New CA Rental Laws 2026: AB 628, RSO Formula & More

What happened: As of late 2026, several new state and local laws impact California landlords. Key changes effective this year include AB 628, which makes stoves and refrigerators a habitability requirement; AB 414, which governs electronic security deposit returns; and a new Los Angeles RSO rent increase formula.

On August 12, 2026, a legal summary highlighted a package of new laws and rule changes affecting residential landlords across California, with specific impacts for owners of rent-controlled properties in Los Angeles. These updates change how units must be equipped, how security deposits are handled, and how annual rent increases are calculated, creating new compliance hurdles that can surface during a sale or refinance.

What Changed

Five distinct changes took effect in 2026, altering the obligations for landlords and the assumptions for investors. These rules apply to most residential rental properties, though specific exemptions exist for each.

• AB 628 (Stoves & Refrigerators): This new law amends California Civil Code § 1941.1 to require that a landlord provide a working stove and refrigerator in a rental unit as a condition of habitability. This applies to leases entered into, renewed, or amended on or after January 1, 2026. A tenant can agree in writing to provide their own refrigerator, but not the stove.
• AB 414 (Electronic Security Deposits): This law amends Civil Code § 1950.5. If a tenant paid their security deposit or rent electronically, they can now demand the deposit be returned electronically to a designated account. The 21-day timeline for deposit returns remains, but the method of return is now specified.
• SB 610 (Disaster Protections): This bill codifies tenant protections following a declared natural disaster. While specifics are still being interpreted, it generally addresses rent abatement for uninhabitable units, eviction rules, and limits on rent increases after a state of emergency is declared.
• Los Angeles RSO Formula Rewrite: Effective July 1, 2026, the City of Los Angeles rewrote the formula used to calculate the annual allowable rent increase for units under its Rent Stabilization Ordinance (RSO). This affects how landlords in the City of L.A. can raise rents on covered units, which are typically in buildings constructed before October 1978.
• AB 1482 Statewide Rent Cap Increase: On August 1, 2026, the maximum allowable rent increase under the statewide Tenant Protection Act (AB 1482) was adjusted upward based on new Consumer Price Index (CPI) figures. This cap applies to units not covered by a stricter local rent control ordinance.

When Does It Take Effect?

The changes were rolled out at different points during 2026. Here is the timeline for when each rule became operative.

What This Means in the South Bay and on the Westside

These statewide laws have specific consequences for local real estate transactions.

For investors purchasing tenant-occupied properties in Manhattan Beach or Hermosa Beach, AB 628 is now a critical due diligence item. You must verify that every unit has a working, landlord-provided stove. A missing appliance, once considered a minor amenity issue, could now legally be a breach of the warranty of habitability, giving a tenant grounds to withhold rent. This must be confirmed in lease reviews and estoppel certificates before closing escrow.

In Westside markets with a high concentration of rent-controlled buildings, like Venice and Westchester (both in the City of LA), the new RSO formula directly impacts property valuation. Pro forma cash flow models for apartment buildings must be recalculated using the new July 1, 2026 formula from the Los Angeles Housing Department (LAHD). Relying on old rent-increase assumptions will lead to inaccurate underwriting and could jeopardize financing. The same is true for properties in Torrance or Culver City subject to the statewide AB 1482 cap; their rent projections also need updating as of August 1, 2026.

What Agents and Homeowners Should Do Now

To avoid compliance issues that can delay or kill a deal, we recommend taking these steps immediately.

1. Audit Lease Agreements: Review all current lease templates. Add language specifying the provision of a stove and refrigerator per AB 628. If tenants provide their own fridge, document this in a written addendum.
2. Update Accounting Procedures: Establish a clear process for returning security deposits electronically as required by AB 414. Ensure you can process an ACH or wire transfer within the 21-day legal window.
3. Recalculate Rent Projections: For any multifamily property you own, manage, or are analyzing for purchase, update your financial models. Use the new LA RSO formula for applicable units and the new AB 1482 cap for others. This is essential for accurate valuation and for services like our multifamily title and escrow work.
4. Revise Due Diligence Checklists: Buyers' agents should add appliance compliance (AB 628) and deposit return procedures (AB 414) to their due diligence checklists for tenant-occupied properties.
5. Confirm Official Guidance: Do not rely on summaries. Verify the exact annual increase percentages directly from official sources like the LAHD for the RSO cap and the California Department of Housing and Community Development (HCD) for the AB 1482 cap.

Open Questions

As of late September 2026, a few details are still awaiting final clarification from government agencies.

• SB 610 Implementation: The specific scenarios under which tenants can break leases or receive rent abatement after a disaster under SB 610 are still being clarified through case law and potential regulatory guidance.
• The Exact LA RSO Percentage: While the formula was rewritten, the city's annual allowable increase bulletin provides the final, official percentage that can be used. Landlords must check the latest LAHD notice before issuing any rent increase.
• The Exact AB 1482 Cap: The statewide cap is tied to regional CPI, which can fluctuate. The precise cap applicable from August 1, 2026, should be confirmed from the Attorney General or HCD's official publication.

Sources

We base our analysis on primary source documents and official agency guidance. We recommend you consult them directly for your specific situation.

• California Legislative Information: For the full text of AB 628, AB 414, and SB 610.
• Los Angeles Housing Department (LAHD): For official bulletins on the RSO annual allowable rent increase.
• California Department of Housing and Community Development (HCD): For information and guidance on the statewide Tenant Protection Act (AB 1482).

FAQ

Do I have to provide a refrigerator for my rental in California now?

Yes, for leases signed, renewed, or amended after January 1, 2026, AB 628 requires landlords to provide a working refrigerator as part of the unit's basic habitability standards. However, a landlord and tenant can agree in writing for the tenant to provide their own.

Who pays for the new stove and fridge under AB 628?

The landlord is responsible for providing and maintaining the stove and refrigerator required by AB 628. These are not capital improvements that can be passed through to the tenant as a separate fee, but part of the base rent.

How does the new LA RSO formula affect my 2026 rent increase?

The new formula, effective July 1, 2026, determines the maximum percentage you can raise the rent on an RSO-covered unit for the following 12-month period. You must use the new, official percentage published by the LAHD and cannot use the old formula or a higher amount.

Does the electronic security deposit law apply if my tenant pays by check?

AB 414 is triggered if the tenant paid the deposit or rent electronically at any point. If all payments have always been by check or cash, the landlord can generally return the deposit via check. But if even one rent payment was made via Zelle, Venmo, or an online portal, the tenant can likely demand an electronic return.

These new laws create complex layers of compliance for landlords, especially when managing apartment buildings or preparing a property for sale. If you have a deal in the South Bay or on the Westside that involves tenant-occupied units, a 1031 exchange, or complex LLC vesting, it is critical to get expert guidance. Contact us—Matt Goeglein and Xavier de la Piedra IV—at Fidelity National Title to ensure these new rules do not create a last-minute problem for your closing.