With high interest rates for homeownership and the general evolution of the multi-family housing industry, legislation impacting residents, property managers, and property owners became an increasingly important topic in 2024. Rising rents, housing shortages, and concerns over tenant rights have driven legislative debates on how to create fair and balanced rental laws. Lawmakers across the country are introducing new regulations aimed at enhancing resident, as well as prospective residents, protections, clarifying management responsibilities, and addressing issues such as rent control, eviction policies, and lease transparency. With more renters and ownership/management companies navigating complex legal landscapes, these legislative changes are shaping the future of the rental market and redefining housing policies nationwide. 

In this article we highlight some states that recently passed legislation and how it may impact clients in 2025. Note that the majority of these laws use the term “landlord,” which may apply to property managers or property owners, or both, depending on the specific law.

California

Although 2024 was not as active as 2023 for California, California nonetheless passed many important changes that may impact clients.
‍

AB 2747 - Rent Reporting

AB 2747 was signed into law in 2024 and went into effect January 1, 2025. The newly enacted law requires landlords with 15 or more units to offer tenants the option to have their positive rent payments reported to credit bureaus. The fee for this service is capped at $10 per month (or the actual cost to the landlord, if less), and tenants can opt in or out at any time. Landlords are required to inform tenants about this option annually and at new lease signings. Refer to the recent blog post for more information. 

SB 611 - Prohibiting Certain Fees
Additional laws taking aim at fees include SB 611 which will become effective July 1, 2025. This law prohibits certain convenience fees. Specifically, the bill prohibits landlords from charging a tenant any fee for payment by check (for rent or security deposits); requires disclosure if a security deposit is higher than standard or advertised is charged to service members; and restricts landlords from charging tenants a fee for servicing, posting, or otherwise delivering any notice.

AB 2493 - Rental Application Fees

Effective January 1, 2025, AB 2493 aims to address fees associated with screening services for rental housing. Landlords must ensure an applicant meets specific criteria before charging them a fee, including whether their application is actually considered. The bill also prohibits landlords from charging an applicant a screening fee if they know that no units are available to rent at the time the screen is conducted or will not be available in a reasonable amount of time. We encourage customers to review the entire bill to assure compliance with section Section 1950.6(c). of AB 2493.
Further, consumers no longer need to request a copy of their consumer report to receive it. Instead, AB 2493 requires the landlord to provide a copy to the applicant within 7 days of receiving it.‍

Colorado 

HB 24-1098 - Just Cause Eviction
Effective April 2024, HB 24-1098 prohibits a landlord from evicting a residential tenant unless the landlord has cause for eviction. Examples of proper cause include: unlawful occupation of the rental property (e.g., after the lease has expired or a term of the lease has been violated); conduct that creates a nuisance or disturbance;  negligent damage to the property by a tenant; or conditions exist constituting grounds for a "no-fault eviction". Please review HB 24-1098 for details regarding what constitutes a “no-fault eviction”.

SB 24-094 - Warranty of Habitability

Colorado additionally passed and implemented SB 24-094 in May of 2024, focusing on warrant of habituality. The new bill updates current law requiring landlords to establish time frames for communication, assure landlords provide habitable conditions, requiring landlords to provide comparable accommodations if uninhabitable conditions exist.

We encourage Colorado customers to review SB 24-094 to ensure compliance.

New York

Local Law 360-A (NYC) - FARE Act

The FARE Act has officially become law in New York City after the Mayor took no action within 30 days of its passage. This new legislation, set to take effect in June 2025, prevents landlords from passing broker fees onto prospective tenants, addressing long-standing affordability issues in the city’s rental market. Despite previously negotiating with the City Council in support of the bill, Mayor Adams declined to sign it and later voiced opposition before its passage.

Local Law 24 (NYC) - Fair Chance Housing Act
Local Law 24 (Fair Chance Housing Act) has become effective January 1, 2025. The bill implements significant changes in criminal records screening and prospective tenants. Before a criminal screening can be conducted on an applicant, a lease must first be conditionally offered. Lookback periods for certain crimes have been reduced as well (three years for misdemeanors and five years for felonies). Landlords are also required to provide certain disclosures, and provide the criminal screening to the applicant and provide them time to correct any inaccuracy or provide additional information, among other requirements. 

Good Cause Eviction Law

On April 20, 2024, New York eviction laws were updated to enact the Good Cause Eviction Law (Good Cause), which dramatically impacts the rights and obligations of landlords and tenants in New York by limiting evictions, requiring lease renewals, and capping rent increases for most market rate apartments in New York City, and other villages, towns, and cities state-wide.

We encourage New York customers to review the Good Cause Eviction law to ensure compliance.
‍

Rhode Island

HB 7647 - Fee Transparency

Signed into law June of 2024, HB 7647 took effect January 1, 2025. This law amends the Rhode Island Residential Landlord and Tenant Act and aims to prohibit certain convenience fees, disclosure of important information to tenants in the rental agreement, required utility payments, and protections for elderly tenants, among other things. 

The law includes significant changes to lease and fee requirements:. 

1. Convenience Fees. Landlords are prohibited from charging a convenience fee with rent, unless they accept other forms of payment, such as a check or cash, without a convenience fee. 
2. Fee Disclosure. Landlords are required to disclose any additional, non-optional fees within the lease. 
3. Utility Disclosure. Landlords must also disclose whether utility costs are included in the rent and which are the responsibility of the tenant. ​​Additionally the lease must include a list of utility providers that provided services to the rental unit. 
4. Renter’s Insurance. If a landlord requires a rental to obtain rental insurance this requirement must be clearly stated in the lease. 

The law goes on to state that if a written lease does not exist, requirements of the fees are required to be provided to the tenant in some form of writing.

‍
‍Entrata is Here to Help

‍
We anticipate 2025 to continue to be active in such legislation given the continuing focus on housing affordability. We look forward to providing updates to our customers as we become aware of important regulatory changes. Please reach out to your Entrata representative with any questions or concerns. 

‍Disclaimer: This information is not legal advice. The information contained herein is general in nature and is not intended to provide, or be a substitute for, legal analysis, legal advice, or consultation with appropriate legal counsel, and the use of this document does not create an attorney-client relationship between you and Entrata or between you and any Entrata employee. You should seek appropriate professional advice.