Residential rental properties: fees.

Senator Wahab's Fair Rental Act of 2025 establishes comprehensive restrictions on residential rental fees in California, prohibiting landlords from charging various costs beyond basic rent. The legislation bars property owners from imposing processing fees, convenience charges, pet ownership fees, and parking space fees, while capping late payment penalties at 2% of monthly rent and requiring a seven-day grace period.

The bill revises application screening fee regulations, maintaining the $30 maximum while eliminating landlords' ability to charge for their time spent reviewing applications. Property owners must now either process applications in order of receipt and charge screening fees only when actually considering an application, or refund fees to unsuccessful applicants within specified timeframes. All additional fees beyond monthly rent cannot exceed 5% of the rental rate.

Enforcement provisions allow tenants to recover unauthorized charges through civil action, with landlords liable for the fee amount plus 5% daily compound interest from the collection date. The legislation also repeals existing regulations on parking space fees, replacing them with an outright prohibition on such charges. These changes modify multiple sections of the Civil Code governing residential tenancy fees and deposits.