A New Era for Move-In/Move-Out Procedures.
Tenants and Landlords here is everything you need to know about new
property inspection laws.
What does the implementation of California’s Assembly Bill (AB) 2801
mean?
Here are the main 2 changes:
1.) Incoming and outgoing inspection requirements
2.) Security deposit calculations
Looking ahead to 2025, California’s Assembly Bill (AB) 2801 is set to
ensure fairness and transparency in security deposit management. How
you wonder? By simply introducing new property inspection requirements.
This change includes mandatory photographic documentation, and turning
property inspection apps, like SnapInspect – from a luxury into an industry
standard. Advanced and user-friendly inspection solutions are going to be a
real game-changer with these new law implementations, and here is why.
Under the new law, landlords must capture photos of rental units both
before and after any repairs or cleaning. For tenancies beginning July 1st,
this requirement will take effect before a tenant moves in, making
photographic documentation a standard part of recording security deposit
deductions.
There are some stand-out benefits to this operational update, such as
increased transparency between all parties and introducing objective
documentation. Capturing images and following a robust checklist during
inspections is made simple and easy with a premium inspection solution.
The photographs provide clear and real-time evidence of a unit’s condition
which will ultimately reduce misunderstandings between tenants and
landlords. A picture is worth a thousand words, right? In this case, the
picture may just be worth a thousand dollars, too.
Additionally, the use of visual records streamlines dispute resolution,
quickly settling any disagreements regarding the condition of the unit while
saving time and legal costs. The best practice, undeniably, for conducting
these incoming and outgoing inspections will be to utilize an advanced
property inspection app. One compelling benefit that SnapInspect offers is
the ability to consolidate all inspection documentation and images in a
centralized platform. Your inspection data is guaranteed to be stored safely
and securely for an unlimited time period. Additionally, everything is well-
organized—reports, images, and agreements are easily accessible when
needed, and the software’s advanced features make sharing between
individuals or teams effortless.
By standardizing these practices, both landlords and tenants benefit from
consistent, fair treatment, and increased accountability.
Here’s a more detailed explanation of the key changes with the
implementation of AB 2801
Mandatory Photo Documentation:
Before Move-In (for tenancies starting July 1, 2025, or later):
Landlords and property managers must photograph the unit immediately
before a tenant moves in.
Before and After Repairs/Cleaning (effective April 1, 2025):
Landlords must photograph the unit or home after the tenant moves out.
This must be done before any repairs or cleaning commence. Then, it is
documented again after the work is completed.
Purpose: These photos must be provided to the outgoing tenant along
with the security deposit disposition form, showing exactly what the
security deposit deductions are for.
Restrictions on Security Deposit Deductions:
Landlords can only deduct from a security deposit for necessary repairs to
restore the unit to its original condition. General wear and tear are no
longer on the bill… This will not be deducted from the security deposit.
There will be limits on security deposit claims meaning landlords cannot
deduct the cost of professional carpet cleaning or other cleaning services
unless such cleaning is necessary to restore the unit to its original
condition.
Itemized Statements:
Landlords must provide tenants with an itemized statement detailing any
deductions from the security deposit, along with the required photos.
Photographs and Documentation:
In addition to the itemized statement, the property owner must also provide
the tenant with photos of the property from both before the tenant moves in
and after they move out. That is a requirement if the landlord intends to
charge them for repairs or cleaning.
If a landlord fails to follow these rules, they cannot legally make a claim
against the tenant’s security deposit.
Tenants’ Rights:
Tenants have the right to request to be present during move-out
inspections. If tenants would like to physically be present during a move-in
inspection, this is now possible.
What will be the Penalties for Non-Compliance?
Landlords who fail to comply with these security deposit rules could face
legal action.
Governor Newsom signed a mountain of new housing laws into state law,
with much of those regulations directly impacting landlords and tenants in
the state.
Let’s Dive deeper into what the AB 2801 Will Change:
AB2801 hones in on deductions you can make from a tenant’s security
deposit and how you communicate these charges to them at the stage of a
move-out.
It is important to note that this portion of the law is optional on the tenant’s
part. If the tenant waived their right to be present for a move-out inspection,
then you don’t have to conduct an inspection before the move-out.
However, it is still legally required for you to provide a written notice to the
tenant of their right to request an initial inspection “within a reasonable
time” before the end of the lease agreement. These inspections must occur
no earlier than 2 weeks before the end of the lease term.
This bill will officially take effect as law in 2025 and be rolled out in phases:
- Beginning April 1st, 2025, landlords are required to take photographs
of the unit after the tenant moves out but before any repairs or
cleanings are done on the unit. The tenant must receive the pictures,
along with an itemized statement and a detailed explanation of any
security deposit charges, within a reasonable timeframe. - July 1st, 2025: For any tenancies that begin on or after July 1st, the
landlord must also take photos of the unit right before the tenancy
begins.
What is considered Normal Wear and Tear vs. Tenant-
Caused Damage
If you don’t follow these new rules with security deposits, you cannot make
any deductions, no matter the state of the unit.
Whether it be for a portion of the security deposit or the entire thing, you
will not have a defense in small claims court if you can’t prove you followed
the law. Having a fail-safe property inspection software to generate detailed
reports and capture your inspections accurately is more critical now than
ever before. It could be what saves you from a trip to the small claims
court, after all.
Wear-and-tear can be a little subjective from person to person, and tenants
may claim something that was due to negligence is expected deterioration.
Common examples of standard deterioration include worn carpets in high-
traffic areas or minor scratches on laminate floors due to everyday use.
This does not include things like broken windows, pet stains in the carpet,
or broken door hinges.
101 crash course on how to document damage
Being thorough with your documentation will be imperative for the proper
handling of security deposits. AB2801 will just make it a legal requirement.
When capturing the condition of your property, you have to make sure that
the photos and notes that you take show every physical aspect of the unit.
Having a customizable checklist prebuilt into a property inspection app like
SnapInspect – eliminates the risk of human error and ensures nothing is
missed.
Pro Tip: While not required by law, it may be beneficial to inform the tenant
of the results of your move-in inspection as well, that way they know and
see the condition of everything before moving in.
As for photo documentation, make sure you use high-quality photographs
so that all details are captured and visible. Referencing back to these
images becomes incredibly valuable and with the right inspection software,
you will have a high-quality image produced in your final reporting.
Next Steps To Success…
AB2801 emphasizes the need for thorough documentation by California
landlords in 2025. To reach new heights in property management, you need
to adapt and recalibrate your strategies. Capitalize on new systems and
leverage evolving laws. It’s about growing your business, refining your
processes, and elevating your approach.
Using cutting-edge technological tools to achieve your dream outcomes,
means you are truly working smart. Investing in an inspection software will
make all the difference over the next few months of this new law roll-out.
