You know the kind of month: a tenant gives notice, your fridge dies two days before the walkthrough, and accounting is chasing forwarding details so you can close out the deposit on time. Now layer in the 2026 rule changes, which turn those everyday moments into compliance traps if your process is even slightly off.
California is expanding the definition of “habitable” rental units for new and renewed leases starting January 1, 2026, how deposits must be returned when payments are made online, and how some nonpayment cases can become more complicated. This guide breaks down what to change before it costs you.
Key Takeaways
- Leases entered into, amended, or extended on or after January 1, 2026, generally require a landlord-provided, working stove and refrigerator to meet habitability standards.
- If you accepted rent or the deposit electronically, you generally must return the remaining deposit electronically unless you and the tenant agree in writing to another method.
- Some nonpayment evictions may encounter a new affirmative defense tied to qualifying interruptions in Social Security benefits, which can affect timing and strategy.
- Statewide rent cap and just-cause requirements remain in effect for many properties, and enforcement-oriented rules make accurate notices and documentation more important than ever.
Habitability Expands in 2026: Stoves and Refrigerators (AB 628)
One of the biggest day-to-day changes in 2026 is what California considers a “livable” rental. This update is tied to California’s minimum habitability standards, so it’s treated as a baseline requirement rather than an optional amenity. For leases signed, renewed, or changed on or after January 1, 2026, landlords will generally need to provide a working stove and refrigerator.
In plain terms: when a lease is signed, renewed, amended, or extended on or after January 1, 2026, plan on providing these appliances unless a narrow exception applies. That matters because habitability issues can quickly become formal complaints, rent disputes, or repair demands, especially during move-ins and renewals.
What to do now: Audit your units to see where tenants used to bring their own stoves or fridges, then budget for buying, storing, and replacing them.
Update your lease language to clearly reflect which appliances you provide and what you are responsible for maintaining, and back that up with a stronger maintenance process that documents repair requests, vendor visits, and final resolution dates for stoves and refrigerators.
If you operate in more than one California city, take a moment to review local ordinances as well, since some jurisdictions require more than the statewide baseline.
Security Deposits: Digital In, Digital Out (AB 414)
AB 414 changes how you return the security deposit. If the tenant paid rent or the deposit electronically, you will generally need to send any refund electronically as well, unless you both agree in writing to use another method (such as a paper check).
This also allows the move-out itemized statement to be delivered by email if both sides agree. It also addresses how refunds should be handled when there are multiple adult tenants on the lease, so your accounting process should be consistent and well-documented.
This matters because deposit refunds often involve multiple steps, and small process gaps can lead to complaints, delays, or disputes during a busy turnover.
How to implement without friction:
- Track how each tenant paid so you can quickly confirm whether they used electronic payments.
- Ask for refund details as soon as notice is given, then get written confirmation of the preferred electronic refund method and destination (for example, the exact account or payment handle).
- Use a simple written form when a tenant requests a different refund method and store it in the lease file.
You must still provide a clear, itemized statement, receipts, or supporting documentation, and deliver everything on time.
Nonpayment Evictions: Social Security Hardship Defense (AB 246)
AB 246 adds a new possible defense in some nonpayment eviction cases. If a tenant’s rent problem is tied to a qualifying disruption in Social Security benefits, they may be able to raise that hardship as a legal defense in court, as long as certain conditions are met and while the law is in effect.
In practice, this means the tenant may need to show proof of the benefit interruption, and the court may pause the case for a limited period while benefits are restored. Once benefits resume, the tenant typically must catch up quickly or enter a payment plan, so timing and documentation matter.
This does not apply in every case, but it can slow down or complicate filings when a tenant relies mainly on Social Security and claims that their benefits were interrupted.
This protection is not permanent; it is time-limited under the statute.
Risk controls to consider:
- Train your team to flag any Social Security hardship claim right away and treat it as a legal review issue.
- Keep clean records, including notices, payment ledgers, and any written statements about benefit interruptions.
- Talk to an attorney early to decide whether a payment plan or a different approach is more cost-effective than a longer court timeline.
A simple, written protocol helps your team respond consistently and avoids preventable mistakes.
The Rules That Still Drive Most 2026 Risk: AB 1482 and SB 567
For many landlords, 2026 will still be shaped most by the everyday rules on rent increases and ending tenancies. For many covered rentals, the statewide cap is based on 5% plus local inflation, with an overall ceiling, and local rules can be stricter. AB 1482 continues to limit how much rent can increase each year for many properties and requires a valid, legally recognized reason to terminate a covered tenancy.
Some rentals are exempt, but those exemptions often depend on the right notices and accurate property details. In other words, a unit can be exempt on paper, but hard to defend if your file is missing key disclosures.
SB 567 raised the bar on termination paperwork, so expect notices and supporting documents to be closely reviewed. If you use a no-fault reason to end a tenancy, expect closer scrutiny of the stated reason and your supporting records, because penalties can be significant when notices are inaccurate or unsupported.
Also, check local city or county rules. Many areas add stricter limits, fees, registration steps, relocation assistance, or notice requirements.
Practical Compliance Checklist for 2026
Landlords often lose time and money not because they ignore the law, but because they implement it inconsistently. A short, repeatable checklist can prevent most failures.
Operational priorities:
- Appliance readiness: Confirm availability and condition standards for stoves and refrigerators, and replacement protocols for renewals and new leases.
- Deposit workflow: Align refund method rules with your payment acceptance methods and store written agreements for any exceptions.
- Documentation discipline: Centralize proof of service, rent ledgers, maintenance logs, photos, and move-out documentation.
- Notice precision: Use updated forms, confirm property coverage and exemptions, and verify local ordinance requirements by jurisdiction.
- Staff training: Hold a brief annual compliance refresh and require escalation for nonpayment cases involving potential statutory defenses.
FAQ
Do I have to add a stove and refrigerator to every unit on January 1, 2026?
Not automatically. The requirement generally applies when a lease is signed, renewed, amended, or extended on or after January 1, 2026, so plan to comply at move-in or renewal.
If a tenant paid electronically once, do I have to refund the deposit electronically?
Usually yes. If you received rent or the deposit electronically, refunds are generally expected to be electronic unless you both agree in writing to another method.
Does AB 246 block a nonpayment eviction?
No. It may give some tenants a defense tied to qualifying Social Security benefit interruptions, which can affect timing and strategy.
What rent increase limit applies in 2026?
Many units follow the statewide cap, but exemptions and local rules can vary by address.
2026: The Year Process Becomes Profit Protection
California’s 2026 updates make everyday operations higher-stakes. A “habitable” unit now more clearly includes key appliances, deposit refunds must follow the methods you used to collect payments, and certain nonpayment cases may require a smarter, slower approach.
At the same time, rent caps, just-cause rules, and local ordinances continue to reward landlords who run clean files and consistent systems. The goal is not to memorize laws. It is to build a repeatable workflow that prevents small mistakes from becoming expensive disputes.
PMI Patron Property Management can standardize your lease language, deposit workflow, and notice process across every door, so turnovers stay fast, files stay clean, and compliance is built into daily operations. If you want a 2026-ready playbook customized to your portfolio, reach out to PMI Patron to schedule a compliance and operations review.
Additional Resources
The Rising Demand for Single-Family Rentals in California
What the Housing Element and Rezoning in Buena Park Mean for Property Owners
