Key Takeaways

1. New Rent Control Limits: Stay informed on California’s statewide rent caps and Sacramento’s stricter local rules to ensure lawful rent increases.
2. Enhanced Tenant Protections: Update your lease agreements and notice procedures to comply with extended eviction notices and special accommodations requirements.
3. Mandatory Transparency & Sustainability: Provide clear fee disclosures and implement energy-efficient upgrades to meet legal standards and attract eco-conscious renters.

Feeling overwhelmed by all the new rules coming into play for rental properties in 2025? You’re not alone. Many Sacramento landlords are trying to make sense of the shifting regulations and wondering how these changes will impact everything from lease agreements to resident screening and property maintenance. 

It’s a lot to keep up with, especially when your priority is to protect your investment and keep your rental business running smoothly. Whether you own a single-family home or a small portfolio, understanding these updates is key to staying compliant and avoiding penalties. 

At Peak Residential, Inc. we’ve been helping Sacramento, CA investors stay informed and prepared for whatever the industry throws their way.

New Rent Control Rules

As a Sacramento rental property owner, you’ll want to pay close attention to how statewide rent control updates might affect your pricing strategy this year. 

In 2025, California continues to enforce caps on annual rent increases, especially for older buildings not exempt under AB 1482. While the maximum percentage may seem reasonable, local ordinances can impose stricter limits, and it’s vital to know which ones apply to your property. 

So, how much can you raise the rent, and when? It depends on the type of building, its construction date, and whether it’s exempt.

Staying within the legal limit helps avoid penalties, protects your reputation, and ensures your rental remains competitive and attractive to long-term residents.

Strengthened Resident Protections

California has expanded several resident protection measures for 2025, and Sacramento landlords need to adjust their policies to stay compliant. 

One of the major changes involves longer notice periods before lease non-renewals or evictions without cause. For example, you may now be required to provide a 90-day notice in certain situations. 

There are also clearer regulations around how to handle residents who rely on housing assistance or have disabilities. So, what does this mean for your rental operation? You’ll need to carefully review your lease agreement terms, update your communication processes, and ensure your team understands the latest rules.

Doing so won’t just keep you out of legal trouble; it also shows residents that you’re running a respectful, trustworthy rental business.

Full Disclosure Rules

In 2025, transparency isn’t just good practice, it’s the law. Landlords in Sacramento are now expected to provide detailed documentation about fees, property conditions, and any deductions made from security deposits. 

That means you can no longer rely on vague explanations or verbal notices. Residents want to know exactly what they’re being charged for, and now, regulators do too.

If you’re making changes to the lease terms or updating your fee structure, make sure everything is clearly communicated in writing and acknowledged by the resident. 

This level of openness not only builds trust but also protects you in case of disputes. Clear communication and thorough documentation are essential tools for running a smooth, compliant rental operation.

New Sustainability Expectations

California continues to lead the way in energy efficiency, and new environmental guidelines in 2025 may directly affect your Sacramento rental properties. 

These include requirements for more energy-efficient appliances, low-flow plumbing fixtures, and eco-friendly lighting systems. The good news is that making these upgrades often results in long-term cost savings, improved property value, and access to potential tax breaks. 

Plus, more residents are seeking eco-conscious homes, so your investment in sustainability can give your property an edge in competitive market trends. 

Understanding which upgrades are required versus recommended is key, and staying ahead of the curve positions you as a forward-thinking landlord.

2025 Compliance Game Plan

To keep your Sacramento rental business running smoothly this year, it’s essential to follow a clear action plan.

These practical steps will help you stay compliant, confident, and competitive:

• Review and Update Lease Agreements: Go over existing lease agreements to ensure they reflect current legal requirements, especially regarding rent control, notice periods, and fee disclosures.
• Attend Local Regulatory Workshops or Webinars: Stay informed by participating in city or county-led informational sessions that explain regional updates in detail.
• Implement Clear Communication Systems: Set up processes to deliver all required notices, lease changes, and disclosures in writing with clear language and documented acknowledgment.
• Schedule an Annual Policy Audit: Review internal procedures with a legal or compliance expert to identify potential gaps in how your rental operations align with 2025 laws.
• Make Energy-Efficient Upgrades: Prioritize cost-effective improvements like LED lighting, efficient HVAC systems, and water-saving fixtures to meet state sustainability standards.
• Document Everything Thoroughly: Keep clear records of all communications, maintenance visits, fees, and resident interactions to protect yourself in case of disputes.
• Train Your Property Team (If Applicable): Make sure anyone who interacts with residents or manages operations is fully updated on the latest legal and procedural changes.
• Monitor Local Ordinances Regularly: State laws may set a baseline, but Sacramento’s local rules can add more layers. Staying up-to-date locally is just as important.

Bottom Line

Navigating new regulations doesn’t have to be overwhelming when you have the right partner. Peak Residential is here to guide Sacramento, CA investors through every update, from rent control changes to sustainability requirements. 

With a deep understanding of local laws and rental market trends, their team can help you stay compliant, protect your investment, and manage residents with confidence. 

Reach out to Peak Residential, Inc. today to explore what strategies and solutions will work best for your property.