Core tenant protections
Rent control (AB 1482)
Tenant Protection Act of 2019
- Annual increases capped at 5% + local CPI, max 10%
- Applies on a rolling 12-month basis — not calendar year
- Just cause required to terminate after 12 months of tenancy
- 1 month relocation assistance for no-fault evictions
- SFR, condos, and new construction may be exempt with written disclosure
In Tracy: No local ordinance layers on top. Tracy uses the SF Bay Area CPI — check BLS.gov before each increase. Without the written exemption addendum, your SFR is treated as covered.
Fair housing laws
Federal Fair Housing Act + California FEHA
- Protected: race, religion, sex, disability, familial status, national origin
- Source of income is a California-specific protected class
- Cannot refuse Section 8 vouchers — must apply same screening criteria
- Reasonable accommodations required for tenants with disabilities
- Equal and consistent advertising and screening required
In Tracy: Section 8 voucher holders are active in the Tracy market. Declining applicants solely for voucher use exposes you to a DFEH complaint and civil penalties.
Security deposits
Deposit limits & returns Updated
SB 567 (2024) + AB 2801 (2025)
- Cap reduced to 1 month's rent for most units (SB 567)
- Must be returned within 21 days with itemized statement
- Allowable: unpaid rent, cleaning, damage beyond normal wear
- Late return forfeits all deduction rights — 2x penalty possible in bad-faith cases
In Tracy: Many landlords are still running leases with 2-month deposits from before 2024. Review and update any existing leases that exceed the new 1-month cap.
Photo documentation requirements New
AB 2801 — effective 2025
- Landlords must now photograph the unit at three specific moments: before move-in, after move-out before any repairs, and after repairs are made
- Photos must be date-stamped and retained
- Required to accompany any itemized deduction statement
- What was previously best practice is now a legal requirement
- Action item: Update your move-in and move-out workflow now. A deduction without the required photos can be challenged even if the damage is legitimate.
Tenant screening
Screening fee rules (AB 2493) New
Effective 2025 — high compliance risk
- Must refund the screening fee if you do not actually screen the applicant
- Must provide applicant with a copy of the screening report used
- Cannot charge a fee that exceeds your actual cost of screening
- Application process must follow a defined order — first-come, first-screened
- Violations can result in refunds, penalties, and fair housing complaints
In Tracy: Even a small mistake in your rental application process can now lead to required refunds, delays, or legal exposure. Review your screening workflow before your next vacancy.
Rent payment credit reporting (AB 2747) New
Effective 2025
- Landlords with 15+ units must offer tenants the option to have rent payments reported to at least one credit bureau
- Tenant opt-in is voluntary — landlords cannot charge for the reporting
- Disclosure of the option must be made at lease signing and annually
- Non-compliance can result in tenant complaints and civil liability
In Tracy: If you own a multi-unit property with 15+ units, you need an AB 2747-compliant lease addendum and a disclosure process in place before the next lease signing.
Evictions & habitability
Eviction & notice requirements
Strictly regulated statewide
- 3-day notices for nonpayment, lease violations, illegal activity
- 30-day notice — tenancies under 1 year (no-fault)
- 60-day notice — tenancies over 1 year (no-fault)
- Notice wording and service method must be legally exact
- Accepting partial rent after a 3-day notice resets the process
In Tracy: UD cases filed through San Joaquin Superior Court. Budget 4–8 weeks for uncontested, 3–6 months for contested. A 2025 bill (SB 436) that would have extended the notice period to 14 days failed — the 3-day rule remains in effect.
Habitability requirements
Warranty of habitability
- Weatherproofing, plumbing, heating, and electrical must be functional
- Pest-free at move-in; ongoing landlord responsibility in most cases
- Tenants may withhold rent or repair-and-deduct (up to 1 month) for violations
- Code enforcement complaints can trigger city or county inspections
In Tracy: Heating is especially relevant — Tracy's San Joaquin Valley winters can be cold. Service HVAC systems before each lease period to avoid habitability complaints.
Disclosures
Required disclosures at lease signing
Failure can void exemptions or create liability
- Lead-based paint (pre-1978 properties)
- Bed bug disclosure — all new tenants
- Mold disclosure (if known)
- AB 1482 exemption notice (if applicable) — must be in writing
- Flood hazard, Megan's Law database reference
- Methamphetamine or fentanyl contamination (if known)
In Tracy: Older neighborhoods near downtown may include pre-1978 homes triggering lead disclosure. Check FEMA flood maps for properties near Delta waterways.
Annual lease review checklist
California law changes frequently
- Confirm deposit amount complies with current 1-month cap
- Verify AB 1482 exemption addendum is included if applicable
- Add AB 2801 photo documentation language to move-in process
- Add AB 2493 screening fee and report disclosure process
- Add AB 2747 credit reporting option (15+ unit properties)
- Update all disclosure addenda to current-year CAR versions
Note: Don't rely on last year's lease. Three new laws took effect in 2025 that require addenda or process changes. A property management company can handle these updates for you.
