Assembly Member Pellerin's residential tenancy legislation revises how landlords must return security deposits to tenants, establishing new requirements for electronic refunds and situations involving multiple residents. Under the measure, landlords who received security deposits or rent electronically must return remaining deposits through electronic transfer to tenant-designated accounts, unless alternative arrangements are mutually agreed upon in writing.
For units with multiple adult tenants, landlords must issue a single check payable to all adult residents and provide the itemized statement of deductions to any one tenant, barring a written agreement specifying different terms. The bill preserves the existing 21-day deadline for returning deposits after tenants vacate while adding requirements for landlords to document unit conditions through photographs - both before new tenancies beginning July 2025 and after receiving possession back from departing tenants.
The measure maintains current provisions allowing landlords to deduct reasonable costs for repairs and cleaning, requiring detailed documentation of charges exceeding $125. Landlords who fail to comply with the new requirements face potential statutory penalties up to twice the deposit amount, in addition to actual damages. The changes take effect April 2025, giving property owners time to implement electronic payment systems and update their procedures for handling security deposit returns.
![]() Gail PellerinD Assemblymember | Bill Author | Not Contacted |
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Assembly Member Pellerin's residential tenancy legislation revises how landlords must return security deposits to tenants, establishing new requirements for electronic refunds and situations involving multiple residents. Under the measure, landlords who received security deposits or rent electronically must return remaining deposits through electronic transfer to tenant-designated accounts, unless alternative arrangements are mutually agreed upon in writing.
For units with multiple adult tenants, landlords must issue a single check payable to all adult residents and provide the itemized statement of deductions to any one tenant, barring a written agreement specifying different terms. The bill preserves the existing 21-day deadline for returning deposits after tenants vacate while adding requirements for landlords to document unit conditions through photographs - both before new tenancies beginning July 2025 and after receiving possession back from departing tenants.
The measure maintains current provisions allowing landlords to deduct reasonable costs for repairs and cleaning, requiring detailed documentation of charges exceeding $125. Landlords who fail to comply with the new requirements face potential statutory penalties up to twice the deposit amount, in addition to actual damages. The changes take effect April 2025, giving property owners time to implement electronic payment systems and update their procedures for handling security deposit returns.
Ayes | Noes | NVR | Total | Result |
---|---|---|---|---|
76 | 0 | 3 | 79 | PASS |
![]() Gail PellerinD Assemblymember | Bill Author | Not Contacted |