California’s New 2026 Laws: What Investors and Property Owners Need to Know
A series of new laws went into effect in California starting on January 2026 that will have a significant impact on property owners and investors. To help you navigate these changes, we’ve summarized the key regulations. Please note that this information is for general guidance only and does not constitute legal advice. For a complete understanding, we recommend reviewing the full text of the laws or consulting a qualified legal professional.
New Laws as of 2026
Mandatory Appliance Provision in Rental Units (AB628): Landlords must provide working refrigerators and stoves as part of standard habitability requirements in rental units. Landlords are also responsible for their upkeep or replacing them if they fail.
Post-Disaster Landlord Responsibilities (SB610): Several actions are taken into effect in the aftermath of a declared natural disaster. Landlords are responsible for the removal of debris from their property. Rent must be halted during mandatory evacuation orders. If a unit becomes uninhabitable, tenants may terminate leases without penalty and are entitled to return once safe. Landlords must notify tenants when repairs are done and units are habitable again.
Security Deposit Return Flexibility (AB414): Introduces new requirements around the handling of deposits. Landlords must return security deposits electronically if tenants request it. Parties can agree to non-traditional methods of returning a deposit.
State Rent Cap Rules Continue & Transition Mid-Year (AB1482 Framework): The statewide rent increase cap at 5% + regional CPI (up to 10%) under AB 1482 will continue through July 31, 2026. After that date, the statute expires, and new rules may replace or modify rent caps.
Transit-Oriented Housing Zoning Change (SB79): The statewide land-use reform mandates that allows for upzoning near public transit stations. It allows for wider allowance for multi-family housing up to mid-rise heights near transit stops. Preempts certain local zoning restrictions to encourage housing density. Will take effect on July 1, 2026.
What it Means for Investors
While we are not legal professionals, staying informed about these new regulations is essential. Just as consulting market experts is vital for sound investment decisions, seeking guidance from a legal professional is crucial for a comprehensive understanding of these laws. Awareness of these changes equips property owners and investors to make better-informed decisions in the dynamic and ever-evolving real estate market.
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