California landlords face two major compliance changes starting April 1, 2025. Assembly Bill 2747 requires certain property owners to offer tenants the option of positive rent reporting to credit bureaus, while Assembly Bill 2801 mandates photo documentation when deducting from security deposits. Both laws are designed to improve tenant transparency and reduce disputes, but they also create new responsibilities for landlords.
Key Takeaways
- AB 2747 (Positive Rent Reporting): Landlords of larger properties and corporate-owned rentals must offer tenants the option to report on-time rent payments to credit bureaus.
- AB 2801 (Security Deposits): Landlords must take pre-repair and post-repair photos when making deposit deductions, starting April 1, 2025.
- Fee Limits: Tenants can be charged a fee for rent reporting, capped at $10/month or actual cost.
- Annual Offers Required: Rent reporting offers must be made annually for all covered tenants.
- Risk of Non-Compliance: Landlords who fail to follow the photo or reporting requirements may lose legal claims to deposit deductions or face penalties.
Table of Contents
- What Changed on April 1, 2025—and Why It Matters
- AB 2747: Positive Rent Reporting—Scope and Requirements
- AB 2801: Security-Deposit Photos—Exactly What to Capture and Send
- Compliance Playbook: Step-by-Step for Landlords
- Edge Cases and FAQs
- Conclusion
What Changed on April 1, 2025—and Why It Matters
The state of California enacted AB 2747 and AB 2801 to increase fairness and accountability in the landlord-tenant relationship. Rent reporting gives tenants a chance to build credit through on-time payments, while mandatory photo documentation helps resolve disputes over deposit deductions. For landlords, the challenge is meeting these new compliance requirements without increasing liability or administrative burden.
AB 2747: Positive Rent Reporting—Scope and Requirements
Who is covered
- Landlords with more than 15 residential units
- Corporate owners (including LLCs with corporate members and REITs) who own more than one residential property, even if each property has fewer than 16 units.
Offer timing:
- New or renewal leases on or after April 1, 2025: The offer must be made when the lease is signed.
- Existing leases as of January 1, 2025: The offer must be provided no later than April 1, 2025.
- Annual requirement: All covered landlords must re-offer annually.
Offer details must include:
- Clear statement that rent reporting is optional.
- Name of credit bureau(s) used.
- Any tenant fee (if charged).
- Method to opt in or opt out.
Fee rules:
- Landlords may charge a fee for the service, capped at $10/month or the actual cost—whichever is lower.
- No fee is allowed if the landlord incurs no cost.
Tenant protections:
- Nonpayment of the reporting fee cannot be reported as a negative item, used as a basis for eviction, or deducted from the security deposit.
- Tenants who opt out cannot re-enroll for six months.
Operational impact:
To comply, landlords must either become certified data furnishers with credit bureaus or work with third-party rent reporting providers. Integrating this into leasing procedures will require updated addendums, annual reminders, and tracking systems.
AB 2801: Security-Deposit Photos—Exactly What to Capture and Send
Effective April 1, 2025, landlords must provide photographic evidence when making deductions from security deposits.
Requirements include:
- Move-out photos (pre-repair/cleaning): Taken immediately after the tenant vacates and before any work begins.
- Post-repair/cleaning photos: Taken after work is completed.
- Inclusion with disposition: Photos must be included alongside the itemized security deposit statement, invoices, and receipts.
Additional timeline:
- For tenancies beginning on or after July 1, 2025, landlords must also take move-in photos at the start of tenancy.
Delivery methods:
Landlords may provide documentation by mail, email, or secure digital link, but all materials must reach the tenant within 21 days of move-out.
Consequences for non-compliance:
Failure to provide photos when required can result in forfeiting the right to retain any portion of the deposit and may expose landlords to statutory damages of up to twice the deposit amount.
Compliance Playbook: Step-by-Step for Landlords
1. Audit Your Portfolio
- Identify properties covered by AB 2747.
- Track lease start dates to meet April 1 deadlines.
2. Update Lease Paperwork
– Add a rent reporting addendum to all new and renewal agreements.
– Draft a standardized tenant notice for existing leases.
3. Select Rent Reporting Method
- Partner with a third-party service or become a direct furnisher to bureaus.
- Train staff on enrollment and fee collection rules.
4. Create a Deposit Photo Policy
- Train staff on standardized pre- and post-repair photo documentation.
- Use time-stamped, organized files that can be easily shared.
5. Review Procedures Quarterly
- Conduct internal audits to ensure compliance.
- Keep updated checklists for both laws.
Edge Cases and FAQs
Do small landlords with only a few units have to comply with AB 2747?
Generally no, unless ownership is corporate and includes more than one residential property.
If I don’t make any deductions from the security deposit, do I still need photos?
The law requires photos only when deductions are made, but best practice is to always document the condition of the unit.
Can I charge tenants for the time it takes to provide deposit photos?
No. The requirement is part of the standard landlord obligation, not a billable service.
What if a tenant refuses rent reporting?
Participation is optional. If declined, the tenant cannot re-enroll for six months.
Conclusion
The April 1, 2025 deadline for AB 2747 positive rent reporting and AB 2801 security deposit photo requirements is a critical milestone for California landlords. By preparing now—updating leases, adopting reporting systems, and implementing photo documentation procedures—landlords can stay compliant, reduce risk, and protect their rental investments.