Key Rental Legislation Updates in California for 2026

Key Rental Legislation Updates in California for 2026

As we enter 2026, California’s rental housing landscape is changing in meaningful ways. A series of legislative updates have taken effect that directly impact how landlords operate, manage risk, and comply with state law. Staying informed and prepared today can help you avoid costly penalties and protect your investment.

1. Appliance Mandate: Working Fridge & Stove Required (AB 628)

Effective January 1, 2026, landlords must provide and maintain a working refrigerator and stove in rental units covered by new or renewed leases. These appliances are now considered essential to habitability.

What this means for you:

• Appliances must be operational at the start of the lease.
• Repairs or replacements must be handled promptly if appliances fail or are recalled.
• Tenants may use their own appliances only with mutual written consent.
• Exceptions apply to units with shared kitchens or certain subsidized housing types.
  

Audit all units now to ensure compliance and budget for any necessary upgrades.

2. Security Deposit Reform (AB 414)

California has updated the process for returning security deposits to reflect modern payment methods.

Key changes include:

• Electronic deposits must be refunded electronically, unless both parties agree otherwise.
• Alternative deposit applications, like applying it to last month’s rent, are allowed with mutual consent.
• In multi-tenant units, refunds must be issued individually to each renter.

Review your deposit procedures and update lease templates to stay fully compliant.

3. Expanded Landlord Duties After Natural Disasters (SB 610)

SB 610 establishes new landlord responsibilities when units become uninhabitable due to natural disasters such as wildfires, earthquakes, or storms.

Landlord obligations now include:

• Removing debris and ensuring the property is safe and habitable.
• Pausing rent and other charges during mandatory evacuations or periods of uninhabitability.
  Returning prepaid rent and security deposits if units remain uninhabitable.
• Allowing displaced tenants to return once repairs are completed.
  

Update emergency procedures and build extra reserves to handle repairs and temporary housing needs.

4. Disclosure of Digitally Altered Real Estate Images (AB 723)

Assembly Bill 723 requires real estate agents to disclose when listing photos have been digitally altered and provide original, unedited images alongside listings. Effective January 1, 2026, this law ensures transparency and protects consumers from misleading advertising.

Review marketing and listing materials to ensure all images comply with disclosure requirements.

What This Means for Your Portfolio

To stay compliant and protect your investments, Earth Real Estate recommends:

• Auditing all units for appliance compliance.
• Updating lease templates, deposit procedures, and marketing disclosures.
• Budgeting for appliance replacements, disaster contingencies, and compliance costs.
• Partnering with a professional property management team to ensure ongoing compliance and smooth operations.
  

Staying informed today makes property management easier tomorrow. With the right planning and professional support, you can navigate California’s 2026 rental law changes confidently and keep your portfolio thriving. Contact us to learn how we can support your properties in 2026 and beyond.