New Rules for Landlords in California 2025 — What Every Inland Empire Property Owner Must Know

California has made more changes to landlord-tenant law in the past three years than in the previous decade. For Inland Empire landlords — particularly those who self-manage or who haven't reviewed their lease agreements recently — staying current with these changes is not optional. Violations can result in significant liability, from security deposit claims to Fair Housing complaints to wrongful eviction lawsuits.

This guide covers the most significant changes in plain language, with specific attention to what each change means for how you operate your Inland Empire rental property in 2025.

AB 12 — Security Deposit Cap: One Month's Rent

Effective July 1, 2024, Assembly Bill 12 dramatically changed California's security deposit rules. Where landlords could previously collect up to two months' rent for unfurnished units and three months' rent for furnished units, the law now caps security deposits at one month's rent for the vast majority of landlords.

Who is affected: Individual landlords who own more than two residential properties, or who own a total of more than four residential units, are subject to the one-month cap. This covers most professional landlords and virtually all property management company clients.

Small landlord exception: Individual landlords who own no more than two residential properties (not including any property they occupy) with a combined total of no more than four units may still collect up to two months' rent as a security deposit.

What this means practically: The security deposit used to function as a meaningful financial buffer against move-out damages. At one month's rent on a $2,200 Moreno Valley rental, the deposit is $2,200 — barely enough to cover a professional cleaning and carpet replacement after a long-term tenant. This makes preventive maintenance documentation (thorough move-in inspection with photos), routine property inspections, and rigorous tenant screening more important than ever.

AB 1482 — Rent Increase Limits for 2025

California's Tenant Protection Act of 2019 (AB 1482) has been in effect for several years, but many IE landlords still misunderstand how it applies to their properties — and what the 2025 calculation looks like.

For covered properties, annual rent increases are capped at 5% plus local CPI, with a maximum of 10% total regardless of CPI. For most Riverside County properties, local CPI has been running approximately 2–4%, making the practical 2025 cap roughly 7–9%.

Notice requirements: Rent increases of 10% or less require at least 30 days' written notice. Increases over 10% (which are rare under AB 1482 but may occur with certain exempt properties) require at least 90 days' notice.

Which properties are covered: Multi-family buildings built before January 1, 2005 are generally covered. Single-family homes and condos are covered unless the owner is an individual (not a corporation, LLC, or REIT) and provides the required AB 1482 exemption notice in the lease. If you own a single-family home in Moreno Valley in your own name and include the required notice in your lease, your property is likely exempt from the rent cap — but the just cause eviction protections still apply after 12 months of occupancy.

SB 567 — Just Cause Eviction Updates

Senate Bill 567 (effective April 1, 2024) tightened enforcement of AB 1482's just cause eviction protections, addressing landlord practices that had been used to circumvent the law's intent.

Owner Move-In Evictions: SB 567 requires that when a landlord evicts a tenant under owner move-in just cause, the owner (or qualified family member) must actually move into the property within 90 days and remain in occupancy for at least 12 months. Landlords who do not comply face penalties equal to the greater of the tenant's actual damages or one month's rent for each month of violation. Previously this requirement existed, but enforcement was more difficult.

Relocation Assistance: For no-fault just cause evictions (owner move-in, substantial renovation, withdrawal from rental market), landlords must either pay the tenant one month's rent as relocation assistance or waive the last month's rent. The assistance must be paid at or before the time the notice to terminate is served — not at move-out.

Substantial Renovation: Evictions for substantial renovation now require that the landlord obtain all required building permits before serving the termination notice, and that the renovation work be of a scope that genuinely requires the tenant to vacate (not cosmetic updates that could be done between tenancies).

New Disclosure Requirements for 2025

California residential leases require a specific set of disclosures at the time of lease execution. Recent legislative updates have added and modified several of these requirements:

Flood Zone Disclosure: Beginning January 1, 2024, landlords must disclose whether a property is located in a FEMA Special Flood Hazard Area (SFHA) or state responsibility area. This applies at lease signing and at each renewal. FEMA's flood map portal can be used to check your specific property's designation.

Bedbug Disclosure Updates: California's bedbug disclosure requirements have been updated. Landlords must provide written notice about bedbug prevention and must disclose any known current or prior bedbug infestations at the property. The disclosure language must now meet specific statutory requirements.

Mold Disclosure: Landlords must disclose known mold conditions that exceed permissible exposure limits established by the California Department of Public Health. If you are aware of a prior mold remediation or ongoing moisture issues, disclosure is required.

Proposition 65 Warnings: Properties with known Proposition 65 chemical exposure risks (lead paint, certain cleaning chemicals in laundry areas, etc.) require appropriate warning notices. This is most relevant for pre-1978 construction common in Hemet, San Jacinto, and older Riverside neighborhoods.

AB 1076 — Criminal History Screening Limits

Assembly Bill 1076 took effect in January 2024 and significantly changed how California landlords may use criminal history in tenant screening decisions.

What you cannot consider: Arrests that did not result in conviction, charges that were dismissed, sealed or expunged convictions, juvenile records, and convictions for conduct that has since been decriminalized.

What you may consider (with limitations): Felony convictions for specific offense types within the past 7 years may be considered, but only after conducting an individualized assessment that considers the nature of the offense, time elapsed, evidence of rehabilitation, and how the applicant's tenancy would specifically affect others at the property.

Documentation requirement: If you decline a tenant based (even partly) on criminal history, you must provide written notice stating the specific conviction considered, the evidence reviewed, and how the individualized assessment was conducted. This documentation is essential if your decision is later challenged.

How to Stay Compliant in 2025 — A Checklist for IE Landlords

The most efficient way for IE landlords to stay compliant is professional property management. See how Magnolia's lease management keeps your agreements current, and how our residential property management keeps you on the right side of California landlord-tenant law.

Frequently Asked Questions