Disclaimer: This document and any information contained herein are provided for informational purposes only and do not constitute legal advice. The author of this document is not an attorney, and the information presented should not be considered as a substitute for professional legal advice.
"Junk fees" have been a concern for tenants and housing associations in the rental housing market for several years.
Now, in a time of change for rental housing in California, property owners will have to adapt to a new law that forbids a few of these specific fees from being charged.
Senate Bill 611 (SB611) started as a proposal that targeted rental advertising. However, after pushback from the California Apartment Association, the bill morphed and was approved as a law that bans two specific tenant fees as well as a nice situation involving security deposit charges.
Let's dissect this new law and what it means for California rental property owners.
Changes for Rental Property Owners Under SB611
SB611 can almost be seen as a supplement to the California Tenant Protection Act of 2019. While that law limits increases to monthly rent on a wider scale, SB611 addresses smaller fees that landlords can charge to renters in specific situations. Both laws seek to address the problem of affordable housing in California.
All of these state laws together significantly limit what landlords can charge and when in California.
Here are the restrictions the new law imposes:
1. Fees for Notices
The first fee the law will prohibit is any fee charged to the tenant for "serving, posting, or otherwise delivering any notice." This means any kind of written notice, whether it be a notice for past-due rent, violations of the lease agreement, evictions, or any other kind of notice posted to the tenant.
In the past, landlords in California could charge fees to cover the costs associated with preparing and delivering a notice to their tenants. This will no longer be allowed under SB611 due to its perception as a "junk fee."
2. Fees for Check Payments
The second type of fee the law will not allow is a fee charged to a tenant who uses a check to pay rent.
Processing a check can take extra work on the part of the landlord or property manager, so these fees were often charged to offset that. However, due to the minimal work needed, check payment fees were included in the law as well.
Charging a convenience fee for rent payments made by credit card is still allowed under California law.
3. Security Deposit Charges for Military Members
The final provision of SB611 deals not with junk fees but with security deposit charges. However, this rule doesn't apply to every security deposit you charge, only to deposits charged to tenants who are a military service member.
Some landlords will charge tenants in the military a higher security deposit since they can be called to service at any time and break the lease. This can be seen as a way to offset the risk, but can also be seen as an unnecessary upcharge to our military members.
SB611 seeks to eliminate this from happening by requiring a written statement to be provided to tenants in the military when the landlord charges a security deposit that is "higher than standard or advertised."
It will also require the landlord to return the additional amount charged no more than 6 months after the tenancy begins if the tenant is not in arrears on their rent.
Keep in mind that AB12 was enacted in 2024 and limits security deposits in general to one month's rent for residential rental properties. There are exemptions to this law that you can read about in our blog: Navigating AB12: New Security Deposit Rules for California Landlords
When SB611 Takes Effect
SB611 will be rolled out on April 1, 2025. Any fees or security deposits charged after this date must align with this new legislation.
If the landlord fails to comply, it could mean serious legal and financial repercussions.
You can read the full bill text for SB 611 here.
Other New Landlord Laws to Note in 2025
SB 611 isn't the only new landlord-tenant law enacted in California in 2025. There are three other new laws to adapt to, and the landlord owns the responsibility of adhering to each of these:
AB 2347 will extend the time tenants have to respond to an eviction notice.
AB 2801 will impose new requirements for documentation when a tenant moves out and security deposit charges are necessary.
AB 2747 will give tenants the option to have their rent payments reported to credit bureaus, placing the responsibility of reporting on landlords.
Each of these bills will take effect between Spring and Summer of 2025. You can read more about the requirements of these bills, their effective dates, and strategies to adapt on our blog.
How to Adapt Your Practices
The changes brought about by SB611 are relatively niche, but that only means that you as a landlord must have greater attention to detail when deciding charges for your tenants.
If you were in the habit of charging for posting notices or check payments before, you're better off phasing out those fees now to avoid stepping over legal boundaries once the law takes effect.
Be especially careful with tenants in the military. Ensure you, your property manager, or your leasing agent charges a reasonable amount on the security deposit. The best practice under this new law is to charge military tenants the same security deposit as any other tenant if you weren't already.
If you're worn out with all the updated practices imposed by the new state laws in California recently, you're not alone. The ever-shifting landscape of the rental business here has overwhelmed many landlords. But rental property investing is still a lucrative venture here, and you can find an easier path by hiring a property manager. It's our job to stay updated and adapt the practices of your rental property to ensure the best possible results.
Protect Your Investment with Advantage Property Management Services
If you're looking for a property manager or are thinking about changing your current one, look no further. Advantage Property Management Services is always two steps ahead of California's rental practices. We stay ready and on call to answer each and every concern of our owners and tenants. We've got the experience and the know-how to steer the ship for your rental into profitable waters.
To get started, explore our services and get your free rental analysis. From there, you can contact us anytime at 925-430-7899.
