AB 2801: Tenancy: security deposits.

Existing law regulates the terms and conditions of residential tenancies, including limitations on the demanding or receiving of security, as defined, from a tenant and charging amounts against the tenant or the security. Existing law limits the landlords claim of the security to only those amounts as are reasonably necessary for specified purposes, including, but not limited to, the repair of damages to the premises, exclusive of ordinary wear and tear, caused by the tenant or by a guest or licensee of the tenant, and the cleaning of the premises upon the termination of the tenancy necessary to return the unit to the same level of cleanliness it was in at the inception of the tenancy.

Existing law prohibits a landlord from asserting a claim against the tenant or the security for damages to the premises or any defective conditions that preexisted the tenancy, for ordinary wear and tear or the effects thereof, or for the cumulative effects of ordinary wear and tear occurring during any one or more tenancies.

This bill would limit claims against the tenant or the security for materials or supplies and for work performed by a contractor, the landlord, or the landlords 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. The bill would also prohibit a landlord from requiring a tenant to pay for, or asserting a claim against the tenant or the security for, professional carpet cleaning or other professional cleaning services, unless reasonably necessary to return the premises to the condition that it was in at the inception of the tenancy, exclusive of ordinary wear and tear.

Existing law requires the landlord to notify, within a reasonable time after notification of either partys intention to terminate the tenancy or before the end of the lease term, the tenant in writing of the tenants option to request an initial inspection and of the tenants right to be present at the inspection. Existing law sets forth procedures for requesting the inspection and requires the landlord to give the tenant an itemized statement specifying repairs or cleanings that are proposed to be the basis of any deductions from the security, as specified. Existing law provides that the initial inspection and related requirements do not prevent a landlord from using the security for specified purposes that occur between completion of the initial inspection and termination of the tenancy or that were not identified during the initial inspection due to the presence of a tenants possessions.

This bill would instead provide that the initial inspection and related requirements do not prevent a landlord from using the security for specified purposes that occur between completion of initial inspection and when possession of the unit is returned to the landlord or that were not identified during the initial inspection due to the tenants possessions. The bill would also prohibit the landlord from using the security for deductions for repairs or cleanings that are not identified in the itemized statement, if an initial inspection is conducted and, at the time of inspection, the premises do not contain tenant possessions that prevent the landlord from identifying repairs or cleanings due to the presence of those possessions.

Existing law requires, no later than 21 calendar days after the tenant has vacated the premises, but not earlier than a specified time, the landlord to furnish the tenant an itemized statement indicating the basis for, and the amount of, any security received and the disposition of the security, and to return any remaining portion of the security to the tenant. Existing law requires the itemized statement to be accompanied by copies of documents showing charges incurred and deducted by the landlord to repair or clean the premises, including a copy of the bill, invoice, or receipt for materials or supplies deductions.

This bill would require, for tenancies that begin on or after July 1, 2025, a landlord to take photographs of the unit immediately before, or at the inception of, the tenancy. The bill would also require, beginning April 1, 2025, the landlord to take photographs of the unit within a reasonable time after possession of the unit is returned to the landlord, but prior to any repairs or cleanings for which the landlord will make deduction from or claim against the security deposit, as described, and within a reasonable time after such repairs or cleanings are completed. The bill would additionally require the landlord to provide, as described, these 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 would make other nonsubstantive changes.

This bill would incorporate additional changes to Section 1950.5 of the Civil Code proposed by SB 611 to be operative only if this bill and SB 611 are enacted and this bill is enacted last.