California Property Management Laws Every Owner Should Know in 2026

California property management laws continue to grow more detailed. Property owners must consider statewide requirements, federal fair housing rules, and city-specific ordinances that may affect how a rental property is operated.

In 2026, important updates involve security deposit returns, required appliances, documentation, rent increases, and termination procedures. Requirements can also differ based on a property’s location, age, ownership structure, and number of units.

Understanding these rules may help owners reduce compliance risk, maintain better records, and make more informed decisions about their rental portfolios. Because laws and local ordinances can change, property-specific questions should be reviewed with qualified legal counsel.

Important California Rental Law Updates for 2026

Two statewide changes are especially important for property owners in 2026.

Working Stoves and Refrigerators

For leases entered into, amended, or extended on or after January 1, 2026, California law generally includes a working stove and refrigerator among the conditions required for a dwelling to be considered tenantable.

The appliances must be maintained in working order and capable of safely cooking or storing food. The law includes specific exceptions and permits a resident and owner to agree that the resident will provide a refrigerator under certain conditions. An owner generally cannot make providing a refrigerator a condition of approval. (LegInfo)

Owners may need to update:

• Lease templates and appliance addenda
• Move-in inspection procedures
• Appliance maintenance records
• Vendor and replacement procedures
• Recall-monitoring practices

Properties with leases being renewed or modified in 2026 should be reviewed to determine whether the requirement applies.

Electronic Security Deposit Returns

Beginning January 1, 2026, California’s updated security deposit law addresses electronic refunds. When an owner received the deposit or rental payments electronically, the remaining deposit generally must be returned electronically to an account designated in writing by the resident, unless another method is agreed to in writing.

The law also includes written-notice requirements concerning the option to receive the deposit electronically. (LegInfo)

Owners should review their accounting software, move-out forms, banking procedures, and written notices to confirm that their process reflects the updated requirements.

California Security Deposit Regulations

California generally limits residential security deposits to one month’s rent, in addition to the first month’s rent.

A limited exception may allow certain small property owners to collect up to two months’ rent. To qualify, the owner generally must be a natural person—or an eligible limited liability company made up entirely of natural persons—and own no more than two residential rental properties containing no more than four total units offered for rent. Additional restrictions apply, including rules involving service members. (LegInfo)

Security deposit compliance also depends on documentation.

For tenancies beginning on or after July 1, 2025, owners must take photographs immediately before or at the start of the tenancy. Owners must also photograph the unit after possession is returned, before deductible repairs or cleaning, and again after that work is completed.

Remaining funds and an itemized statement generally must be provided within 21 calendar days after the resident vacates. Supporting invoices, receipts, labor information, and photographs may also be required when deductions are taken. (LegInfo)

A consistent move-in and move-out process can help owners document the difference between property damage and ordinary wear.

Rent Increase Rules Under AB 1482

California’s Tenant Protection Act, commonly associated with AB 1482, limits many annual residential rent increases.

For covered properties, the maximum increase over a 12-month period is generally:

5% plus the applicable change in the cost of living, or 10%, whichever is lower.

When the same resident remains in possession, the rent generally cannot be increased in more than two increments during a 12-month period. (LegInfo)

However, not every rental property is covered. Exemptions may apply to:

• Certain newer housing
• Some separately transferable homes and condominiums
• Qualifying owner-occupied duplexes
• Deed-restricted affordable housing
• Properties already subject to stricter local rent controls

Some exemptions also require specific written language in the lease. An exemption should not be assumed based only on the property type.

Owners should calculate increases using the correct regional Consumer Price Index period, review the lowest rent charged during the prior 12 months, and confirm whether a local ordinance imposes a lower limit.

Fair Housing and Anti-Discrimination Requirements

Fair housing compliance applies throughout the rental process, including advertising, application screening, leasing, rule enforcement, reasonable-accommodation requests, renewals, and termination decisions.

California law protects numerous characteristics, including race, color, national origin, religion, disability, sex, gender identity, sexual orientation, familial status, marital status, age, military or veteran status, and source of income.

Source-of-income protections include the use of government rental assistance, such as Housing Choice Vouchers. Housing providers generally cannot refuse to participate solely because an applicant uses qualifying rental assistance. (Civil Rights Department)

Owners can reduce fair housing risk by using:

• Written screening standards
• Consistent income calculations
• Standard application procedures
• Approved advertising language
• Documented accommodation-review procedures
• Regular employee and vendor training

Policies should be applied consistently while still allowing for legally required individual consideration.

Habitability and Maintenance Responsibilities

California habitability rules require owners to maintain basic building and unit conditions. These generally include weather protection, working plumbing, hot and cold water, heating, electrical systems, sanitation, waste receptacles, and safe floors, stairways, and railings.

For leases entered into, amended, or extended beginning in 2026, the stove and refrigerator requirements may also apply. (LegInfo)

A practical maintenance program may include:

1. A central system for receiving repair requests
2. Clear emergency-response procedures
3. Written vendor work orders
4. Before-and-after photographs
5. Invoice and inspection records
6. Follow-up confirmation after work is completed

Response times may depend on the condition, severity, access, vendor availability, and applicable legal requirements. Owners should avoid using a single response timeline for every type of maintenance request.

Lease Disclosures and Documentation

A written rental agreement should clearly identify the parties, property, rent, deposit, payment process, utilities, occupancy terms, maintenance contacts, and property rules.

Depending on the property, California agreements may also require disclosures involving bed bugs, flood hazards, the authorized property manager, accepted payment methods, and the Tenant Protection Act. (California Department of Real Estate)

Most pre-1978 housing is also subject to federal lead-based paint disclosure requirements. Owners and property managers may need to provide required information, available records, and the approved lead-hazard pamphlet before the lease is signed. (US EPA)

Lease documents should be reviewed regularly. Reusing an older form may result in missing disclosures, outdated statutory language, or terms that conflict with current law.

Eviction and Notice Requirements

California owners generally must provide the legally required written notice before filing an unlawful detainer case. The correct notice depends on the reason for termination, the type of tenancy, the length of occupancy, and applicable local rules. (Self-Help Center)

For many covered properties, statewide just-cause protections apply after the required occupancy period. Just cause may be at-fault, such as nonpayment of rent or a material lease violation, or no-fault, such as a qualifying owner move-in, withdrawal from the rental market, government order, demolition, or substantial remodel.

No-fault terminations may require relocation assistance or a final-month rent waiver. Notices must include specific information, and local ordinances may provide greater protections or higher relocation amounts. (LegInfo)

Because small errors in wording, timing, service, or supporting documentation can affect a case, owners should obtain legal review before serving a termination notice.

Property Inspection and Entry Rules

California law limits when an owner or property manager may enter an occupied unit.

Permitted reasons generally include:

• Emergencies
• Necessary or agreed-upon repairs
• Required services
• Showing the unit to qualified parties
• Abandonment or surrender
• A court order
• Certain legally authorized inspections

Except for emergencies and other limited situations, reasonable written notice is generally required. Twenty-four hours is presumed reasonable in many circumstances, and entry should normally occur during business hours. The notice should state the date, approximate time, and purpose of entry. (LegInfo)

Routine inspection policies should be based on a lawful purpose rather than an unrestricted right to enter.

Local City Regulations Owners Should Review

State law is only one part of California landlord compliance. Cities and counties may have additional requirements involving:

• Rent stabilization
• Just-cause termination
• Relocation payments
• Rental registration
• Property inspections
• Seismic or balcony inspections
• Short-term rentals
• Business licensing
• Notice filing
• Affordable housing restrictions

For example, the City of Los Angeles Rent Stabilization Ordinance regulates rent increases and evictions for covered properties. The city also has separate protections for certain units outside the RSO. (Housing Department)

Long Beach operates a Proactive Rental Housing Inspection Program intended to support compliance with local property standards. It also has local requirements related to substantial-remodel terminations. (Long Beach City)

Owners with properties in several cities may need a separate compliance checklist for each jurisdiction.

How Professional Property Management Can Support Compliance

Professional property management may help owners establish repeatable systems for leasing, maintenance, accounting, inspections, notices, and recordkeeping.

A management company may assist with:

• Updating lease forms and required addenda
• Tracking rent increase dates
• Coordinating maintenance and inspections
• Maintaining deposit documentation
• Monitoring local regulatory changes
• Training leasing and management employees
• Organizing records for owner review
• Coordinating with legal counsel when needed

Property management does not replace legal advice. It can, however, help owners maintain organized procedures and identify situations that may require further review.

Keep Your California Portfolio Prepared

California property management laws affect nearly every part of rental operations. In 2026, owners should pay close attention to appliance standards, electronic security deposit returns, inspection photographs, rent calculations, fair housing procedures, and local regulations.

A proactive compliance review may help identify outdated lease forms, incomplete records, and operational gaps before they become larger issues. The right process will depend on the property, location, ownership structure, and applicable legal requirements.

Visit www.bfpminc.com or email info@bfpminc.com to speak with a Beach Front Property Management professional about managing your Southern California rental portfolio.