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Newsom signs bills impacting renters' security deposits, credit scores and more

The California Apartment Association says these bills will help renters and rental property owners.

SACRAMENTO, Calif — Governor Gavin Newsom wants to increase accountability, transparency and efficiency around housing in California. To do that, he signed a package of bills to address a variety of issues, including rental protections.

"We believe that they did provide a balance, and in some cases are positive, certainly for both landlords and tenants," said Debra Carlton with the California Apartment Association (CAA).

The CAA provides education and legislative affairs for rental property owners and tenants. Some of the bills impacting the CAA, such as Assembly Bill 2801, are regarding security deposits. Even though the CAA says this law already exists, it will now provide more clarifications.

"What it will require rental property owners to do is do some proof. So when the tenant moves in, they're gonna take pictures of the unit to show the condition that existed," Carlton said.

Assembly Bill 2747 will allow tenants with good rental history to be reflected in their credit scores.

"Down the line, the next landlord will know that this tenant was a good tenant when it came to paying rent on time. So it's positive for both landlords and tenants," Carlton said.

Senate Bill 611 prevents landlords from charging renters a fee if rent is paid by check.

"That quite frankly is something that we agreed with. That's not necessarily a negative thing for rental property owners. We already have the right to charge a fee if the check bounces," Carlton said.

Lastly, state Senator Tom Umberg's (D-Santa Ana) Senate Bill 900 addresses people living within a homeowners association, providing them protections regarding issues with utilities like gas and electricity. 

"SB 900 says if the homeowners association board doesn't act, then the management company can start to act so that people aren't left in limbo," Umberg said.

Assemblymember Laura Friedman (D-Burbank), author of AB 2801, provided ABC10 with this statement:

"Mortgage and rent prices are high enough in California. Unfairly retained security deposits cannot be one more financial hurdle we expect Californians just trying to keep a roof over their heads to jump over successfully. I’m grateful to the Governor for helping to bring this relief to California’s renters.”

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