California Assembly Bill 2801, which becomes operative in 2025, changes some of the residential security deposit rules under California law through amendments to California Civil Code section 1950.5. The bill was intended to clarify and limit the charges landlords can deduct from a tenant’s security deposit and outlines the required documentation necessary for lawful deductions of such charges.  Here are the bill’s key provisions:

Inspection Rights

The bill reinforces tenants’ rights to request an initial inspection before moving out and receive an itemized statement of proposed deductions.  AB 2801 also makes some changes regarding the initial inspection. Under the new law, a landlord can use the security deposit for valid reasons for items that were not identified during the initial inspection due to the tenant’s possessions being in the way during the initial inspection.

Itemized Statement Requirements

Existing law requires the landlord to furnish an itemized statement no later than 21 calendar days after the tenant has vacated the premises.  The itemized statement must indicate the basis for, and the amount of, any security received and the disposition of the security.  Any portion remaining must be returned to the tenant at that time. 

Under AB 2801, Landlords can only deduct amounts necessary to restore the premises to the condition it was in at the start of the tenancy, excluding ordinary wear and tear. Landlords cannot charge tenants for professional carpet cleaning or other professional cleaning services unless it is necessary to return the premises to its original condition.

For tenancies beginning on or after July 25, 2025, the bill requires that the landlord take photographs of the unit immediately before, or at the inception of, the tenancy. The bill would also require the landlord to take photographs of the unit within a reasonable time after possession of the unit is returned to the landlord, but before any repairs or cleanings charges are made, and within a reasonable time after such repairs or cleanings are completed. The bill would additionally require the landlord to provide the photographs along with and at the same time the itemized statement is sent, along with a written explanation of the cost of the allowable repairs or cleanings. The bill would prohibit the landlord from making a claim against the tenant or the security if the landlord, in bad faith, fails to comply with these itemized statement requirements.

This bill also limits claims against the tenant or the security for materials or supplies and for work performed by a contractor, the landlord, or the landlord’s employee to the amount necessary to restore the premises back to the condition it was in at the inception of the tenancy, exclusive of ordinary wear and tear.

Please contact Lynx Legal with any questions regarding the new security deposit rules, and for all your eviction needs.  We can be reached at 888-441-2355 or [email protected].  Our experiences team is standing by to answer any inquiries or take your order if you are ready to start a case.