California’s rental law AB 2801 is changing how residential rental managers interact with residents.
AB 2801 introduces new and stricter rules around security deposits, requiring documenting property conditions before, during, and after a tenant moves out. While this is more work for local leasing teams, it is also an opportunity to streamline processes and build more trust with tenants. Let’s break down what’s changing and then how Tracker can make compliance much easier.
What is AB 2801 All About?
AB 2801 tightens the rules on security deposit deductions, requiring landlords to provide solid proof for any charges. Every deduction for a repair, maintenance, or damage-related cost must now be backed by clear evidence. The goal? To ensure fairness, reduce disputes, and make the process more transparent for everyone involved.
Here’s what you need to know:
- More Documentation: High-resolution, date-stamped photos are now required at every stage, before a tenant moves in, immediately after they move out, and before any repairs are made.
- Itemized Charges: An itemized statement outlining all deductions is required, making it harder for landlords to make vague or unfair deductions.
- Faster Communications: All documentation must be sent to tenants within 21 days of move-out, and landlords should keep records for at least three years to avoid legal issues.
- No More Automatic Carpet Cleaning Charges: Landlords can no longer automatically charge for professional carpet cleaning unless the damage goes beyond normal wear and tear, and any deductions for materials or repairs must be reasonable and necessary.
- Special rules for military tenants: Landlords must ensure any extra deposits are clearly explained upfront and refunded after six months of consistent rent payments.
What’s Actually Changing in 2025?
Starting April 1st, 2025, landlords must take photos of the unit after the tenant moves out and before any cleaning or repairs happen. These date-stamped photos and the itemized statement explaining any deductions must be sent to the tenant within 21 days after the tenant has moved out.
For leases starting on or after July 1st, 2025, landlords must also take photos before the tenant moves in. All other aspects of the law also go into effect on July 1st.
Here’s the kicker: If you don’t follow these steps, tenants can take you to small claims court for 3 times the security deposit amount in addition to actual damages!
For landlords who still fail to comply, the penalties can be severe. These include:
- Loss of the right to claim – Landlords forfeit their ability to deduct any amount from the tenant’s deposit without the required photos and documentation.
- Statutory damages – Non-compliant landlords may be required to pay up to three times the security deposit amount in addition to actual damages.
- Legal disputes and financial liability – Tenants can challenge deductions made without proper photographic evidence, leading to costly legal battles that landlords are unlikely to win.
- Additional costs – Landlords could also be on the hook for additional costs, such as legal fees and enforcement expenses, if a tenant takes action against them.
- The burden of proof – In any dispute over security deposit deductions, landlords must provide clear, verifiable evidence to justify their claims. Without proper documentation, winning these disputes becomes nearly impossible.
With these strict penalties in place, it is clear this isn’t optional, it’s essential. Failing to comply with AB 2801 can quickly become a costly mistake.
Why This Puts More Pressure on Property Managers
Let’s be honest: keeping track of all these new requirements can feel overwhelming. Traditional inspections rely on manual notes, scattered photos, and subjective opinions, leaving room for error.
If a tenant disputes a charge, proving your case could become a logistical and financial nightmare. Compliance became even more time-consuming for those still using traditional inspection methods with the added requirement of date-stamped photos and three years of record-keeping.
How Tracker Makes Compliance Easy
This is precisely why we built Tracker. Our AI-powered property inspection tool removes the hassle of documentation, so you can stay compliant without extra stress.
Here’s how Tracker helps:
- Instant, High-Quality Inspections: Tracker collects high-resolution, date-stamped photos and automatically generates reports detailing the property’s condition—before and after move-in. There is no guesswork and no missing files.
- Accurate Record-Keeping: Tracker securely stores all inspection data, so you always have a digital paper trail if a dispute arises for years to come.
- More Transparency, Less Conflict: With clear visual proof, tenants can see precisely why deductions were made, reducing frustration and legal disputes.
- Save Time & Stay Compliant: Instead of juggling photos, spreadsheets, and paperwork, Tracker generates reports that keep everything in one place, making compliance with AB 2801 effortless.
- Easily Share Reports: Tracker lets you send documentation both internally and externally with just the click of a button.
The Bottom Line
AB 2801 adds another regulatory hurdle, but the right tools can make compliance easier.
Tracker helps property managers document everything seamlessly, keeping you compliant, protecting your business, and making the security deposit process smoother for everyone.
Ready to see how easy compliance can be? Download Tracker today and simplify your inspections once and for all.
