Key Changes in California Landlord Tenant Laws for 2025: What Property Owners Need to Know
Navigating California's landlord tenant laws can feel like a full-time job for property owners. As we move into 2025, several key changes are coming that will impact how you manage your rental properties, handle tenant communications, and protect your investments. Staying informed can help you avoid costly mistakes and keep your properties compliant while focusing on maximizing your returns.
As a property management company serving the Inland Empire, Realicore stays on top of these changes so our clients don’t have to stress about compliance issues. Here’s what you need to know for 2025.
1. Extended Rent Caps and Rent Control Updates
California's statewide rent cap laws under AB 1482 are extending with updated guidelines. For 2025, allowable annual rent increases will remain tied to inflation, with a cap of 5% plus the local CPI, not to exceed 10%.
Property owners in areas like San Bernardino and Redlands should review their current lease agreements to ensure compliance, especially if managing multifamily properties.
For further details on the current rent cap law, visit California Legislative Information.
2. New Tenant Screening Restrictions
Starting January 2025, new restrictions will limit the use of certain screening criteria. Specifically:
Credit checks will have additional requirements for transparency.
Restrictions on denying applicants based solely on prior evictions are expanding.
These changes are designed to reduce housing discrimination and expand housing opportunities. As a property management partner, Realicore ensures your tenant screening processes stay compliant while protecting your investment. Learn more about fair housing guidelines from the California Department of Fair Employment and Housing.
3. Mandatory Rent Payment Options
A new 2025 law will require landlords to offer at least one form of electronic rent payment in addition to traditional payment methods. This means you must be prepared to accept online payments, Zelle, or other digital payment systems unless a tenant requests otherwise.
If you’re still collecting only checks, this is the time to modernize your processes. We assist owners in cities like Riverside and Yucaipa with seamless digital payment setups to improve cash flow and reduce late payments.
4. Updated Security Deposit Laws
California’s 2025 updates will limit security deposits to one month’s rent for both furnished and unfurnished units, reducing the previous allowance of two months for unfurnished and three months for furnished units. This aims to improve housing affordability for tenants but requires property owners to adjust their leasing and accounting procedures.
For owners, this makes proper tenant screening and proactive property maintenance even more critical. If you haven’t yet, review your security deposit processes to align with these new guidelines and protect your properties from unnecessary risk.
Why Staying Current Matters
Understanding these landlord tenant laws changes is key to avoiding disputes, costly fines, and tenant turnover. By partnering with a proactive property management company, you can ensure your properties remain compliant while maximizing your investment returns.
At Realicore, we focus on protecting your investment while providing a seamless experience for both owners and tenants. Our commitment to technology, clear communication, and compliance is what sets us apart.
If you’re interested in learning more about effective management strategies, check out our article on How to Decide If You Should Sell or Lease Your Property and our overview on What Every Property Owner Should Know About Their Management Agreement.
For a deeper dive into California housing law updates, you can also reference this California Courts Landlord-Tenant Overview as a reliable, up-to-date legal resource.
Let Us Handle Compliance for You
Managing rental property in California comes with complexities, but you don’t have to navigate these changes alone. Our team at Realicore helps property owners throughout the Inland Empire stay compliant while focusing on maximizing their returns.
Contact us today to learn how our property management services can help you stay ahead of California’s evolving landlord tenant laws while preserving your peace of mind.
