2026 Rental Law Update: What California Investment Owners Need to Know
If you own a tenant-occupied investment property in California, 2026 brings a few important rule changes you’ll want on your radar.
This isn’t meant to scare you—just to help you stay ahead of the curve so your property, leases, and systems are ready before renewals roll around.
Quick note: This is general information only and not legal advice. Always check with a California landlord-tenant attorney about your specific situation.
What’s Changing in January 2026?
Here are the big items most investment property owners should be aware of:
1. Stoves & refrigerators become “must-have” habitability items
For most new, renewed, or amended residential leases starting in 2026, landlords must provide a working stove and refrigerator in order for the unit to be considered legally habitable.
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You’ll want to budget for adding or upgrading these in any units that don’t already have them.
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There are limited exceptions, but for a typical single-family home, condo, or apartment, this will apply.
2. Security deposits get more structured (and more digital)
New rules clarify how you return security deposits and communicate with tenants, especially if they’ve paid you electronically.
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If rent or deposits are paid online, tenants may be able to receive refunds and itemized statements electronically as well.
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You’ll want your leases and systems to clearly spell out how the deposit will be returned and where statements should be sent.
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The familiar 21-day deadline to return deposits and provide an itemized statement still applies.
3. “Mandatory” bulk internet & tech fees face new limits
If you bundle internet, satellite, or certain tech services into your leases as a required monthly fee, tenants with new or renewed leases in 2026 may have the right to opt out of those bulk service charges.
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You can still negotiate building-wide packages,
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But you may not be able to force every tenant to pay for them separately.
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Clear lease language and a simple opt-out process will be key.
4. Special protections in the event of Social Security disruptions
There’s also a newer law that temporarily protects certain tenants (like seniors or disabled renters who rely on Social Security) from eviction for non-payment if there’s a declared interruption in federal benefits.
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It doesn’t erase rent owed, but it can delay eviction timelines and require payment plans once benefits resume.
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This is something to be aware of if you have residents in that category.
Don’t Forget: Recent Rules Still Apply
On top of the 2026 changes, a few recent laws are still very relevant:
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Security deposit caps: In most situations, California landlords are now limited to one month’s rent for security deposits, with very narrow exceptions for smaller “mom & pop” owners.
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Rent caps & just-cause eviction: Many properties in California remain subject to statewide rent caps and just-cause eviction requirements, along with any local protections.
If it’s been a while since you reviewed your leases or your property’s exemption status, this is the perfect time.
What This Means for You as an Investor
If you own a tenant-occupied property in Napa Valley (or anywhere in California), 2026 is a good checkpoint to:
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Review your appliance packages (stoves and refrigerators)
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Update lease templates for new compliance requirements
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Confirm your security deposit procedures and refund methods
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Revisit any “internet included” or tech fee language in your marketing and leases
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Make sure you have trusted legal and property management partners in place
A little prep now can prevent very expensive surprises later.
How I Can Help
In addition to my work representing buyers and sellers, I also offer property management and leasing services for investor clients.
I’m available to:
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Review your current leases for 2026 compliance
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Walk through your specific property and tenant mix
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Consult on an updated leasing and management strategy
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Build an ongoing management relationship if you’d like to be more hands-off
If you’d like to schedule a consultation to talk through your investment property and these upcoming changes, I’d be happy to sit down with you.
Stephanie Aven, REALTOR® DRE #01967507
Office Manager | Broker Associate
C. 714.401.2903 | O. 707.944.0888
[email protected]
Follow me on Instagram: @stephanielee4re
