California Real Estate Laws 2026: What Landlords and Investors Need to Know

Major California Real Estate Laws for 2026

AB 628: Working Stoves and Refrigerators

For leases entered into, amended, or extended on or after January 1, 2026, most rentals must include a working stove and refrigerator. A tenant may supply a refrigerator only by choice and under a compliant written lease provision. Recalled appliances must be repaired or replaced within 30 days after notice.

Example: At a 2026 renewal, an owner cannot leave a broken refrigerator in place and require the resident to replace it. A unit that substantially lacks required appliances may be considered untenantable.

AB 1414: Internet Service Opt-Outs

For tenancies that start, renew, or continue month-to-month on or after January 1, 2026, residents may opt out of third-party internet, cellular, or satellite subscriptions tied to the tenancy.

Example: A building may offer a $60 internet package, but a resident may decline it. If the fee continues, the tenant may deduct that cost from rent. Retaliation is prohibited.

AB 414: Security-Deposit Delivery

Deposits still generally must be returned with an itemized statement within 21 days after move-out. If the owner received the deposit or rent electronically, the remaining deposit generally must be returned electronically unless the parties agree in writing to another method. Multiple adult tenants may also agree on how to divide the refund.

Example: Roommates may direct separate percentages to different accounts. Bad-faith retention may bring actual damages plus statutory damages of up to twice the deposit.

AB 246: Social Security Hardship Defense

Through January 20, 2029, a tenant may raise a defense in a nonpayment eviction when federal action or inaction delays, reduces, or stops household Social Security benefits through no fault of the tenant. A court may pause the case until 14 days after benefits return or for up to six months.

Example: Rent is not forgiven. The resident must pay the balance or enter a payment plan within 14 days after benefits return. Owners should have counsel review affected cases.

AB 325: Pricing Algorithms

AB 325 bars the use or distribution of a common pricing algorithm as part of an agreement or conspiracy that restrains trade. It also prohibits pressuring another party to adopt the algorithm’s recommended price. The law targets systems using competitor data, not every property-management tool.

Example: Operators should not use shared nonpublic competitor data to coordinate rents. A proven Cartwright Act violation may bring triple damages, attorney fees, and major criminal fines.

SB 721 and AB 2579: Balcony Inspections

The first inspection deadline for covered multifamily buildings was January 1, 2026. The rule generally covers buildings with three or more units and wood-supported exterior elements more than six feet above ground. Inspections repeat every six years.

Example: A 20-unit building with second-story wood balconies should already have a compliant report. Continued failure to complete required repairs can bring penalties of $100 to $500 per day and a building-safety lien. Owners who missed the deadline should treat the inspection as overdue.

SB 79: Transit-Oriented Development

Beginning July 1, 2026, SB 79 allows qualifying projects of at least five units near certain transit stops on residential, mixed-use, or commercial sites. Projects must still meet affordability, anti-displacement, safety, and other standards.

Example: A commercial parcel near a qualifying rail station may support more housing than older zoning allowed. This creates a possible investment opportunity, but it does not guarantee project approval.

AB 851: Fire-Area Purchase Restrictions

During 2026, AB 851 restricts unsolicited offers to buy residential property in specified Los Angeles and Ventura County ZIP codes affected by the 2025 fires. Properties publicly listed or marketed for sale are treated differently.

Example: An investor should not cold-call an owner in a covered ZIP code unless the property has been publicly offered for sale. Violations can bring civil penalties of up to $25,000 per offer, misdemeanor penalties, licensing consequences, and a seller’s right to cancel the agreement.

Guidance for Property Owners

Review all 2026 leases and addenda. Audit appliances, internet billing, deposit procedures, pricing vendors, and eviction files. Confirm balcony inspection status and keep inspection reports in the property’s permanent records.

Before buying or developing property, check both statewide requirements and the rental laws California cities enforce locally. Owners should also have legal counsel review lease forms and eviction notices when a new law affects the property.

2026 Compliance Checklist

• Update leases for appliance and internet opt-out rules.
• Test appliances before move-in or lease renewal.
• Return deposits correctly within 21 days.
• Review pricing software and data-sharing practices.
• Flag Social Security hardship claims before eviction.
• Confirm balcony inspection and repair status.
• Check SB 79 before valuing transit-area sites.
• Screen purchases in covered wildfire ZIP codes.
• Review local rent, notice, relocation, and registration rules.

The Bottom Line

The investor regulations California owners face in 2026 require updated documents, trained staff, and strong recordkeeping. Mistakes can lead to rent deductions, delayed evictions, deposit damages, daily fines, or serious antitrust exposure.

Beach Front Property Management helps Southern California owners manage leasing, maintenance, compliance, resident communication, and property operations. Visit www.bfpminc.com or email info@bfpminc.com to speak with a property management professional.