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California’s rental housing laws are evolving faster than ever, and staying compliant can feel like a moving target. At AACSC’s recent seminar, Oliver John-Baptiste walked housing providers through the essentials of rental agreements, tenant screening, and legislative updates shaping the 2025 landscape. His session combined practical instruction with legal clarity, offering housing providers a roadmap to avoid costly disputes and stay compliant.
Setting the Foundation: What Goes Into a Rental Agreement
The very first paragraph of your rental agreement sets the tone for the entire tenancy. Oliver emphasized including:
- Agreement terminology – clearly define “Owner/Agent” and “Tenant” for consistency
- Names and signatures – ensure they match the rental application exactly
- Contract date & premises – establish a clear timeline and identify the property precisely
- Rent control status – disclose if the property is subject to AB 1482 or local ordinances
“The clearer you are up front, the less room there is for misunderstanding later.”
Fixed-Term vs. Month-to-Month Tenancies
- Fixed-Term: Locked-in dates with little room for changes mid-term. Requires advance planning for renewals and terminations.
- Month-to-Month: More flexible for both provider and tenant. Can be modified with proper notice, even without a tenant signature.
Rent, Deposits, and Payment Rules
Oliver reminded attendees that “rent” is broadly defined as all monetary obligations under the lease, including fees and damages. Key points included:
- Late fees must reflect actual damages — arbitrary penalties won’t hold up in court.
- Security deposits are capped at one month’s rent for many properties under AB 12.
- Inspections & documentation — photos and checklists are essential for compliance with AB 2801’s new deposit return rules (effective July 2025).
Utilities & Positive Rent Reporting
- Housing providers must specify which utilities they cover and require tenants to activate utilities within 3 days.
- For properties with 16+ units, housing providers must notify tenants of the option to report on-time rent payments to credit bureaus. Fees are capped at $10/month for market-rate units.
Tenant Screening & Credit Reports
Oliver explained the two approaches to applicant screening:
- Transparent method: Disclose screening criteria upfront.
- Less transparent method: Allows flexibility but requires refunding the credit check fee if the applicant is denied.
In either case:
- Credit reports must be provided to applicants within 7 days of processing.
- All criteria must remain lawful and non-discriminatory.
Required Disclosures
California law mandates that housing providers include:
- Lead-based paint booklet (pre-1978 units)
- Mold disclosure pamphlet
- Flood hazard form (if applicable)
- Bed bug addendum
- Prop 65 addendum (potential chemical exposure)
Skipping any of these can expose providers to liability and weaken their case in disputes.
Rent Control & Just Cause (AB 1482)
Oliver provided clarity on California’s Tenant Protection Act:
- Applies after 12 months of tenancy
- Annual rent increases must be calculated from the lowest rent paid in the past 12 months
- Requires proper notices and disclosure forms for rent-controlled or exempt properties
Local ordinances, like those in Los Angeles, may add even stricter rules.
Notices, Violations & Terminations
Proper service is non-negotiable:
- Notices must include exact dates, legal phrasing, and amounts owed
- Violations should be addressed with a Notice to Cure before further action
- Victims of domestic violence have special protections, including lock changes within 24 hours of notice
Key Action Items for Housing Providers
- Update forms and leases to reflect AB 1482 and AB 2801 requirements.
- Document everything — inspections, tenant communications, notices, and photos.
- Create internal processes for ESA/service animal requests, disclosures, and utility activations.
- Train staff and managers on compliance updates and fair housing obligations.
Quick Compliance Checklist
- Include all required disclosures (lead, mold, flood, Prop 65, bed bugs)
- Provide credit reports within 7 days of processing
- Follow AB 1482 rules on rent caps & just cause
- Conduct and document move-in/move-out inspections
- Offer positive rent reporting (16+ units)