Our team just returned from the 2025 California National Association of Property Managers Conference where we spent 3 days training, learning and listening. One of the biggest things we takeaway from this conference is making sure we are up to date on incoming legislation that affects our owners and our tenants. Property managers and landlords across Escondido and North County San Diego need to be prepared for major legislative changes taking effect in 2025. From new rules on security deposits and screening fees to laws protecting tenants and regulating credit reporting, these updates significantly impact how we manage rental properties.
Below is a summary of the most important bills and trends you need to know to stay compliant and avoid costly penalties.
📄 AB 2493 – Rental Application Screening Fees
This law tightens rules around collecting application fees. Landlords must now choose between:
Option 1: First-Come, First-Qualified
Only charge a fee if you process applications in the order they’re received and based on written, pre-provided rental criteria.Option 2: Fee Refund for Denials
If you deny an applicant, you must return their screening fee, regardless of the reason, within 7 to 30 days after tenant selection.
Additional Requirement:
Landlords are now required to send a copy of the applicant's credit report within 7 days of obtaining it—even if the applicant doesn’t ask. It can be delivered by mail, email, or in person.
🧾 SB 267 – Section 8 and Screening Criteria
If a tenant uses a Section 8 voucher or other rental assistance, landlords may not use credit history as a basis for denial. You must evaluate other factors such as rental history, income stability, and references.
🏠 AB 2801 – Security Deposit Deductions + Photo Documentation
Starting April 1, 2025:
All deductions from the security deposit must be detailed and specific. For example, "kitchen cleaned" isn't enough—you will need to state what was cleaned and why (e.g., “scraped grease off cabinets”).
Landlords must include before-and-after photos for all damages or cleaning costs claimed.
Photos can be sent via email or link—no special permission required.
Starting July 1, 2025:
Landlords are required to take photos before the tenant moves in to document the unit's condition.
For every future issue that may arise at the property, you're required to document the original, damaged, and repaired condition.
You must keep a record of who took the photos, when, and their role in your company.
💰 SB 611 – Fee Restrictions & Military Deposit Transparency
Landlords may not charge tenants a fee for paying rent by check or serving legal notices.
Beginning April 1, 2025, if you charge military members a higher deposit than advertised, you must disclose it and return the conditional deposit within 6 months if the tenant is in good standing.
🔎 AB 2747 – Optional Credit Reporting for Tenants
If you're renting out your single family home, the good news is you're most likely exempt from this one (find the conditions for exemption HERE)! But if you own a multi-unit property or more than 2 single-family rental units you now have to offer positive credit reporting, and it comes with these conditions:
- Tenants must opt in and be re-offered the option annually.
You must disclose 8 details including fees, how to opt in/out, and where credit is reported.
You cannot evict, deduct from the deposit, or cover unpaid fees with rent.
If unpaid for 30+ days, credit reporting must stop, and the tenant can't rejoin for 6 months.
⏱ AB 2347 – Unlawful Detainer Response Time
Increases tenant response time to eviction filings from 5 to 10 days.
Courts must now hear responsive pleadings within 5–7 court days, which may delay proceedings.
🧰 AB 2622 – Maintenance + Contractor Oversight
AB 2622 – If work exceeds $1,000, a licensed contractor must approve and document it.
🌡 One to watch: AB 2684 – Extreme Heat Response
In response to increasing climate risks, this bill designates extreme heat as a natural disaster. By 2028, landlords may be required to install or upgrade AC systems in affected areas. Knowing this may be coming down the line can help you to make smart investments at your rental property and save you money down the road.
🧼 Junk Fees and Fee Disclosures
A huge theme we are seeing: California is cracking down on “junk fees.” Landlords must:
Clearly disclose all utility charges and service fees up front.
Eliminate hidden or surprise costs from lease agreements.
🔍 What This Means for Escondido & North County Property Managers
These changes are substantial and signal California's continued push for tenant protection, transparency, and fairness. As a property manager in Escondido or greater North County, now’s the time to:
Update your leasing policies and procedures
Review your application and fee handling workflows
Train your team on photo documentation and deposit accounting
Consult legal counsel or a property management advisor as needed. Good news: we know some people! Call use at 760-400-9989 if you have any questions regarding these upcoming changes or to see if hiring a professional property manager can help.
