Navigating California’s 2025 Landlord-Tenant Laws: Key Updates for El Dorado Hills, Folsom, and Rancho Cordova Property Owners

As we step into 2025, California landlords must stay informed about the evolving legal landscape surrounding rental properties. Several new landlord-tenant laws have come into effect, directly impacting property owners in El Dorado Hills, Folsom, Rancho Cordova, and the surrounding areas. Staying compliant isn’t just about adhering to regulations—it’s about safeguarding your rental business from potential liabilities.

Here’s a breakdown of key 2025 legislative changes, their implications, and how you can ensure compliance while maintaining a smooth rental operation.

AB 2493: Enhanced Tenant Screening Protections

Effective January 1, 2025, AB 2493 strengthens tenant protections related to background checks. Landlords must:

• Disclose screening criteria upfront in rental applications.
• Provide tenants with a written explanation if they are denied housing due to their screening report, and provide a copy of the applicant’s credit report whether they are asked for it or not.
• Landlords must provide a receipt for their application fee that includes the costs of processing the application.
• If landlord employs a “first come first served” policy, they must refund applicants that were not considered (no more charging in advance). If multiple applications were received and charged, the applications that were not considered must be refunded within 7 days.
• If a landlord continues to use a “strongest applicant” policy, they must refund every denied applicant regardless of the reason.
• Landlords can keep an application fee IF:

1. Completed applications must be considered in the order they are received
2. Landlords provide screening criteria in writing up front, with the application
3. The first approved applicant who meets the criteria is approved for tenancy
4. Applicants are not charged an application fee unless they are actually considered

Implications for landlords: While a “strongest applicant” policy allows a landlord to select a tenant with the best criteria, it opens up liability for fair housing and discrimination complaints from applicants. While filing such a complaint takes some effort on the applicant’s part, there are tenant advocacy groups that will assist with this and these claims are becoming more common. Abiding by a “first come first serve” policy may save a landlord from a costly complaint.

AB 2801: Changes to Security Deposit Returns

AB 2801 requires that Landlords take photos of the condition of property before a tenant moves in, after they move out, and additionally keep before/after photos of any work done with security deposit funds. Landlords have 21 days to return the security deposit, including an itemized statement indicating the basis for, and the amount of, any funds from the deposit used to restore the property to its condition at the beginning of the tenancy.

Furthermore, AB 2801 prohibits automatic charges for cleaning and/or carpet cleaning unless those charges are necessary to restore the property to its condition at the beginning of the tenancy. Language regarding automatic cleaning fees need to be removed from the lease agreement.

Implications for landlords: While having before/after photos has always been a best practice, it has never been codified into law. AB 2801 changes that beginning April 1, 2025. That documentation is critical between each new tenancy as well.

SB 611: Three Changes for California Landlords

SB 611 creates three primary changes that landlords in the Folsom and surrounding areas need to abide by:

1. Landlords cannot charge tenants for preparing and serving termination notices.
2. Landlords must allow tenants to pay rent and security deposits in a least one form other than cash or electronic funds transfer.
3. Any security over 1x the rent to a military service member must explain why the Landlord required the additional protection. Any amount in security deposit over 1 month’s rent must be refunded within 6 months if the tenant has paid on time

AB 2347: Unlawful Detainer (Eviction) Process

This new law extends the amount of time that tenants have to respond to an eviction complaint.

• Tenants now have 10 business days (up from 5) to respond to an eviction complaint.
• Timelines can be expedited for certain tenant motions like demurrers.

The link to the civil code can be found here.

AB 2622: $500 Limit for Unlicensed Contractor Work Raised from $500 to $1000

Under AB 2622 a persona who is not licensed pursuant to the contractors licensing law may advertise for construction work or a work of improvement as long as the aggregate contract price for labor, material and all other items on a project or undertaking is less than $1,000, as long as the person states in their advertisement that they are not licensed as a contractor.

AB 2747: Requires Landlords to Offer Credit Reporting

Landlords are required to offer each tenant the option of having the tenant’s positive rental payment information reported to at least one nationwide consumer reporting agency. Furthermore, a landlord may charge a tenant the lesser of $10 per month or the actual cost to the landlord to provide this service. Click here to see the Assembly Bill.

Exemptions: Exemptions include any landlord of a residential rental building that contains 15 or fewer dwelling units, unless that landlord owns more than one residential rental building and is either a REIT, a corporation, or a limited liability company with at least one member corporation.

SB 1051: Expands the Law Regarding the Landlord’s Duty to Change the Locks Upon Request of a Victim of Abuse

Under existing law when a tenant is a victim of abuse, the landlord must change the locks upon written request within 24 hours after receiving the appropriate documentation (including a court order excluding the alleged person from the dwelling, if they are a tenant along with the abused). In addition, SB 1051 adds the following responsibilities to the landlord:

• Landlord to bear the costs for changing the locks. If the landlord does not change the locks within 24 hours of the written notice, the tenant may do so without the landlord’s permission. The landlord is to reimburse the tenant within 21 days.
• Expands protections to immediate family or household members of a tenant, who is the victim of abuse or violence.
• Expands range of documentation that qualifies to include documentation from a qualified third party acting in their professional capacity. Additionally, acceptable supporting documentation substantiating the lock-change request includes any other form of documentation that reasonably verifies that the abuse has occurred.
• Tenant Screening: Prohibits landlords from taking adverse action towards an applicant due to a background of being a victim of abuse or violence.

How These Laws Impact Landlords in El Dorado Hills, Folsom, and Rancho Cordova

These laws emphasize tenant rights, transparency, and fairness. For landlords, they require more diligence, proactive communication, and streamlined processes to avoid fines, lawsuits, or tenant disputes.

If you own rental property in areas like El Dorado Hills, Folsom, or Rancho Cordova, staying updated on these regulations is crucial. Non-compliance can lead to hefty fines and legal battles, both of which can erode your rental’s profitability.

Why Hire a Professional Property Manager?

Navigating California’s complex landlord-tenant laws can be overwhelming. This is where hiring a property manager becomes invaluable. At Keyrenter Folsom Property Management, we:

• Stay up to date on ever-changing state and local regulations.
• Handle tenant screening, security deposit management, and rent increases with legal precision.
• Maintain your property’s habitability standards through regular inspections and swift repairs.
• Reduce your liability by ensuring compliance with all landlord-tenant laws.

By partnering with us, you can focus on the financial growth of your rental property while leaving the legal complexities to seasoned professionals.

Ready to Simplify Property Management?

Managing rental properties doesn’t have to be stressful. Let Keyrenter Folsom help you navigate the latest regulations, minimize risks, and keep your tenants happy. Contact us today to learn how we can support your rental property in El Dorado Hills, Folsom, Rancho Cordova, and beyond.