"With the full implementation of Assembly Bill 2801 (AB 2801) now in effect as of July 1, 2025, the rules governing security deposits have undergone significant enhancements aimed at promoting transparency and fairness. Signed into law by Governor Newsom on September 19, 2024, this bill amends Civil Code Section 1950.5 and introduces mandatory photographic documentation requirements that could fundamentally alter how you handle move-ins, move-outs, and deposit dispositions."
"Prior to this law, landlords could itemize charges based on written descriptions or invoices, but tenants often challenged these as subjective or unsubstantiated-especially when claims involved "normal wear and tear" versus actual damage. The new requirements under AB 2801 mandate visual evidence, reducing ambiguity and empowering both parties with concrete proof of the condition of the unit at the time of move in and move out. By requiring "reasonably necessary" deductions only and prohibiting automatic fees (like routine carpet cleaning), the law encourages proactive documentation. Failure to comply in "bad faith" could bar you from withholding any portion of the deposit, potentially exposing you to penalties or lawsuits."
AB 2801 amends Civil Code Section 1950.5 and takes effect July 1, 2025, requiring mandatory photographic documentation at move-in and move-out. The law restricts security deposit deductions to only those that are reasonably necessary and prohibits automatic fees such as routine carpet cleaning. Landlords must provide clear, itemized evidence tied to invoices and visual proof to reduce disputes over normal wear and tear versus damage. Noncompliance in bad faith can bar withholding any deposit portion and expose landlords to penalties or lawsuits. Property managers should update procedures, train staff, and implement secure photo storage and timing protocols to ensure compliance.
Read at Bay Area Real Estate Law Blog
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