If you’re still using pen-and-paper move-out checklists, you’re already out of compliance.
In 2025, California enacted Assembly Bill 2801, a landmark law that changes how landlords handle security deposit deductions. The new requirements:
- April 1: Move-out inspections must include timestamped photos taken before and after any cleaning or repairs.
- July 1: Move-in inspections for new leases must also include timestamped photographic evidence.
No documentation? No deductions. It’s that simple.
The Burden of Proof Is Now on You
AB 2801 shifts the liability from tenant to landlord. You’re no longer protected by the assumption of good faith. You must prove your claims.
To legally deduct from a security deposit, you must now provide:
- Timestamps and photographic evidence
- Receipts or invoices for repair work
- Justifications that clearly show damage exceeds “normal wear and tear”
- A complete deduction statement delivered within 21 days
If you miss the timeline or lack the proof, you lose the right to deduct—and may face penalties.
California Might Be First — But It Won’t Be the Last
Other jurisdictions are watching closely. California often leads on tenant protection law, and this sets a new national precedent.
States with strong renter rights momentum—like New York, Oregon, Washington, Massachusetts, DC—are likely next. And globally, the trend is already clear:
- UK: Deposit protection schemes encourage photo evidence and tribunal-based dispute resolution
- Australia: Move-in/out condition reports with photos are standard in NSW and Victoria
- Germany and Canada: Photo documentation is expected, even if not always mandated
AB 2801 formalizes what other markets are already hinting at: photo-based inspections are no longer optional.
Most Property Teams Aren’t Ready
Compliance isn’t just about knowing the rules. It’s about having systems in place to follow them—consistently, and at scale.
Here’s where many operators are falling short:
- Manual inspection reports with no timestamps
- Photos stored on individual team members’ phones
- Checklists that aren’t tied to the lease or unit record
- No automation for 21-day deadlines
- No standardized audit trail across properties
One missed deadline or incomplete report could result in lost revenue or worse—legal exposure.
Compliance Can Be an Advantage
Top operators are using AB 2801 not just to avoid risk, but to improve operations.
Here’s what they’re doing differently:
- Standardizing inspections across the portfolio
- Automating inspection scheduling and documentation workflows
- Reducing disputes with transparent photo-backed reports
- Building trust with tenants through faster, clearer communication
- Improving make-ready speed with structured move-out processes
This isn’t just about legal protection—it’s about NOI, turnover, and operational control.
What the New Standard Looks Like
Modern inspection platforms are now table stakes. They deliver:
- Photo-first inspections tied to lease data
- Automatic timestamps and geolocation for every image
- Custom checklists by property type or region
- Built-in receipts and deduction logic
- Instant reports delivered to tenants, legal teams, or auditors
- Secure cloud storage to protect and retrieve data anytime
This is how you scale compliance across hundreds—or thousands—of units.
Are You Inspection-Ready?
If your last inspection report was challenged in court, would your documentation hold up?
That’s the standard now.
Look what could be coming your way.
→ [See how Property Inspect helps you stay compliant and confident]
