Security deposit disputes are among the most common sources of conflict between landlords and tenants. To help reduce these disputes, California enacted Assembly Bill 2801, which imposes new documentation requirements on landlords who make deductions from a tenant’s security deposit.
These two dates are very important:
Beginning April 1, 2025, landlords were required to begin photographing the rental unit after the tenant vacates, prior to any repairs or cleaning, and again after any chargeable repairs or cleaning have been completed.
For tenancies that began on or after July 1, 2025, landlords must also photograph the unit at, or immediately before, the tenant takes possession. Because deductions are measured against the condition of the unit at the inception of the tenancy, documenting that baseline condition is now more important than ever.
The following is a practical guide to complying with these requirements under California law.
The Move-In
You find an applicant that meets all of your criteria; send them an Offer to Lease and Holding Deposit Agreement (AOA’s Form 100B); and remove the unit from the market until the agreed-upon date – but wait, there’s more. California law requires landlords to photograph the unit at or immediately before the tenant’s move-in.
To help landlords comply with AB 2801’s documentation requirements, AOA’s Property Manager Cloud (PMC) includes, at no additional cost, an evidentiary photo feature that captures photographs with independently verifiable date, time, and geolocation metadata. Those photographs are organized within PMC’s inspection module alongside AOA’s Move-In/Move-Out Checklist (Form 131) and Security Deposit Disposition (Form 133), creating a complete evidentiary record that can help substantiate lawful security deposit deductions if they are ever challenged.
John Doe’s lease starts October 1, 2026, which means that every part of AB 2801 is in full force. Before he takes possession, photograph and video-record the unit’s condition, then collect the security deposit in accordance with CA Civil Code §1950.5’s maximum allowable limits, applying any holding deposit toward the move-in costs. When photographs are taken through AOA’s PMC, the system automatically preserves the date, time, and geolocation metadata and associates each image with the appropriate inspection item. Landlords using other methods should likewise ensure their photographs are date-stamped and retained with their records.
The entire statute measures the condition of the unit against its condition at the inception of the tenancy, requiring the unit to be returned to the same level of cleanliness, excluding ordinary wear and tear. AOA’s Form 131 provides an excellent way to document that baseline condition by recording the condition of each room and fixture at move-in, corroborated by the accompanying photographs. Both the landlord and tenant sign the form, and it should be retained with your tenancy records.
During the Tenancy
AB 2801 does not add any new photo step during the tenancy, but two habits can protect you. Keep your move-in photographs and signed Form 131 secure and readily retrievable, because they establish your baseline. Although AB 2801 does not require photographs during the tenancy, documenting tenant-caused damage as it occurs can strengthen your records if the damage later becomes the basis for a lawful security deposit deduction. AOA’s PMC allows those photographs and checklist notes to remain organized with the lease and inspection record throughout the tenancy.
The Move-Out
John Doe gives his notice to vacate, and you provide the required written notice of his right to request an initial inspection (AOA’s Form 135). Please note: the preliminary walk-through must be offered in writing within a reasonable time after receiving or giving notice to terminate the tenancy. Should the tenant want a pre-exit inspection, which may be conducted no more than 14 days before the actual move-out date (CA Civil Code §1950.5(f)), either a mutually-agreed upon date and time is scheduled, or the landlord sets a date and time with at least 48 hours advance notice. During the walkthrough, each item is compared against what was recorded in the “Move-In” column. This becomes your itemized statement of proposed deductions and shows John exactly what must be repaired or cleaned before he vacates to avoid those charges. Both you and John sign under the Preliminary Walk-Through section, either on paper or electronically through AOA’s Property Manager Cloud, where the signed inspection is stored with the lease record.
After John returns possession, complete the final “Move-Out” column and record that all keys, access cards, and remotes have been returned in the “# Received” section. Now the AB 2801 photo requirements continue. Assume John patched and repainted the wall but did not repair the damaged door that was identified during the initial inspection. Once possession has been returned, photograph the unit’s condition before any chargeable cleaning or repairs are performed, and again after the work has been completed. Within PMC, the photographs are organized alongside the corresponding inspection items, making it easy to demonstrate exactly what was observed and what work was performed.
Twenty-One Day Security Deposit Disposition Deadline
Once possession of the unit is returned, the 21-day security deposit return clock begins. AOA’s Form 131 is purpose-built for the AB 2801 timeline, establishing three condition columns that correspond to the three key inspection points under Civil Code § 1950.5:
- Move-In: the baseline condition, supported by your move-in photo set (required for tenancies beginning on or after July 1, 2025)
- Preliminary Walk-Through: items identified before move-out
- Move-Out: the final surrendered condition, supported by photographs taken before any chargeable repairs or cleaning
Each deduction should trace cleanly across all three stages. Using John’s damaged door as an example, the issue was identified during the preliminary walk-through, remained uncorrected at move-out, and was corroborated by the before-and-after photographs, together with the corresponding inspection record on Form 131 or AOA’s PMC.
Always confirm compliance with current statutes and any local rules.
Rachel Steen is a Membership Advisor with AOA. She earned her B.A. in Political Science, graduating summa cum laude from Woodbury University, Raised in a family with generations of experience in California’s rental housing and construction industries, she grew up around an apartment building built by her grandmother and later managed and maintained by her mother. Drawing on both her educational background and lifelong connection to the rental housing industry, she strives to help our members, California’s housing providers, navigate the opportunities and challenges of property ownership.
Disclaimer: This guide is published for general informational and educational purposes only. It is not legal advice and does not create an attorney-client relationship. AOA forms referenced herein are provided as templates. Proper completion, execution, and retention are the sole responsibility of the user.