AB 2801 California Security Deposit Law: What Inland Empire Landlords Need to Know for Property Management Compliance

If you own rental property in California, there is a new law you need to know about. AB 2801 changes the way landlords handle security deposits. And you know at Sankofa Realty, we keep our owners informed, empowered, and compliant so your investment keeps working for you.

California AB 2801

Safeguard your finances: Comply with California AB 2801 to avoid expensive errors.

What is AB 2801?

AB 2801 is a California rental law that strengthens tenant protections around security deposit deductions. It is not just about returning money. It is about transparency, documentation, and following proper procedures so you avoid disputes and costly mistakes.

Here’s What California Landlords Must Do Now

1. Provide a full itemized statement When you deduct money from a resident’s security deposit, you must clearly explain each charge. List what was done, why it was necessary, and exactly how much it cost. Be specific and provide enough detail so there is no confusion.

2. Photos and videos are essential AB 2801 requires photo evidence. That means taking photos right after the resident moves out, before repairs or cleaning, and then again after the work is completed. Beginning July 1, 2025, you must also take move-in photos for new leases to establish a clear starting condition. In addition to photos, we at Sankofa Realty also document with videos at both move-in and move-out. Video walkthroughs can capture details that photos might miss and provide an even stronger record if a resident disputes your deductions.

3. Deposit limits Most California landlords are now limited to collecting one month’s rent for a deposit, even for furnished units. Small-scale landlords who own no more than two properties totaling four or fewer units can still collect up to two months’ rent.

4. Respect that 21-day deadline California property management law still requires you to return the deposit or send the itemized statement within 21 calendar days after the tenant moves out. Missing this deadline can lead to penalties.

5. No automatic cleaning charges You can no longer charge automatically for things like carpet cleaning or repainting unless there is damage beyond normal wear and tear. Only necessary cleaning supported by proof can be deducted.

6. Keep receipts and estimates Save every receipt or written estimate from contractors and vendors. If you are ever challenged in court, these documents will protect you.

7. Offer a pre-move-out inspection Give residents the opportunity to walk through the property with you before they move out. Point out any issues and allow them the chance to fix things themselves. This can save time, money, and unnecessary tension.

The Risk of Ignoring AB 2801

Failure to follow AB 2801 gives residents the right to sue for up to twice the amount of their security deposit. That $2,000 deposit could quickly become a $4,000 loss if you do not have the right processes in place.

Sankofa Realty Has You Covered

Laws like AB 2801 can be stressful to navigate if you are managing your own rental property. With a California property management company like Sankofa Realty, you do not have to worry about missing a single step. We handle everything from legal compliance to photo and video documentation, all while protecting and growing your investment with integrity, intention, and impeccable service.

At Sankofa Realty, we are not just managing property, we are managing legacy. And we want you to win!

Ready to get your rental business compliant and profitable

 Contact Sankofa Realty today and let us keep you stress-free, informed, and in control.