Security Deposit Deduction & Vacant Unit Photograph Law Now Fully in Effect

California’s security deposit deduction law, AB 2801, took full effect today, July 1, 2025, with rental housing providers now required to capture and provide both pre-occupancy and post-vacancy “before-and-after” work photos for the purpose of justifying security deposit deductions. Upon move out, these photos must be provided to the resident with an itemized statement and explanation of the security deposit deductions. Date stamping on all photos should be utilized to help demonstrate compliance.

• Effective April 1, 2025, the first phase of the law requires rental housing providers to take and provide post-vacancy, “before-and-after” work photos of the unit that show each item for which the security deposit was used for cleaning, repair, or replacement costs.
  
  
• Effective July 1, 2025, the second phase of the law requires rental housing providers to also take and provide pre-occupancy photos of the unit, in addition to the post-vacancy “before-and-after” work photos. This means new photos of the vacant unit must now be taken (and retained) prior to the start of each new tenancy.

Upon vacancy, photos must be sent to the resident no later than 21 days following the date of vacancy, but not earlier than either of the following: the date notice is provided to terminate the tenancy; or 60 calendar days prior to the expiration of a fixed-term lease.

• Additionally, rental housing providers are prohibited from including automatic, fixed cleaning costs in their rental agreements. Automatic carpet cleaning upon vacancy is an example of a security deposit deduction that is no longer allowed. However, charges deemed necessary to restore the unit to its pre-tenancy condition (excluding normal wear and tear) are still allowed.

If you have questions regarding AB 2801 compliance, contact AAOC at (714) 245-9500 or contact@aaoc.com.

To read the text of AB 2801, click here.