In 2025, several key housing laws will take effect across California, many of which were enacted back in 2023. These updates impact how landlords handle security deposits, screening procedures, accessibility requests, and even parking arrangements in some counties.
For Napa landlords, it’s essential to review lease agreements, update policies, and train staff before new leases start. While some of these laws target large property owners, others apply broadly to all rental housing providers, including individual landlords with smaller portfolios.
By understanding the new requirements early, Napa property owners can protect their investments, strengthen tenant relationships, and ensure full compliance with the state’s evolving housing regulations.
Key Takeaways
- Several new California laws take effect in 2025, including changes to deposits, rent control, and tenant screening.
- AB 12 now limits most security deposits to one month’s rent, with some exceptions.
- Accessibility and fair housing protections expand under AB 1620 and SB 267.
- The Tenant Protection Act gains new enforcement power through SB 567.
- Staying proactive with lease updates and documentation is key to compliance.
AB 12: Security Deposits Now Capped at One Month’s Rent
A. The New Limit
Starting July 1, 2024, for leases signed or renewed in 2025, AB 12 caps most California security deposits at one month’s rent, regardless of whether the unit is furnished or unfurnished.
This marks a major shift from the previous law, which allowed up to two months for unfurnished and three months for furnished units.
B. The Small Landlord Exemption
Some smaller landlords are exempt. The exemption applies to “natural person” landlords or LLCs made up entirely of individuals who:
- Own no more than two residential properties, and
- Have no more than four total dwelling units combined.
These qualifying landlords may still collect up to two months’ rent as a deposit, except when renting to active-duty service members, where the cap remains one month.
C. Why It Matters for Napa Owners
This change aims to improve housing affordability by reducing upfront costs for tenants. For Napa landlords, it’s time to:
- Review and adjust security deposit policies before new leases begin.
- Update lease templates and pre-move-in documentation.
- Train property managers to explain the change clearly to applicants.
Staying consistent with the new cap protects landlords from disputes and supports smoother move-ins.
AB 1620: Accessibility and Rent Control Adjustments
A. What It Does
The AB 1620 amends the Costa-Hawkins Rental Housing Act to give tenants with mobility-related disabilities more flexibility.
If a tenant in a rent-controlled unit requests to move into another accessible unit in the same property, the landlord must allow it when one becomes available. Importantly, the tenant’s rent must remain the same as it was in their original unit.
B. Why It Matters
This law strengthens accessibility and fair housing compliance for landlords. Napa landlords managing older or rent-controlled properties must keep accurate records of available units and document all tenant communications about accessibility requests.
Property managers who maintain clear documentation and respond promptly will reduce legal risk and build tenant trust, key traits for successful rental operations in regulated markets like Napa Valley.
AB 1418: Ending Crime-Free and Nuisance Ordinances
A. The Prohibition
AB 1418 prohibits cities and counties from enforcing “crime-free housing” or “nuisance” ordinances that penalize landlords or tenants for calls to police or emergency services.
It also bans local governments from requiring landlords to perform criminal background checks as part of tenant screening programs.
B. Enforcement and Remedies
Cities that continue enforcing these ordinances could face lawsuits and injunctions. For landlords, this means removing or revising any city-mandated “crime-free” lease addenda.
Pro Tip for Napa Landlords: If your local lease templates include city addenda or clauses referencing “crime-free housing,” consult with your property manager or legal advisor to ensure compliance with state law.
Clear and fair screening practices can also improve tenant retention. To learn about handling tenant issues effectively, explore these strategies for resolving tenant complaints.
SB 267: New Rules for Credit Checks and Subsidized Tenants
A. Fairness in Screening Applicants with Subsidies
Under SB 267, landlords who require credit history as part of their screening must now accept alternative proof of ability to pay from applicants who receive government rent subsidies. Acceptable alternatives include:
- Pay stubs
- Employment verification
- Rental payment history
Landlords must give applicants with housing vouchers a reasonable period to provide this documentation before denying their application.
B. Legal Weight
Failing to comply is considered a violation of the Fair Employment and Housing Act (FEHA), a serious offense that can lead to civil penalties and lawsuits.
Application Tip for Napa Landlords: Review your tenant screening policies and third-party software settings to ensure applicants using subsidies are treated equally. Adjusting your system now helps avoid unintentional bias and strengthens your compliance record.
For landlords expanding their rental operations, maintaining fair screening policies is as important as market strategy. You can learn more about sustainable growth in this guide on how to grow your rental portfolio.
SB 567: Stronger Tenant Protection Act Enforcement
A. Expanded Enforcement
SB 567 builds upon the Tenant Protection Act of 2019 (AB 1482), increasing penalties for violations of rent caps and no-fault eviction rules.
Key updates include:
- The Attorney General and local city attorneys can now enforce the law.
- Landlords who wrongfully evict or exceed rent limits can face triple damages, punitive damages, and attorneys’ fees.
B. What Landlords Need to Do
To stay compliant:
- Verify all rent increases stay within the annual state limits (5 percent + CPI or 10 percent total, whichever is lower).
- Review all “no-fault” eviction notices for accuracy and legal justification.
- Keep clear records of rent changes, notices, and tenant communications.
With more agencies empowered to enforce the Tenant Protection Act, Napa landlords must focus on transparency and precision in their rental records.
SB 712: Rights for Tenants with E-Bikes and Scooters
A. Tenant Storage Rights
Under SB 712, landlords may no longer prohibit tenants from owning or charging personal micromobility devices like e-bikes and e-scooters. Each tenant may keep one device per person in their unit.
B. Landlord Options
Landlords can:
- Offer secure outdoor storage or charging areas as an alternative.
- Enforce reasonable safety standards, such as prohibiting battery charging in hallways or shared areas.
This new rule encourages sustainable commuting but requires updated house rules and safety policies for all tenants. Using a digital tenant system, similar to the platforms described in tenant portal features for Napa landlords, can help landlords share and track these policy updates efficiently.
AB 1317: Parking Must Be Unbundled from Rent (in Select Counties)
A. Where It Applies
AB 1317 takes effect January 1, 2025, for multifamily buildings with 16 or more units that receive certificates of occupancy after that date. It currently applies to properties in:
Alameda, Fresno, Los Angeles, Riverside, Sacramento, San Bernardino, San Joaquin, Santa Clara, Shasta, and Ventura Counties.
B. The Rule
Rent and parking costs must be listed separately (“unbundled”) in leases, giving tenants transparency and flexibility. This does not apply to affordable housing developments or properties built with specific state or federal funding.
While Napa County isn’t currently affected, this policy reflects a growing statewide trend toward sustainable urban planning, something Napa landlords should monitor as new development rules evolve.
FAQs about California Housing Laws 2025
Can landlords require tenants to buy renters' insurance under these new laws?
Yes. None of the 2025 laws prohibit landlords from requiring renters' insurance, as long as it’s clearly stated in the lease.
Do the new deposit limits apply to lease renewals or only to new leases?
AB 12 applies to all leases signed or renewed on or after July 1, 2024.
What happens if a landlord ignores the “first come, first served” screening rule from AB 2493?
Violations could result in discrimination claims or state enforcement actions. Landlords must process rental applications in the order received.
How do these laws interact with local rent control ordinances in Napa County?
State law typically sets the floor for tenant protections, while local ordinances can add further requirements. Always comply with whichever rule is stricter.
What documentation should landlords keep for fair housing compliance in 2025?
Keep copies of applications, inspection records, rent increase notices, and correspondence for at least three years.
Staying Ahead with First & Main Property Management
California’s 2025 housing laws bring the most sweeping updates in years, reshaping how landlords handle deposits, screening, and tenant relations. For Napa landlords, these rules offer both challenges and opportunities to modernize management practices.
First & Main Property Management helps property owners stay ahead of regulatory changes with expert lease reviews, technology-driven compliance tools, and personalized landlord support. Our team understands the unique Napa market and ensures your properties remain profitable and fully compliant.
For professional guidance and ongoing updates on California’s housing laws, visit our owner services page.
