Effective April 1, 2025, California Assembly Bill 2801 (AB 2801) introduces important changes to how residential property managers handle the disposition of security deposits, move-in and move-out inspections, and tenant communication. The law prioritizes fairness and documentation, setting new standards for transparency and compliance.

Understanding AB2801: Key Provisions

Photo-based documentation of a rental property’s condition at multiple points in the lease cycle: (i) Before Move-In for leases starting July 1, 2025, landlords must take and store photographs showing the property’s condition prior to tenant occupancy, and (ii) After Move-Out beginning April 1, 2025, landlords must photograph the property immediately after a tenant vacates — before repairs or cleaning. Additional photos are then required once those services are completed, especially if deductions from the security deposit are involved.

The law also tightens what can be deducted from a tenant’s deposit. Only necessary expenses to restore the property to its original condition, excluding normal “wear and tear” are permitted. Also, routine cleaning or cosmetic fixes must be justified with evidence. Tenants now have the right to request an initial inspection before moving out, giving them the chance to address potential issues and avoid deductions. Landlords must inform tenants of this right in writing. Within 21 days of move-out, landlords must provide an itemized breakdown of deductions, supported by photo evidence from before, during, and after the tenancy. The goal of AB 2801 is a more transparent, evidence-based process for handling property conditions and security deposits.

Common Compliance Challenges

While AB 2801 promotes clarity, it also increases operational demands. Property managers may face challenges from their tenants due to:

• Incomplete Documentation
• Disputes Over Property Condition
• Time-Intensive Inspections
• Disorganized Storage
• Lack of Transparency

In short, staying compliant without a system in place can be a costly stressful experience.

Best Practices for AB 2801 Compliance

Property managers can ease the burden of compliance by embedding best practices before move-in, during tenancy, prior to move-out, and also post move-out such as:

Before Move-In: (i) Conduct a thorough property inspection using photos or 360° virtual tours, (ii) Complete a condition report with detailed notes and timestamped images, and (iii) Share the report with tenants upfront to establish clear expectations.

During Tenancy: (i) Log any maintenance or incidents with photos and written records, and (ii) Use an organized, centralized system to store reports and communications.

Pre-Move-Out: (i) Offer and complete a pre-move-out inspection if the tenant requests it, (ii) Use side-by-side photo comparisons to show any changes since move-in, and (iii) Share a summary report to help tenants resolve issues before the final inspection.

Post-Move-Out: (i) Inspect the property before any repairs or cleaning begin and document the condition, (ii) Provide a final, itemized statement with before-and-after photos to justify deductions, and (iii) Securely store all reports and documentation for future reference or disputes. When followed consistently, these steps can reduce the risk of disagreements, improve transparency, and protect both landlords and tenants.

To meet AB 2801’s requirements efficiently, many property managers are turning to Inspection Express — a leading platform that streamlines inspections, reporting, and compliance. Some of Express’ key features include:

• 360° Virtual Tours: Full visual record of a property’s condition for unmatched transparency.
• Side-by-Side Photo Reports: Automated move-in and move-out photos for easy comparison.
• AI-Powered Comments: AI-powered quick comments generated from uploaded photos.
• Instant Report Delivery: Automatically send branded reports to tenants and owners.
• Time-Stamped, Geo-Tagged Photos: Legally verifiable evidence for every inspection.
• Cloud-Based Storage: Secure, centralized access to all reports and photos.
• Integrations: Works with platforms like Rentvine and Rent Manager to streamline workflows.

Contributed by Inspection Express

For more information, visit ipropertyexpress.com/us/