What you need to know about New California Security Deposit Laws and AB2801

As of 2025, California’s AB2801 is fully in effect, introducing new requirements for landlords regarding how security deposit deductions must be documented. If you're a rental property owner or manager, this law changes the way you handle move-in and move-out inspections, and failure to comply could mean forfeiting your right to withhold any portion of the deposit.

Here’s what you need to know to stay compliant.

Move-Out Documentation Requirements (Effective April 1, 2025):

If you intend to deduct any amount from a tenant’s security deposit, you are now required to document the condition of the property in a very specific way:

• You must take photos after the tenant vacates the property but before any cleaning or repairs are performed.

• These photos should clearly show the condition of the areas you plan to deduct for—such as damage, excessive dirt, or missing items.

• After the work is completed, you must take a second set of photos to show the result of the repair or cleaning.

• Both sets of photos must be provided to the tenant, along with the itemized list of deductions and invoices or receipts, all within the standard 21-day timeframe.

• If you skip these steps or fail to provide this documentation, you may lose your legal right to withhold funds from the deposit, or worse if bad faith is involved regardless of the condition of the property. Move-In Photo Documentation (Required for Leases Starting July 1, 2025 or Later) -

For any tenancy that begins on or after July 1, 2025, you must:

• Take clear, dated photos of the property’s condition before the tenant takes possession.

• Retain these photos in your records to serve as a baseline for assessing wear and damage at move-out.

• These move-in photos are part of the record used to justify any deductions, and they must be made available to the tenant upon request.

What You Should Be Doing Now:

• Update your move-in/move-out inspection procedures to include taking and storing high-quality photos.

• Establish a system for securely storing photo documentation and associating it with the relevant tenant file.

• Make sure your staff or vendors are trained to take pre-repair photos immediately after move-out, before any work is done.

• Include language in your lease agreements informing tenants of your documentation process.

• Ensure you’re prepared to send the full set of required materials to the tenant within 21 days of the lease ending—including photos, receipts, and the itemized deduction statement.

Important Clarifications:

• Deductions are still limited by existing law—you cannot charge for normal wear and tear, and you may only deduct for work that is necessary to restore the unit to its original condition.

• Charges for cleaning or carpet shampooing must be justified; they cannot be routine unless the condition warrants it.

AB2801 raises the bar for transparency and accountability, and that’s good for everyone—but only if landlords understand their responsibilities. If you're not already using a consistent inspection and documentation process, now is the time to implement one.

At Rentegic we're here to help. Feel free to reach out to discuss AB2801 and as always read the applicable laws to educate yourself on them. It's dry reading, but it's your business so staying compliant is critical to your success.

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal advice. I am not an attorney or legal professional. While I strive to ensure accuracy, the content may not reflect the most current legal developments, and it is not a substitute for legal counsel. You should consult a qualified attorney for advice regarding your specific situation. Use of this information does not create any attorney-client relationship and does not offer any guarantees, assurances, or protections from legal liability.