2026 Rental Law Changes: How to Protect Your Investment in California

As we approach 2026, both landlords and tenants in California need to be aware of some meaningful advances in state rental law. These changes impact how you manage, lease and maintain rental properties and if you’re proactive, you can turn them into opportunities rather than headaches.

Here’s what’s coming, what it means for you, and how Strategic Growth Real Estate recommends you prepare.

What’s Changing in 2026

Several new or enhanced laws will affect residential tenancies in California. Key items to watch:

1. Appliance requirement Assembly Bill 628 (“AB 628”)

   Beginning January 1, 2026, units subject to new leases, lease renewals or amendments must include a working stove and refrigerator as part of the landlord-provided amenities.

   • The law amends California Civil Code § 1941.1 to classify those appliances among the “habitable” requirements.

   • If the appliances are faulty or under manufacturer recall, they must be repaired or replaced (in some cases within a 30-day window).

   • There are exemptions (for example, housing with shared kitchens or certain supportive-housing models), but many typical rentals in Los Angeles and surrounding counties will be covered.

   • For landlords, this means auditing your units now (if you haven’t already) so that any lease executed on or after 1 Jan 2026 is compliant.

     
     

2. Fee and disclosure transparency likely via Assembly Bill 1248 (“AB 1248”)

   Though some details are still being finalized, for new tenancies starting Jan 1 2026 there’s a requirement to clearly disclose all required fees, optional services, and the durations of any promotional rents or discounts.

   • Utility-billing practices (especially ratio utility billing) may be restricted or require specific disclosures.

   • Landlords and property managers should begin auditing advertisements and leases now to ensure full transparency of all fees and services.

   
   

3. Continuation of existing rent-cap + just-cause protections under California Tenant Protection Act & related law

   While the focus is often on new laws, many landlord/tenant protections remain in force and need consistent compliance:

   • Rent increases are capped (for covered units) at “5% plus the CPI or 10% whichever is lower” in any 12-month period.

   • Many units also require “just cause” for eviction, depending on local and state rules, so you’ll want to verify coverage for every property. (While this blog can’t cover every local ordinance, you should check your city/county.)

   • Security deposit photo documentation (move-in, move-out, post-repair) is strongly emphasized under recent law and guidance.

Why These Changes Matter and How They Create Opportunity

• For landlords/investors: At first glance, added compliance may feel like another cost. But in reality the smart investor views this as risk-management. Ensuring each unit meets habitability standards (including a stove & fridge) reduces the chance of disputes, lawsuits, repair backlogs, or extended vacancy waiting for compliance. It also boosts the marketability of the unit today’s tenants care about move-in ready units.

  Furthermore, transparent fee disclosures build trust, reduce negotiation friction and help you avoid regulatory surprises. Documenting deposits and repairs helps the owner maintain full control of the deduction process and avoids claims of unfair practices.

• For tenants: These laws reinforce what many tenants expect anyway that a rental property should allow self-catered living. They also boost transparency, so you know what fees you’re paying and landlords cannot spring hidden costs at lease-signing.

Strategic Growth Real Estate’s 5-Point Prep Checklist

Here’s our recommended action plan tailored to ensure readiness and protect your investment.

Strategic Growth Real Estate’s 5-Point Prep Checklist:

1. Audit all units now

   Walk through every lease expiring in or after 2026 and flag whether the unit meets the new stove & fridge requirement. If a unit lacks one or both appliances, plan installation now (or schedule for early 2026 before lease renewal).Simultaneously, review all ads, listings and lease documents: do they list every fee? Are optional services clearly labelled? Are discounts shown with the post-discount price?

   
   

2. Update lease templates and addenda

   • Include language that confirms the stove & refrigerator are provided and in working order.

   • If you allow a tenant to provide their own refrigerator (under the narrow exception allowed by AB 628), include a clearly signed opt-in form.

   • Ensure fee disclosures are upfront: what services are required, what are optional, and what post-discount price applies (if there is one).

   
   

3. Budget for equipment and maintenance

   Especially for older buildings in LA, many units may not yet have a landlord-supplied refrigerator or stove (or the appliance may be near end-of-life). Reserve funds now for installation or replacement. Also set up rapid response protocols for appliance failures if an appliance fails, you’ll want repair/replacement swiftly to avoid habitability claims.

   
   

4. Train your team and vendors

   Property managers, leasing staff, maintenance vendors and accounting/marketing teams all should be briefed on the new laws and workflow changes:

   • Leasing: update ad language, reveal full fee schedule, include post-discount pricing.

   • Maintenance: procedures for appliance inspection, repair or replacement.

   • Accounting: track fee disclosures, document reason for deposit deductions, keep photo documentation (as per AB 2801 style rules) even if that law is already in effect.

     
     

5. Communicate proactively with tenants

   For units you plan to renew or lease in 2026: send a proactive communication to tenants explaining your commitment to the updated standards (e.g., “As part of the new California habitability law, we will be providing and maintaining a stove & refrigerator”). This builds goodwill, positions you as a proactive partner and may reduce negotiation friction or tenant resistance during renewals.

Final Thoughts: Turning Compliance into a Competitive Advantage

At Strategic Growth Real Estate, we believe that regulatory change doesn’t need to be something to fear when handled strategically, it becomes a differentiator. Landlords who move before the January 1 2026 effective date of major changes will stand out in the Los Angeles rental market.Think of it this way: a clean, well-equipped unit (with stove & fridge, transparent fee structure, and clear documentation) attracts better tenants, reduces turnover, avoids disputes, and enhances long-term cash-flow stability.

Tenants increasingly expect professionalism and high standards. For property owners, the best protection is preparedness.

If you own rental property in California and would like help auditing your units, upgrading your leases or documenting your workflows ahead of 2026, Strategic Growth Real Estate is here for you. Let’s turn the law into an asset.

Sources & further reading

• “Landlords, Take Note: California Sets Clear Appliance Rules for 2026 Leases” (Husch Blackwell) huschblackwell.com

• “Do California Landlords Have To Provide Appliances? Guide for 2025-26” (Coastline Equity) coastlineequity.net

• “2026 California Rental Laws Coming: What Landlords Need to Know” (Chooser MG) choosermg.com

• “New Landlord Tenant Law for 2026” (Exceptional PM) exceptionalpm.com

• “Know Your Rights as a California Tenant” (California Dept. of Justice) oag.ca.gov