California Rental Compliance Guide.
Everything you need to know about AB 2801 (photo documentation), AB 414 (electronic deposit returns), and AB 628 (appliance requirements).
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Photo documentation requirements for security deposit deductions. Now required for all move-out inspections. No photos = no deductions.
If rent or the deposit was collected electronically, the refund must also be returned electronically unless both parties agree in writing to another method.
Working stoves and refrigerators required for any lease entered, amended, renewed, or extended on or after January 1, 2026.
AB 2801 Overview
AB 2801 amended California Civil Code §1950.5, now requiring landlords to provide timestamped photographic evidence when claiming security deposit deductions for damages beyond normal wear and tear. This law is now in effect — move-out photos since April 1, 2025, and move-in photos since July 1, 2025. For the full landlord playbook, see our guide on AB 2801 photo documentation.
Photo Documentation Standards
All inspection photos must meet specific requirements to be considered valid evidence for security deposit deductions.
All photos must include a verifiable timestamp showing when the photo was taken. BiPact automatically captures and preserves photo timestamps.
Each photo should be labeled with the room or area it documents (e.g., Kitchen, Master Bedroom, Bathroom).
Add descriptions for any damage or notable conditions to make comparison easier.
Take photos from multiple angles for each area, especially where damage exists.
21-Day Deadline Rules
You have exactly 21 calendar days (Civil Code §1950.5(h)(1)) from when the tenant vacates to return the security deposit or provide an itemized statement of deductions with supporting documentation. Missing this deadline is the most common trigger for the bad faith penalty — see what landlords actually pay when they miss it.
Receipt Requirements
For any single deduction exceeding $125 (Civil Code §1950.5(h)(4)), you must provide documentation such as receipts, invoices, or written estimates from licensed contractors. For the full landlord template, see our guide on itemized deduction statements.
AB 414: Electronic Deposit Returns
Assembly Bill 414 (effective January 1, 2026) amended California Civil Code Section 1950.5. The trigger is how rent or the deposit was originally collected: if you accepted those payments electronically, you must return the deposit electronically too — unless you and the tenant agree in writing to another method.
Return the deposit using an electronic method available to you (typically the same channel you used to collect rent — ACH, payment app, etc.). You are not required to sign up for a specific service a tenant names; you are required to offer an electronic path when rent came in electronically. Any departure from that (a mailed check, for example) requires a written agreement between you and the tenant.
A mailed check is still valid when rent was never collected electronically, or when both parties agree in writing to use a check. If rent came in electronically, the electronic refund is the default unless the written-agreement opt-out is on file.
BiPact allows tenants to specify their preferred refund method on their dashboard. When generating the final deposit statement, landlords can see the tenant's preference and record how the deposit was returned with proof documentation.
Deduction Categories
- •Unpaid rent or utilities owed
- •Damage beyond normal wear and tear
- •Cleaning costs if unit not left reasonably clean
- •Restoring alterations (if not permitted in lease)
- •Key/remote replacement if not returned
- •Faded paint or small nail holes
- •Worn carpet in traffic areas
- •Loose door handles or hinges
- •Minor scuffs on walls or floors
- •Worn bathroom caulking
AB 628: Appliance Requirements
Assembly Bill 628 (effective January 1, 2026) added paragraphs (10) and (11) to California Civil Code Section 1941.1, making a working stove and refrigerator part of the implied warranty of habitability. The requirement applies to any lease entered into, amended, renewed, or extended on or after January 1, 2026 — not retroactively to existing tenancies.
For any new lease signed on or after January 1, 2026 — or any existing lease that gets amended or renewed after that date — the unit must be delivered with a working stove/range and refrigerator. A recalled appliance must be repaired or replaced within 30 days of notice.
The tenant may elect to supply their own refrigerator — but this election must be made at lease signing and documented in the lease itself. The exception applies only to the refrigerator; the stove/range is still the landlord's responsibility. Existing tenancies are unaffected until the lease is amended or renewed on or after January 1, 2026.
During move-in inspections, BiPact prompts you to verify appliance presence and working condition in the kitchen. This creates a documented record of AB 628 compliance at the start of each tenancy.
Statute of Limitations
Understanding the legal timeframes for security deposit disputes is crucial for both landlords and tenants. California law provides specific windows during which legal action can be taken.
Tenants typically have between 3 and 4 years from the date of move-out to file a lawsuit for wrongful withholding of a security deposit. The statutory §1950.5 claim is generally subject to a 3-year limitation period under California Code of Civil Procedure §338(a) (liability created by statute); a claim pleaded as breach of a written lease may have a 4-year limitation period under CCP §337. Practitioners often plead both.
California Code of Civil Procedure §338(a) provides a 3-year statute of limitations for liability created by statute, which covers the wrongful-withholding remedy under Civil Code §1950.5. The clock starts when the landlord was required to return the deposit (21 days after move-out).
If the case is pleaded as a breach of the written lease itself, the 4-year statute under CCP §337 may apply. Most practitioners plead both the statutory and contract theories so the longer window is preserved.
For rental agreements made verbally without a written lease, the statute of limitations is 2 years under California Code of Civil Procedure Section 339.
Security deposit disputes up to $12,500 can be filed in Small Claims Court. The same statute of limitations applies (4 years for written leases, 2 years for oral).
Under California Civil Code §1950.5(m), if a landlord retains any part of the deposit in bad faith, a court may award statutory damages of up to twice the amount of the security, in addition to actual damages. California practitioners most commonly apply the 2× figure to the portion wrongfully withheld; the statute text refers to "the security" (the full deposit), and courts have discretion on the calculation. This penalty is subject to the same limitation periods.
BiPact automatically retains all your documentation (photos, receipts, statements, communications) for 7 years after a tenant moves out—covering the full statute of limitations plus a safety buffer. You'll receive reminders before any data is archived or deleted. See our Data Retention Policy.
Pre-Move-Out Walkthrough
California Civil Code Section 1950.5(f) requires landlords to notify tenants in writing of their right to request an initial inspection before move-out. This walkthrough protects both parties by identifying potential deposit deductions in advance and giving tenants time to make repairs. Full landlord playbook: how to run a §1950.5(f) walkthrough.
Must inform tenant in writing of their right to request a pre-move-out inspection. The notice must be provided before the tenancy ends.
The inspection must be scheduled no earlier than 2 weeks before the lease end date.
Must give at least 48 hours written notice of the inspection date and time.
Must provide a written, itemized list of all deficiencies found during the inspection.
Tenant has until move-out to remedy the listed deficiencies and avoid deposit deductions.
Landlord cannot deduct for visible damage omitted from the walkthrough deficiency list — unless the damage occurred after the inspection, was hidden by the tenant's possessions during the inspection, or was not reasonably identifiable at the time (§1950.5(f)).
BiPact's walkthrough feature handles formal written notice delivery, tenant response tracking, scheduling with date validation, room-by-room documentation, and deficiency list generation — ensuring full compliance with 1950.5(f).
Compliance Checklist
Documents & Downloads
BiPact generates several types of documents to ensure you have complete legal protection. Understanding what each document contains helps you use them effectively.
The itemized deposit statement meeting AB 2801 requirements that you must provide to tenants within 21 days of move-out.
Comprehensive PDF compilation designed for legal proceedings. Use this if a tenant disputes deductions or takes you to small claims court.
Complete archive of all inspection photos with embedded metadata for tamper detection. Keep this for your records throughout the 7-year retention period.
Tenants get their own free portal to participate in inspections, view statements, dispute deductions, and track their deposit refund throughout the process.
The Itemized Statement is what you legally must provide to tenants. The Evidence Bundle and Photo Archive are for your protection—they provide the comprehensive documentation you'd need if a tenant disputes your deductions or takes legal action. BiPact stores everything for 7 years, covering the full statute of limitations.
This guide provides general information about AB 2801, AB 414, and AB 628 requirements. For specific legal questions about your situation, consult with a licensed California real estate attorney or your local legal aid office. Statutory text is available at leginfo.legislature.ca.gov.