Renting out a home in Santa Clara County, California, has always meant navigating a complicated legal framework full of tenant protections, deadlines, and limits. Not only are there strict laws already in place, it seems as though those laws are always changing. You have to keep up.
And it’s not easy to keep up.
That’s where your Santa Clara County property management partners can help. We are always following the laws, looking at how they’re interpreted, and protecting the properties we manage. It’s our job to keep you compliant.
Even experienced rental property owners can make easy legal mistakes. Let’s avoid that if we can. Here are some of the 2025 legal changes to Santa Clara County rental laws that you need to be aware of.
New Restrictions on Rental Applications
One of the most notable changes landlords in Santa Clara County should be aware of in 2025 involves rental applications. The state has implemented new regulations aimed at making the rental process more equitable and transparent. Here’s what you need to know:
- Ban on Certain Fees. Landlords are prohibited from charging potential tenants application fees unless they are used solely for processing the application (background and credit checks). This means that any additional fees, such as for screening services or administrative costs, can no longer be passed on to applicants.
- Disclosure of Criteria. Landlords must provide a written list of their rental criteria to all applicants at the time of application. This includes clear guidelines on what would disqualify an applicant, such as specific credit scores or rental history issues. This transparency is aimed at reducing discrimination and ensuring that applicants know exactly what to expect in the application process.
Property managers like us have been doing these things already. A new change is that we now must accept the first qualified applicant we screen, if we are collecting application fees. This means you cannot collect 10 applications and 10 application fees and choose a tenant from among that pool. As soon as you have a qualified applicant, you need to accept them.
Changes to Security Deposit Rules
Security deposits are often a point of contention between landlords and tenants, and last year we all adjusted to a new cap on security deposit amounts. We can now collect no more than the equivalent of one month’s rent in most cases.
New laws are in place this year concerning photographs. If you’re going to collect a security deposit, you need to provide photos that demonstrate a property’s condition before a tenant moves in and after a tenant moves out.
Again – we’ve been doing this anyway.
Remember that if you intend to withhold part of the security deposit for damages or cleaning, you must provide an itemized list of deductions to the tenant within 21 days. This itemization must detail the specific damage, cleaning, or repair costs, and be accompanied by receipts or estimates. And photos. Failure to provide this documentation could result in the tenant being entitled to the full deposit.
New Rent Control Ordinances and Rent Increases
Santa Clara County has strengthened its rent control ordinances in certain cities, particularly in areas like San Jose, which has strict rent control laws for buildings built before 1979. Here are some of the major updates:
- Rent Increase Limitations: In cities with rent control (like San Jose), landlords must adhere to strict limits on how much rent can be increased in any given year. In 2025, the allowable annual increase is capped at 5% of the current rent or the Consumer Price Index (CPI) change, whichever is lower. This ensures that rent hikes are kept reasonable and helps provide tenants with stability.
- Just Cause Eviction Protections: As part of the rent control laws, landlords in rent-controlled areas are required to provide “just cause” for evictions. This means that eviction can only occur under specific circumstances, such as non-payment of rent, violation of the lease, or if the landlord intends to occupy the unit themselves. For landlords, it’s essential to understand the specific legal justifications for eviction, as wrongful eviction claims can lead to significant penalties.
New laws this year also provide extra time for tenants to respond to an eviction notice. Tenants now have 10 court days to respond to a Summons and Complaint instead of five days.
Reporting Rent Payments to Credit Bureaus
You’re now required to report on-time rental payments to at least one major credit bureau if your tenants request this service. You can charge them $10 per month in order to handle this administrative task. As of April 1, 2025, it’s important that you offer to report the on-time payments.
Increased Enforcement of Habitability Standards
Over the last several years, California laws have made habitability standards more important. Cities and counties are now required to investigate complaints and enforce laws in a more aggressive way. Santa Clara County is therefore enforcing stricter standards for the habitability of rental properties. Landlords are required to maintain their properties to certain safety and health standards, and there are new reporting requirements for maintenance and repair issues.
Tenants have a right to file complaints with local authorities if they believe their unit does not meet habitability standards. If found to be in violation, landlords may face fines or other penalties. In the past, local officials could ignore any complaints that seemed unfounded or frivolous. Now, they must investigate completely.
The 2025 updates to rental laws in Santa Clara County are aimed at improving fairness, transparency, and the overall rental experience for both landlords and tenants. These are not all of the changes and updates, but a look at the major and most important shifts. There are also more nuanced laws you’ll need to understand, particularly around balcony inspections if you own a building, changing locks for victims of abuse, and updated characteristics such as hairstyles landing into the fair housing protections.
Please contact us at South County Property Management with any questions about legal compliance and new legislation. We serve all of Santa Clara County, including San Jose, Campbell, Saratoga, Cupertino, Sunnyvale, Los Gatos, Milpitas, Morgan Hill, Gilroy, and neighboring areas.
