AB 1248 would add Civil Code Section 1950.2 to regulate what landlords may charge in residential tenancies and how those charges must be disclosed. For new tenancies beginning on or after January 1, 2026, the bill would generally limit tenant obligations to rent plus specified charges such as security deposits, certain government-imposed rent stabilization pass-throughs, submetered water charges, and otherwise permitted late fees. For tenancies that began before that date, it would preserve some existing charges already in place at the start of the tenancy, but would still restrict new or increased fees and impose detailed rules for utility billing and disclosure.
The bill also would require more transparent rental advertising beginning April 1, 2026. Landlords and their agents would have to advertise a clear, conspicuous price that includes required fees and charges, along with disclosures of optional housing services and their fees. The measure would limit the use of ratio utility billing systems, allowing them only under specified conditions for water or sewer charges, and would require advance disclosure of utility billing methods, historical bills, and allocation formulas for new tenancies. It would also require payments to be applied in a specified order, prohibit late fees on late fees, and treat a decrease in housing services as an increase in rent for purposes of rent-cap laws.
AB 1248 would significantly affect landlord-tenant law by narrowing the kinds of mandatory charges that can be imposed, especially for new leases, and by creating a detailed statewide framework for fee transparency, utility pass-throughs, and optional services. It would also create a private right of action with actual damages, minimum damages of $1,000, injunctive relief, attorneys’ fees, and treble damages for willful or reckless violations, along with a three-year statute of limitations. The bill expressly states that waivers are void, that local governments may adopt stronger tenant protections, and that the section is severable.
The general sentiment reflected in the available history appears favorable among a majority of the Assembly committee that heard the bill, as shown by the 8-3 do-pass vote on April 22, 2025. The bill’s findings frame it as a tenant-protection and transparency measure intended to reduce surprise charges and improve predictability in housing costs. No committee transcript is available here, but the vote suggests support for the bill’s consumer-protection goals.
The main points of contention are likely to center on the bill’s breadth and operational impact on landlords, especially its limits on ancillary fees, its restrictions on ratio utility billing systems, and its detailed disclosure requirements for advertising and lease documents. Landlords may view the measure as reducing flexibility to recover costs or structure pricing, while tenant advocates are likely to support the bill’s effort to prevent hidden charges and fee layering. The bill ultimately died on the inactive file on June 2, 2025, despite the committee approval.
AB 1248 would add a new Civil Code section governing residential rental fees, charges, advertising disclosures, utility billing, and payment application rules. It would restrict landlords from charging fees beyond those expressly allowed, require all-in advertised pricing with limited exclusions, regulate ratio utility billing systems for water and sewer, and create enforceable tenant remedies including damages and attorneys’ fees. The bill would apply prospectively to new tenancies beginning January 1, 2026, while also imposing certain disclosure and fee limitations on existing tenancies, and it would preserve local authority to adopt stronger tenant protections.
The available voting history indicates generally favorable sentiment in committee, with the bill receiving an 8-3 do-pass vote on April 22, 2025. The bill’s stated purpose is strongly tenant-protective, emphasizing transparency, predictability, and limits on surprise charges. No transcript is available, but the committee result suggests support from a majority alongside some opposition or concern from a minority.
Likely areas of contention include the bill’s restriction on landlord-imposed fees, its treatment of utility pass-throughs and ratio utility billing systems, and the compliance burden created by required advertising and pre-lease disclosures. Landlords and property owners may argue that the measure limits cost recovery and flexibility, while tenant advocates likely support the bill as a response to hidden or duplicative charges. The bill’s private enforcement provisions, treble damages, and voiding of waivers may also be disputed as potentially increasing litigation exposure.