California Lease Agreement Requirements: New Laws Every Landlord Must Know

New Lease Rules Under AB 1529 and AB 1414

These two bills do different things, and neither is a general new disclosure package. One makes an existing notice easier to deliver; the other creates a new tenant right you have to honour.

AB 1529 (Chapter 203, a housing omnibus bill) changes how you deliver the Tenant Protection Act notice. The just cause and rent cap notice required by Civil Code § 1946.2(f) previously had to be given as an addendum to the lease or as a separate written notice signed by the tenant. AB 1529 allows that notice to be provided in the lease or rental agreement itself. This is a relaxation, not a new obligation — but if your template still carries the notice as a separate signed addendum, you can now fold it into the lease body. The bill's remaining provisions concern assisted housing developments, affordable rent limits and migrant farm labor housing, and do not touch ordinary residential leases.

AB 1414 (Chapter 506) adds Civil Code § 1942.8 and is the one that changes what you can charge for. For any residential tenancy commenced, renewed, or continuing on a month-to-month or other periodic basis on or after January 1, 2026:

• You must allow the tenant to opt out of paying for any third-party internet service provider subscription tied to the tenancy
• If you do not, the tenant may deduct the cost of that subscription from the rent
• You may not retaliate against a tenant for exercising this right

If your lease bundles a building-wide internet package into rent or charges it as a mandatory fee, that arrangement needs an opt-out path before your next renewal.

Stove and Refrigerator Habitability: What AB 628 Means for Your Lease

AB 628 (Chapter 342) does something narrower and stronger than a general appliance rule. It amends Civil Code § 1941.1 to add a stove and a refrigerator to the list of characteristics a dwelling must have to be legally tenantable. This is a minimum habitability standard: it is not about maintaining whatever happened to be in the unit — it means you are required to provide a working stove and refrigerator.

What the statute requires:

• A stove maintained in good working order and capable of safely generating heat for cooking (§ 1941.1(a)(10)), and a refrigerator maintained in good working order and capable of safely storing food (§ 1941.1(a)(11))
• An appliance subject to a recall by the manufacturer or a public entity is deemed not to meet the standard, and you must repair or replace it within 30 days of receiving notice of the recall
• Both requirements apply only to a lease entered into, amended, or extended on or after January 1, 2026
• They do not apply to permanent supportive housing, single-room occupancy units, or units in a residential hotel
• The tenant's existing right to repair and deduct, or to vacate, under Civil Code § 1942 is expressly preserved

You cannot disclaim these obligations in the lease. Tenantability under § 1941.1 is not something a lease can waive, so marking a stove or refrigerator "as-is" does not work. The one permitted variation is narrow: a tenant may choose to supply their own refrigerator, but only by mutual agreement at signing, and only if all of the following hold — the lease contains a statement substantially in the statutory form ("Under state law, the landlord is required to provide a refrigerator in good working order in your unit…"); the lease lets the tenant give 30 days' written notice to give up that arrangement, after which you must install a working refrigerator; you do not condition the tenancy on the tenant supplying one; and you are not responsible for maintaining the tenant's own unit.

Updated Security Deposit Rules: AB 414 Returns and AB 2801 Documentation

California's deposit rules changed in two separate waves, and they are easy to confuse. AB 2801 phased in photo and documentation requirements for deductions across 2025. AB 414 (Chapter 340, effective January 1, 2026) is a different bill that governs how the deposit must be returned — not what you must document. Bad-faith retention exposes the landlord to statutory damages of up to twice the deposit, on top of actual damages (Cal. Civ. Code § 1950.5(l)).

What AB 414 actually changed, effective January 1, 2026:

• The default return method is personal delivery or a check made payable to the tenant
• If you collected the deposit or accepted rent payments electronically, you must return the balance electronically — to a bank or financial institution account the tenant designates in writing, or by another electronic method the tenant agrees to in writing — unless you and the tenant designate a different method by written agreement
• In that situation you must also notify the tenant in writing of their right to an electronic return, within a reasonable time after either side gives notice of intent to end the tenancy, or before the lease term ends. This does not apply where you already have a written agreement on another method, or where the tenancy ends under Code of Civil Procedure § 1161(2), (3) or (4)
• Where more than one adult tenant lives in the unit, the refund check must be made payable to all adult tenants, and the itemized statement goes to any one of them you choose — unless you and all adult tenants sign a mutual written agreement providing otherwise

These rules sit on top of requirements that were already in force and did not come from AB 414:

• The itemized statement is still due within 21 days of the tenant vacating (§ 1950.5(g))
• Copies of receipts, invoices or estimates must accompany that statement, unless repairs and cleaning together total $125 or less or the tenant validly waived the right (§ 1950.5(g)(2)–(4))
• AB 2801 photos: at move-in for tenancies beginning on or after July 1, 2025, and before and after any repair you deduct for from April 1, 2025, delivered with the itemized statement
• The cap is one month's rent for most landlords, and two months for a natural person who owns no more than two residential properties totalling no more than four units — that came from AB 12, effective July 1, 2024, not from AB 414

Two practical steps: build a documented inspection and photo workflow into your leasing process for AB 2801, and record how each tenant pays, because that is what now determines your return obligation under AB 414. If any rent or deposit money arrives electronically, calendar the written notice of the tenant's right to an electronic refund so it goes out before the term ends.

Rent Increase Limits, Just Cause Eviction, and Notice Period Rules

California's Tenant Protection Act, as reinforced by recent legislative updates, continues to govern rent increases and evictions for most older residential properties. Coverage is not tied to a fixed year: the new-construction exemption is a rolling 15 years, so a unit becomes covered once its certificate of occupancy is more than 15 years old — which as of 2026 means roughly those built before 2011. The Act is currently set to sunset on January 1, 2030. Landlords must ensure their lease agreements accurately reflect these ongoing protections.

Critical rules to incorporate into your lease:

• Annual rent increases are capped at 5% plus local CPI, or 10% total, whichever is lower, for covered units
• Just cause eviction requirements apply after a tenant has resided in the unit for 12 months, limiting the valid reasons a landlord may terminate tenancy
• No-fault evictions, such as owner move-in, require relocation assistance equal to one month's rent paid to the tenant
• Notice periods for rent increases above 10% require a minimum 90-day written notice
• Lease agreements should clearly identify whether the unit is subject to local rent control in addition to state law

Consult your local municipality's rules as well, since cities like Los Angeles, San Francisco, and Oakland impose additional protections beyond state minimums.

How to Update Your California Lease Agreement for Full 2026 Compliance

Getting your lease agreement into compliance before your next rental cycle is the most important step you can take to protect your investment and avoid costly legal disputes. A patchwork of handwritten additions to an outdated template is not sufficient.

Follow these steps to ensure full compliance:

• Give tenants an opt-out from any third-party internet subscription tied to the tenancy (AB 1414), and fold the Tenant Protection Act notice into the lease body if you prefer (AB 1529 now permits it)
• Confirm every unit has a working stove and refrigerator before a lease is signed, amended or extended, and remove any "as-is" appliance language, which AB 628 does not permit
• Add a security deposit section that mirrors the AB 414 return procedure and the AB 2801 documentation rules
• Confirm your rent increase caps, notice periods, and just cause eviction language match current state law
• Check whether your property falls under any additional local rent control ordinances and add the required disclosures
• Have a California-licensed attorney review the final document before use

Using a professionally built, state-specific lease generator is one of the fastest ways to ensure every required clause is present and legally current.

Official sources

Primary statutes and official government references for this guide. Statutes change — always confirm against the current official text before you act.

• Cal. Civ. Code § 1950.5 (security deposits)
• Federal lead-based paint disclosure rule (Section 1018 of Title X; 42 U.S.C. § 4852d) — US EPA