California Rental Laws 2026: What Property Owners and Real Estate Investors Need to Know

California Rent Increase Limits in 2026

California’s Tenant Protection Act limits rent increases for many rental properties. For covered units, an owner generally cannot increase rent by more than 5% plus the change in the cost of living or 10%, whichever is lower, during a 12-month period.

For increases taking effect from August 1, 2026, through July 31, 2027, the current statewide limits include:

• Los Angeles and Orange counties: 8.7%
• Riverside and San Bernardino counties: 8.1%
• San Diego County: 8.2%
• Other California counties: generally 8.6%, unless a separate regional calculation applies

These percentages do not mean every property can receive that increase. Local rent stabilization laws may set a much lower limit. (California Attorney General)

Local Rent Control Can Override the State Limit

A property in the City of Los Angeles is a good example.

For units covered by the Los Angeles Rent Stabilization Ordinance, the allowable annual increase is 3% from July 1, 2026, through June 30, 2027. This is lower than the 8.7% state limit for covered properties in Los Angeles County. (California Attorney General)

This is why property owners should check the rules for the exact property address before sending a rent increase notice.

New Stove and Refrigerator Requirements Under AB 628

One of the most important changes to California rental laws 2026 involves basic kitchen appliances.

Under AB 628, leases entered into, amended, or extended on or after January 1, 2026, generally require the rental unit to have:

• A stove in good working order that can safely be used for cooking
• A refrigerator in good working order that can safely store food

There are exceptions for certain properties, including some permanent supportive housing, single-room occupancy units, residential hotels, and housing with shared kitchens. (LegiInfo)

A resident and property owner may also agree that the resident will provide their own refrigerator. However, the law includes specific lease requirements, and an owner cannot make providing a refrigerator a condition of renting the unit.

If a provided stove or refrigerator is recalled, the law generally requires the owner to repair or replace it within 30 days after receiving notice of the recall. (LegiInfo)

Example

Suppose an owner signs a new lease for an apartment in February 2026. Unless an exception applies, the unit generally needs a working stove and refrigerator when covered by AB 628.

That makes appliance inspection an important part of the move-in process.

Security Deposit Rules Property Owners Should Know

California generally limits security deposits to one month’s rent for residential rentals. A narrow exception allows certain small property owners to collect up to two months’ rent when specific ownership and property-size requirements are met. (LegiInfo)

California also requires owners to document unit conditions with photographs. Move-out photo requirements began in April 2025, while move-in photo requirements apply to tenancies beginning on or after July 1, 2025. These rules remain important in 2026. (LegiInfo)

AB 414 Changes How Some Deposits Are Returned

AB 414 adds another requirement in 2026.

If an owner received the security deposit or rental payments electronically, the remaining security deposit generally must also be returned electronically unless the parties agree in writing to another method.

The existing 21-calendar-day deadline for returning the remaining deposit and providing the required itemized statement still applies. (LegiInfo)

For owners managing many units, a consistent move-out process can help. Photographs, invoices, repair records, refund information, and resident communications should all be kept together.

California Eviction Laws Still Require Careful Documentation

The Tenant Protection Act continues to require just cause for many covered residents after they have occupied a unit for 12 months.

State law recognizes both at-fault reasons, such as nonpayment of rent or a serious lease violation, and qualifying no-fault reasons, such as certain owner move-ins, withdrawal from the rental market, or substantial remodeling. Different notice and relocation requirements can apply depending on the reason and the property. (California Attorney General)

Local laws may provide additional protections, so an eviction process that is valid in one California city may require extra steps in another.

AB 246 Adds a Social Security Hardship Defense

AB 246 created the Social Security Tenant Protection Act.

Under the law, a resident facing an unlawful detainer case for unpaid rent may raise a Social Security hardship defense if household Social Security benefits were terminated, delayed, or reduced because of federal government action or inaction and that interruption prevented payment of rent.

If the court finds that the requirements are met, the eviction case may be temporarily stayed. The law does not erase the unpaid rent. After benefits are restored, the resident generally must pay the past-due amount or enter into an agreed payment plan within the timeframe provided by the law. (LegiInfo)

Residents Can Opt Out of Certain Internet Charges

AB 1414 affects properties that offer internet service through arrangements such as bulk billing.

For residential tenancies that begin, renew, or continue on a month-to-month or other periodic basis on or after January 1, 2026, residents must be allowed to opt out of paying for qualifying third-party internet subscriptions offered in connection with the tenancy.

Owners may still offer bulk internet arrangements. They simply cannot require residents to pay for the subscription when the law gives them the right to opt out. (LegiInfo)

Owners should review lease language and recurring charges to make sure internet fees are handled correctly.

New Disaster-Related Rental Requirements

Wildfires, floods, and other disasters can create complicated questions about habitability, rent, and returning to a property.

SB 610 adds clearer requirements for disaster-damaged rental housing. After a qualifying declared disaster, owners may have responsibilities to remove debris and address hazards such as smoke residue, ash, mold, asbestos, or water damage within a reasonable time.

Unless the tenancy has been legally terminated, residents generally have a right to return at the same rental rate once returning is safe and practical. (LegiInfo)

The law also provides that when a resident cannot occupy the rental because of a mandatory evacuation order tied to a qualifying disaster, the rent obligation is discharged for that evacuation period. Rules also apply to rent that was paid in advance. (LegiInfo)

For Southern California property owners, emergency plans should include documentation, resident communication, inspections, remediation records, and procedures for handling rent during mandatory evacuation periods.

Los Angeles Rental Laws Changed in 2026

Owners with Los Angeles properties need to look beyond statewide rules.

The City of Los Angeles made changes to its Rent Stabilization Ordinance effective February 2, 2026. The city changed how future annual rent adjustments are calculated, while the current allowable increase for covered RSO units remains 3% for the July 1, 2026, through June 30, 2027 period.

The city also eliminated the previous additional percentage increases tied to landlords providing gas or electricity for RSO units. (City Clerk LA)

The important lesson is simple: California rental laws 2026 are only the starting point. Owners must also check city and county requirements.

A 2026 Compliance Checklist for Property Owners

Property owners can reduce risk by reviewing a few key areas across their portfolios:

• Confirm whether each property is covered by state or local rent control.
• Check the correct rent increase limit before serving a notice.
• Update lease forms for 2026 appliance and internet requirements.
• Inspect working stoves and refrigerators when applicable.
• Maintain move-in and move-out photographs.
• Review electronic security deposit refund procedures.
• Keep accurate maintenance, repair, notice, and communication records.
• Review eviction documents carefully before beginning a case.
• Create procedures for wildfire, flood, and other disaster situations.
• Check local laws whenever managing properties in different cities.

A process that works for one building may not work for another, especially when properties are located in different California jurisdictions.

Stay Current With California Rental Laws in 2026

Managing rental property in California requires more than knowing one statewide rule. Rent limits, security deposits, appliances, internet charges, evictions, disaster response, and local ordinances can all affect daily property operations.

For real estate investors with properties in several Southern California cities, keeping procedures consistent while accounting for local requirements can be especially challenging.

Beach Front Property Management helps property owners throughout Southern California manage leasing, resident communication, maintenance coordination, rent collection, documentation, and day-to-day property operations.

Visit www.bfpminc.com or email info@bfpminc.com to speak with a Beach Front Property Management professional today.