In 2025, California introduced several new landlord-tenant laws designed to increase transparency, strengthen tenant protections, and modernize housing practices. One of the most significant changes for rental property owners, managers, and tenants alike is Assembly Bill 2898 (AB 2898), also known as the Unbundled Parking Agreements law.
This new requirement may sound technical at first, but it carries important implications for how parking is offered, paid for, and enforced in rental agreements across the state. Whether you are a landlord trying to stay compliant, or a tenant curious about how this law affects your lease, this blog will break down everything you need to know about unbundled parking agreements in California.
What Is AB 2898?
AB 2898 is a new California law that requires landlords and property managers to “unbundle” parking agreements from rental leases. In simple terms, this means that parking arrangements—such as assigning a parking spot, charging for parking, or granting access to a garage or lot—must now be set up as a separate agreement from the lease for the rental unit itself.
In the past, many landlords included parking terms directly in the lease. For example, a one-bedroom apartment might rent for $2,000/month, which included one assigned parking space. If a tenant failed to pay for that parking space, the landlord could potentially pursue eviction for non-payment of rent.
Under AB 2898, that is no longer allowed. Parking agreements can no longer be directly tied to the rental lease in a way that makes parking non-payment a cause for eviction. Instead, parking must be treated as an independent contract or addendum.
Why Was This Law Passed?
The primary goal of AB 2898 is tenant protection. Lawmakers wanted to ensure that tenants would not face the risk of eviction over something non-essential to their housing—like parking—especially in areas where parking availability is scarce or expensive.
This shift also aligns with broader California housing policy goals, such as:
- Encouraging public transit use: By separating parking from housing, tenants who don’t own cars are not forced to pay for parking they don’t need.
- Improving housing affordability: Parking costs can significantly increase rent. Unbundling allows tenants to opt out and save money.
- Promoting fair housing practices: Landlords must now treat parking as an optional service, reducing disputes around bundled pricing.
What Does This Mean for Landlords?
For property owners and managers, AB 2898 requires some practical adjustments in how leases are drafted, structured, and enforced. Here are the key points landlords need to understand:
1. Parking Agreements Must Be Separate
- Parking spaces, garages, and related amenities must be documented in a standalone agreement or addendum that is distinct from the residential lease.
- Rent for the unit and charges for parking cannot be lumped together in one figure.
2. Non-Payment of Parking Is Not Grounds for Eviction
- A tenant who does not pay for parking cannot be evicted for “non-payment of rent.”
- Landlords can pursue unpaid parking fees through other legal means (such as small claims court), but not through eviction.
3. Clear Documentation Is Required
- All terms related to parking—such as fees, assigned spaces, rules, and penalties for violations—must be clearly stated in the separate agreement.
- This protects both landlords and tenants by creating transparency.
4. Adjustments to Leasing Practices
- Leasing teams and property managers must update their lease templates, software, and rental processes to comply with the law.
- Staff should be trained to explain the separation of rent and parking fees to prospective tenants.
What Does This Mean for Tenants?
Tenants also gain new rights and flexibility under AB 2898. Here’s how the law impacts renters:
1. More Affordable Housing Options
- Tenants who do not own cars or do not need parking will no longer be forced to pay for it as part of their rent.
- This could lower monthly housing costs for many renters in dense urban areas.
2. Greater Transparency
- Parking fees are spelled out separately, making it easier for tenants to understand exactly what they are paying for.
3. Reduced Eviction Risk
- A missed parking payment can no longer result in eviction, ensuring tenants don’t lose their homes over a non-essential amenity.
Practical Examples of Unbundled Parking
To better understand how AB 2898 works in practice, let’s look at a few scenarios:
Example 1: Traditional Lease (Before AB 2898)
- Lease states: “$2,400/month includes apartment rent and one parking space.”
- Tenant fails to pay $100 of the total (the parking portion). Landlord may pursue eviction for non-payment of rent.
Example 2: Unbundled Lease (After AB 2898)
- Lease states: “$2,300/month for apartment rent.”
- Separate parking agreement states: “$100/month for one assigned parking space.”
- Tenant fails to pay $100 for parking. Landlord may pursue unpaid fees through civil collection methods, but cannot evict the tenant for non-payment of rent.
Benefits of Unbundled Parking Agreements
While this law may feel like a challenge for landlords at first, it can actually create benefits for both sides:
- For Landlords: Clearer documentation, better tenant relationships, and potential to reallocate parking spaces for tenants who truly need them.
- For Tenants: Lower housing costs, more choice, and less risk of eviction tied to parking.
- For Communities: Encouragement of sustainable transportation, reduced traffic congestion, and more equitable housing pricing.
Challenges and Considerations
Of course, AB 2898 also introduces new complexities:
- Administrative Burden: Landlords must update leases, accounting systems, and staff training.
- Collection of Parking Fees: Since unpaid parking can’t be handled through eviction, landlords may need to pursue small claims or use collection agencies.
- Market Adjustments: In high-demand areas, landlords may face challenges managing limited parking availability fairly among tenants.
How EGL Properties Helps Owners Stay Compliant
At EGL Properties, we understand how quickly California’s rental laws can change—and how critical it is for property owners to remain compliant. Our team provides:
- Updated lease agreements that reflect the latest state requirements.
- Clear documentation and addendums for unbundled parking agreements.
- Tenant communication support, ensuring residents understand their rights and responsibilities.
- Ongoing compliance monitoring, so owners avoid costly legal disputes.
By working with a professional property management company like EGL, owners can rest assured that their properties are being managed in line with California’s complex and evolving legal framework.
Conclusion
Unbundled parking agreements under AB 2898 mark a significant shift in California landlord-tenant law. For landlords, it means new administrative processes and the need for careful documentation. For tenants, it offers more affordability, flexibility, and protection.
While adjusting to this change may require effort, it also creates opportunities for greater transparency and fairness in housing. By separating parking from housing costs, California is moving toward a more flexible rental system that better reflects tenants’ diverse needs.
At EGL Properties, our goal is to help owners and tenants navigate these changes smoothly. From drafting compliant agreements to managing tenant communications, we provide the expertise and support you need to keep your rental operations running legally and efficiently.
If you’re a property owner with questions about AB 2898 or other new laws, contact EGL Properties today. Our team is here to guide you through California’s ever-changing rental landscape.