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California Rental Law Changes Effective January 1, 2026: What Landlords and Tenants Need to Know

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California's rental landscape is evolving with three key bills- AB 628, AB 414, and AB 1414- taking effect January 1, 2026. These updates focus on habitability standards, security deposit handling, and tenant choice in services. This overview draws from official bill summaries and property management analyses; it is for informational purposes only and not legal advice. Consult an attorney or official state resources for your specific situation.

AB 628: Appliances as Habitability Essentials

AB 628 amends Civil Code §1941.1 to require landlords to provide and maintain a working stove (or oven) and refrigerator in rental units covered by new, renewed, or amended leases starting January 1, 2026.

Key requirements:

  • These appliances must be safe and functional to meet basic habitability standards.

  • Landlords must repair or replace them promptly, including any recalled units.

  • Tenants may supply their own refrigerator if documented in writing via a lease addendum.

  • Tenants may opt out for their own refrigerator via specific lease language: “Under state law, the landlord is required to provide a refrigerator in good working order in your unit. By checking this box, you acknowledge that you have asked to bring your own refrigerator and that you are responsible for keeping that refrigerator in working order.” However, tenants can revoke this with 30 days' written notice, requiring the landlord to then provide one within 30 days.

This applies to most residential rentals but excludes properties with communal kitchens or certain subsidized housing.

AB 414: Electronic Security Deposit Refunds

AB 414 updates Civil Code §1950.5 to align deposit refunds with modern payment methods, effective for tenancies ending on or after January 1, 2026.

Main provisions:

  • If rent or deposits were paid electronically (e.g., bank transfer, Zelle), refunds default to electronic methods unless both parties agree otherwise in writing.

  • Itemized deduction statements may be sent via email with tenant consent.

  • For multi-tenant units, refunds go via a single check or transfer absent a written alternative.

This streamlines move-outs while maintaining transparency and auditability.

AB 1414: Tenant Right to Opt Out of Bulk Internet

AB 1414 empowers tenants to decline landlord-provided internet or cable services included in their lease, promoting competition and choice.

Core rules:

  • Tenants can submit written notice to opt out of bulk wired, satellite, or cellular plans.

  • Landlords must remove associated fees from billing upon request.

  • Applies to rentals where internet is part of the agreement, including multifamily bulk deals.

  • Landlords retain flexibility for bulk offerings but must honor opt-outs promptly.

Application Timeline: Staggered, Not Immediate.

These laws phase in rather than applying universally on day one:

  • New leases after January 1, 2026: Full compliance required.

  • Renewals or amendments to existing leases: New rules apply.

  • Month-to-month tenancies: Treated as renewals post-January 1.

Exceptions may cover owner-occupied duplexes, SROs, extended-stay hotels, or local ordinances.

Action Steps for Property Owners and Managers

To prepare:

  • Update lease templates with compliant language on appliances, deposits, and opt-outs.

  • Document tenant-provided refrigerators via addenda before renewals.

  • Audit payment systems for electronic refunds and train staff.

  • Review bulk internet contracts and create opt-out processes.

How Bear Flag Realty's Property Management Can Assist

Navigating these changes doesn't have to be overwhelming. Our team at Bear Flag Realty & Home Loans monitors updates, revises documents, ensures compliance, and handles tenant communications. Contact us to discuss how we can support your rentals seamlessly.

Sources: California Legislative Information, APT News, Property Management Pleasanton, Mesa Properties, Zego, Letsonboard, and related analyses (2025).

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