically upload to your Rentec account, allowing you to share reports with your tenants to review in their portal.
By using Rentec Direct and zInspector together, you’ll save time, reduce risk, and ensure full compliance with AB 2801.
Final Thoughts
California’s AB 2801 aims to increase transparency in the rental process and protect both landlords and tenants. With Rentec Direct’s digital property management tools and zInspector integration, you can meet these new requirements with confidence.
Want to learn more about using zInspector and Rentec Direct? We’re always happy to help, simply email us at success@rentecdirect.com or give us a call at (800) 881-5139.