Mobile Inspection and Maintenance Platforms Incorporate New Requirements Into Native Workflow 

California Assembly Bill No. 2801, approved by Governor Gavin Newsom in September of last year, places a microscope on claims against renters' security deposits. The law increases the demands on rental housing operators attempting to deduct the expense of home repairs required due to damage caused by residents. The new law requires photo documentation and itemization of any claims made by operators upon move-out, forcing property management companies to conduct formalized inspection and maintenance processes.

What changed?

Current California law limits operators' claims on security deposits to the cleaning costs to return a home to its pre-move-in condition and reasonable amounts to repair damages incurred during the course of occupancy, not including ordinary wear and tear. Assembly Bill 2801 prohibits operators from deducting the cost of professional services such as professional carpet cleaning, unless reasonably necessary. It also prohibits security deposit deductions for repairs or cleanings not included in the itemized statement, which must be provided to former residents within 21 days of move-out. The statement must include descriptions of any claimed damage to the home, as well as accompanying photographs taken prior to conducting repairs or cleanings. Claims by the management company are prohibited if they fail to comply, in bad faith, with the itemized statement requirements. 

Compliance isn't complicated

While the requirements sound daunting, compliance doesn't need to include additional work for property management teams. What it means for operators is that comprehensive maintenance and inspection reports are now essential to effectively recoup the cost of damage repairs. Mobile maintenance and inspection platforms that enable damage and repairs to be photographed and documented through the normal course of the workflow significantly lighten the lift required to meet these new demands.

Dynamic maintenance and inspection platforms establish a detailed report for each home, built organically though every completed service request and every inspection or audit conducted. Mobile platforms include prompts instructing the technician to enter a damage description and photo documentation, so the information is readily available to tap for itemized claim statements. With digital inspection platforms, the routine process of turning a home upon move-out effectively satisfies the requirements of the new law.

Digital platforms also provide a transparent record of all service requests, completed work and inspection results, available to both residents and operators. The accessibility of photos and documentation throughout the term of residency ensures all parties are informed and helps to mitigate disputes after move-out.

Moving forward

Coming on the heels of Assembly Bill 12 — which went into effect last year, limiting security deposits to a maximum of one month's rent — AB 2801 signifies a continued effort to combat rising housing costs in California. While advocates tout the legislation as a necessary step toward leveling the playing field for renters, opponents point to the restrictions as another obstacle preventing operators from protecting their assets. Operators can lower the compliance hurdle through the implementation of comprehensive inspection and maintenance platforms, fulfilling the new requirements through the standard workflow. The scrutiny on security deposits is only elevating, and operators need the tools in place to optimize revenue recovery in an ever-evolving rental housing landscape.