2025 Rental Law Updates: What LA Landlords & Tenants Need to Know
New regulations are reshaping the rental landscape in Los Angeles this year. Whether you’re a landlord or a tenant, staying informed is essential to navigating these changes with confidence. Here’s a breakdown of the most important updates taking effect in 2025.
Application Fees: New Refund Requirements & First-Come, First-Served Rules
California’s Assembly Bill 2493 (AB 2493) introduces stricter guidelines on tenant screening fees to prevent excessive charges and unfair application practices.
• First-Come, First-Served Processing – Landlords must now process applications in the order they’re received and approve the first qualified applicant.
• Refundable Fees – If an applicant is charged a screening fee but is not selected, the fee must be fully refunded within seven days.
• Prohibited Fees – Landlords cannot collect application fees if they know they have no available units.
• Mandatory Credit Report Disclosure – Applicants must be provided with a copy of their consumer credit report within seven days of screening.
This law is designed to increase transparency and fairness in the rental application process while preventing landlords from collecting fees for units that aren’t actually available.[¹]
Pet Rent & Deposits: What’s Changing?
Los Angeles County is considering further tenant protections related to pet policies, but for now, here’s what stands:
• Landlords can still charge pet rent and deposits, but they must adhere to the state’s maximum security deposit limits (one month’s rent for all units starting July 1, 2024).
• Service animals and emotional support animals (ESAs) are exempt—landlords cannot charge additional fees, rent, or deposits for these animals.[²]
• Potential Future Changes – Some proposals aim to prohibit pet rent entirely and require all landlords to allow at least one pet per unit. While these aren’t law yet, they’re being discussed at the county level.[³]
Security Deposits: Documentation Requirements Begin in April 2025
To address tenant concerns about improper deductions, new security deposit regulations require landlords to document unit conditions before and after tenancy.
• Before Move-In – Landlords must take photographs of the unit’s condition and provide them to the tenant.
• Move-Out Inspections – Before making deductions, landlords must take and share updated photos showing any damages.
• Final Reports – Tenants must receive a copy of these images along with an itemized deduction breakdown.
This policy takes effect April 1, 2025, adding a layer of transparency to security deposit disputes.[⁴]
Prohibited Fees: What Landlords Can No Longer Charge
As of January 1, 2025, California has banned several rental-related fees:
• Check Payment Fees – Tenants can no longer be charged extra for paying rent by check.
• Notice Posting Fees – Landlords cannot charge tenants for delivering or posting rental-related notices.
• Excessive Security Deposits for Military Tenants – If a service member is charged a higher security deposit, landlords must return the additional amount within six months if rent is paid on time.[⁵]
These rules reinforce tenant protections and prevent landlords from imposing unnecessary charges.
Positive Rental Payments: Who Does This Apply To?
For the first time, landlords must offer tenants the option to report their on-time rental payments to at least one major credit bureau.
• Landlords can charge a fee for this service (max $10/month).
• Existing tenants must receive this option by April 1, 2025.
• New tenants should be informed of this at lease signing.
Does This Apply to All Landlords?
Not exactly. This law primarily targets larger landlords:
• Applies to: Landlords with 16 or more units.
• Also applies to: Landlords with 15 or fewer units if they own multiple properties and are structured as a corporation, real estate investment trust (REIT), or LLC with a corporate member.[⁶]
Independent landlords who own a small number of units as individuals are not required to participate.
For tenants looking to build credit, this new law offers an opportunity to have rent payments reflected in their credit history.
Rent Increase Limits for 2025
Los Angeles landlords must comply with the following rent control policies:
• Rent-Stabilized Units (LARSO) – Between July 1, 2024, and June 30, 2025, landlords can raise rents by up to 4%. If they cover gas or electricity, they can increase rent by an additional 1% per utility.
• Unincorporated LA County (RSTPO) – Rent increases are capped at 3% per year, or 4% for qualifying small landlords.
• Statewide (AB 1482 Tenant Protection Act) – For units covered by state rent control, rent increases cannot exceed 8.9% (5% + inflation).[⁷]
Knowing these limits is crucial for both landlords setting new lease terms and tenants reviewing rent adjustment notices.
Price Gouging: Stronger Penalties for Rent Increases During Emergencies
Following recent wildfires and natural disasters, LA County has introduced stricter penalties for rent gouging:
• Fines for violating price gouging laws have increased from $10,000 to $50,000.
• This applies when an emergency declaration is in place, preventing landlords from unfairly increasing rents beyond legal limits.[⁹]
If you’re a tenant facing a sudden, extreme rent hike during an emergency, this protection may apply.
Next Steps
These 2025 rental law updates introduce major changes for landlords and tenants in Los Angeles. From new rent control limits to security deposit documentation rules, staying informed is key to avoiding legal missteps and ensuring compliance.
If you need help navigating these regulations—whether you’re leasing a unit or looking for the right tenant—feel free to reach out! email: alexis@urbane-la.com cell:323-570-4290