California Rental Law Updates 2025: Key Changes for Landlords

The rental landscape in California is shifting again in 2025. With a fresh batch of legislation rolling out, landlords across the state—especially in markets like Redding, Anderson, and Shasta Lake—are facing new obligations, risks, and opportunities.

Whether you own a single rental home or manage a portfolio of units, these changes matter. From lock-change mandates and contractor thresholds to expanded rent caps and eviction timeline changes, there's a lot on the table.

We've broken it down in plain English so you know what's changing, who it affects, and what to do next.

🔑 AB 12: Say Goodbye to Big Security Deposits

Effective Date: July 1, 2024

The Big Change:

AB 12 limits the amount landlords can collect for a security deposit to one month's rent, regardless of whether the unit is furnished or unfurnished.

Who It Affects:

• All California landlords
• Especially owners of higher-end or furnished units where two months deposit was standard

Why It Matters:

For landlords accustomed to asking for two months' rent (or more), this limits upfront protection. It means screening tenants becomes even more important to mitigate risk, and move-out inspections need to be thorough and well-documented.

What You Should Do:

• Review your lease templates and remove outdated deposit language
• Adjust your risk strategy (e.g., increased screening, requiring renters insurance)
• Educate your staff or leasing agents to avoid compliance slip-ups

🏠 SB 721: Balcony & Deck Inspections Expanded

Effective Date: January 1, 2025

The Big Change:

Mandatory inspections for exterior elevated elements (balconies, decks, walkways, etc.) now apply to multifamily buildings with 3+ units.

Who It Affects:

• Owners of multifamily properties with elevated structures
• Property managers responsible for code compliance

Why It Matters:

Failure to comply can lead to safety risks, civil liability, and hefty penalties. This is not just about liability — it's about tenant safety.

What You Should Do:

• Schedule your required inspection by a licensed structural engineer or architect
• Budget for necessary repairs and keep detailed records
• Proactively communicate with tenants about timelines and safety

🔐 SB 1051: Lock-Change Protections for Survivors of Violence

Effective Date: January 1, 2025

The Big Change:

Expands and clarifies a landlord's responsibility to change locks within 24 hours when a tenant (or their household member) submits a valid request due to domestic violence, abuse, or threat.

Who It Affects:

• All residential landlords and property managers

Why It Matters:

• Landlords are now explicitly responsible for covering the cost of the lock change
• Tenants may perform the lock change themselves if the landlord fails to do so and must be reimbursed
• New documentation standards make it easier for tenants to qualify

What You Should Do:

• Create a lock-change policy and train your maintenance vendors
• Review internal response times and adjust procedures
• Update tenant notices and intake forms with compliant language

🪛 AB 2622: Higher Threshold for Unlicensed Repairs

Effective Date: January 1, 2025

The Big Change:

Raises the limit on what homeowners and landlords can pay for unlicensed contractor work from $500 to $1,000 per project (including labor and materials).

Who It Affects:

• Small property owners, particularly those who self-manage (DIY landlords)

Why It Matters:

This gives landlords more flexibility to handle minor repairs without hiring a licensed contractor, which can save time and money. But it also increases the risk of using unqualified labor, so use this freedom wisely.

What You Should Do:

• Maintain clear records of all minor repairs
• Vet even unlicensed workers carefully
• Understand when permits and inspections are still required

📅 SB 436: Pay-or-Quit Notice Extended to 14 Days

Status: Pending (but gaining traction)

The Proposed Change:

SB 436 would extend the standard 3-day notice to pay or quit to 14 calendar days before an eviction for nonpayment of rent could be filed.

Who It Would Affect:

• All residential landlords
• Particularly small operators who rely on timely rent payments

Why It Matters:

This change would slow the eviction process dramatically and increase the financial burden on all property owners who may have to wait up to a month or more to begin resolving a nonpayment issue.

What You Should Do (If It Passes):

• Review your eviction process and plan for longer resolution times
• Evaluate how this could affect your cash flow
• Prepare internal documentation to comply with new notice forms

🔥 SB 522: Rent Caps on Rebuilt Housing

Status: In Progress

The Proposed Change:

Would remove the exemption from rent caps for newly rebuilt housing after a natural disaster, meaning units rebuilt after wildfires or floods would be immediately subject to rent control.

Who It Would Affect:

• Landlords rebuilding after disaster-related property damage

Why It Matters:

This bill could disincentivize rebuilding altogether, especially in areas like Shasta County, where fire risk is high. It may also make it harder to finance reconstruction due to limited rental income potential.

What You Should Do:

• Stay involved in advocacy and call your local legislators
• Consult with insurance and legal advisors about implications
• Document all reconstruction timelines, costs, and rent decisions

✅ Wrap Up

2025 is bringing major changes for California rental property owners. From deposit caps and safety regulations to rent control and eviction timelines, staying informed is critical.

Whether you're self-managing or using a property management company in Redding, understanding these updates can help you stay compliant, reduce risk, and protect your investment.

If you have questions about how these laws affect your rental, Authority Property Management is here to help!