Pasadena Housing Providers

Families Housing Families

STATE REGULATIONS FOR 2025


There are some important new California laws coming into effect this year and we want you to be aware.


Highlights include:


Security Deposit Photographic Documentation (AB 2801)

Later this year, housing providers must photograph rental units at move-in, and before and after cleaning and / or repairs at move-out. These photos must be supplied to tenants as part of the itemized statement for returning a security deposit.


Application / Screening Fees (AB 2493)

From now on, if you charge a screening fee, you must either accept the first completed application which meets your written criteria for rental, or alternatively give a full refund of fees to any rejected applicants. You must also provide screening reports to any applicants who paid.


Reporting Rent Payments to Credit Agencies (AB 2747)

From April 1st, some housing providers must offer tenants the option of having on-time rent payments reported to credit agencies. This law applies if you have 16 or more units, and may also apply if you have more than one building, subject to ownership status.


Protections for Domestic Violence Victims (SB 1051)

Protections for victims and survivors of domestic violence have been expanded. One significant change is that you must change the locks of survivors and their families within 24 hours of a request, at your expense.


Some of these regulations are complex and carry serious consequences if you fail to comply. We urge you to get professional advice if you are unsure of your responsibilities and to consult with your apartment association of choice. As an example, the California Apartment Association has provided an excellent review of new legislation, and the option of a paid webinar.



INTEREST ON SECURITY DEPOSITS


The unelected and unaccountable Pasadena Rental Board decided that landlords must now pay interest on security deposits. The interest rate for last year is 0.41%, so a tenant with a $1500 deposit will receive a whopping $6.15. Tenants who moved in or out during 2024 are owed a pro-rated amount.


Payment is by check or rent reduction only. NO ELECTRONIC PAYMENT IS ALLOWED. We highly recommend that you do not reduce the rent as a means of paying your tenant the interest owed. This could create an accounting headache, and in some cases a tenant might misunderstand and assume their rent has been reduced permanently.


We at Pasadena Housing Providers feel that this pointless exercise is designed to inconvenience landlords and provide grounds for a "Gotcha" over non-compliance in any future litigation, especially as many Pasadena landlords are elderly and manage their properties on their own.


You need to make this payment by the end of January.


We hope to have a calculator for you to figure interest amounts owed on our next blast next weekend.


Thank you,


Pasadena Housing Providers


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www.PasadenaHousingProviders.com

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All advice is presented on a best-endeavors basis.

Please consult your own attorney.