2025 brings several additions and changes to rental regulations, as the real estate rental landscape continues to evolve. With new rental property rules and regulations in effect, understanding regulatory requirements will be critical for maintaining compliance and ongoing success with your long-term investments.
Fortunately, CIVIC is here to help. We’ve compiled a list of the biggest changes to rental regulations coming in 2025.
The Biggest Rental Regulation Changes
From enhanced tenant protections to new transparency requirements, let’s explore the biggest updates to rental property regulations.
Enhanced Tenant Protections
Protection laws for tenants continue to evolve and grow state by state and year by year. 2025 is no different, with expanding tenant protection laws designed to safeguard against unfair housing practices. These new tenant rental regulations include:
- Stricter guidelines for eviction procedures
- Safeguards for tenants using housing assistance programs
- Longer lease termination notice periods
In many states, landlords are required to provide up to 90 days’ notice for non-renewal of leases. Additionally, several states are moving to strengthen tenants’ rights on eviction. States like Arizona, Maryland, Massachusetts, and Minnesota have introduced laws to minimize the consequences of prior evictions by sealing eviction records sooner.
Rent Control Policy Updates
Several regions across the country have updated rent control policies to include state-wide rental increase caps to combat challenges with housing affordability. State rental increase caps aim to balance tenants’ needs for affordability with landlords’ costs and income–with some states, like Oregon allowing annual rent increases of up to 10%.
However, local governments in charge of rental housing rules and regulations in your area can impose additional limits on rental increases. It is important to stay up-to-date on the latest rent control policies throughout your state and region.
Sustainability & Energy Efficiency Updates
Sustainability remains a key focus for governing bodies and an ongoing necessity for today’s tenants. Several states, including California and Washington, have introduced new mandates requiring energy-efficient upgrades for certain property types and appliances, including:
- HVAC systems
- Insulation
- Windows
- LED lighting
- Water-saving fixtures
While stricter sustainability and energy efficiency rental regulations can be more costly upfront for investors, many of the latest energy-efficient appliances and technology come with a high ROI and enhanced consumer appeal. Additionally, rental properties that meet these requirements can qualify for tax incentives–making eco-friendly home improvements a smart choice for landlords in 2025.
Relaxed Zoning & ADU Laws
As the country continues to navigate an ongoing housing crisis, one thing is certain, everyone wants to see more housing options. Due to this, many states introduced bills to minimize the barriers preventing housing from being built. This includes more relaxed zoning laws, the ability to build residential developments in commercial zones, and the simplification of permitting processes.
Additionally, states like California have implemented new rental regulations to streamline the process of building accessory dwelling units (ADUs). With 10 states fully embracing ADUs and 20 implementing conditional allowances, we expect a substantial rise in ADU additions to investment properties.
Transparency Requirements
While transparency requirements may seem like more hassles for landlords, they present protection and demand incentives for property owners. A recent tenant study by SatisFacts Research found that 82% of renters want more fee transparency. Notably, tenants are more likely to sign a lease with a landlord they feel is transparent with rental agreements and rules.
With many jurisdictions now requiring landlords to provide upfront disclosures about property fees, itemized receipts for security deposits, and detailed justifications for lease amendments, landlords are now motivated (and required) to create more transparent operational practices that will enhance tenant relations, and therefore, the desire to sign or extend leases. Additionally, with detailed justifications, fee transparency, and itemized safety deposits as the new standard, landlords are less likely to end up in court disputing property damage or lease agreements–giving them more protection and peace of mind.
Tips for Navigating 2025 Rental Regulations
- Stay Up-to-date: Regularly review state and local rules and requirement publications. In addition, attend local meetings or webinars discussing 2025 rental rules and regulations.
- Review Lease Agreements: Update current lease agreements to reflect any new or upcoming changes. Ensure you meet all legal standards regarding tenant approval and transparency practices, clearly outlining all fees and expectations for the tenant.
- Seek Professional Advice: If at any time the process or literature seems too complex, don’t hesitate to hire a legal advisor or property management professional who specializes in your state’s Landlord-Tenant Act and its laws.
New rental regulations in 2025 offer several unique opportunities for flexible, savvy investors. By staying informed about the latest tenant protections, rent control policies, sustainability requirements, zoning and ADU laws, and transparency requirements, investors can simplify rental property compliance while generating more demand and control over their properties. To thrive in 2025, take a proactive approach and adopt these changes by staying up-to-date. Adjust your leases and procedures to meet the needs of evolving policy updates. And, as always, don’t hesitate to reach out to industry professionals to ensure you remain informed, compliant, and successful throughout 2025.
CIVIC: Your Capital Partner for Passive Income Investment Success
If you’re ready to conquer the latest rental regulations and grow your long-term portfolio in 2025, CIVIC is here to help. Our team of industry experts provides knowledge, insights, and capital to buy, renovate, rent, and operate rental properties successfully.
Our Single Rental loan and Rental Portfolio loan options provide:
- Competitive 30-year term loan options
- Maximum rental flexibility
- SFR, warrantable condos, townhomes, PUD, and 2-4 units eligibility
- DSCR blanket loan with no W2s, paystubs, or tax returns required
CIVIC delivers simple, honest, and reliable lending solutions for real estate investors. With flexible terms and rates as well as prepayment options, we provide the capital and agility to get your property updated and market-ready–fast.
Want to partner with the market’s simplest and most reliable rental property capital provider? Fill out this form to schedule a FREE consultation today!
