California rental housing compliance changes fast—and 2026 brought several meaningful updates that affect day-to-day operations for landlords and property managers in North County San Diego (Escondido, San Marcos, Vista, Oceanside, Encinitas, Carlsbad, and beyond). This guide breaks down what changed, what’s actionable now, and what to update in your lease templates and processes.
Disclaimer: This article is for general information only and is not legal advice. For property-specific guidance, consult a California landlord-tenant attorney.
Quick Summary: What Changed in 2026
Big themes this year:
Habitability upgrades (appliances + extreme heat policy)
Security deposit handling modernization (including electronic return rules/agreements)
Tenant rights around internet service provider choice
New eviction defense tied to Social Security disruptions
Increased scrutiny of rent-pricing software/algorithmic pricing + higher antitrust penalties
1) AB 628 — Stove + Refrigerator Now Part of Habitability
What it does: Beginning January 1, 2026, landlords must provide a working stove and refrigerator for most residential rentals in California (with certain exceptions). This applies to many new, renewed, or amended leases on/after that date.
Why it matters in SoCal: This is especially relevant in markets where “tenant provides fridge” was historically common (notably parts of LA), but it impacts statewide leasing standards.
Action steps for owners:
Add/confirm stove + fridge in your property condition standards and turnover scope.
Update lease templates to reflect appliances provided and repair responsibility.
Budget for replacement cycle and ensure vendor response times.
2) SB 655 — Safe Maximum Indoor Temperature Policy (Extreme Heat)
What it does: SB 655 establishes a state policy that residential units should be able to attain/maintain a safe maximum indoor temperature, driving agencies to incorporate heat-mitigation into policies and future building standards. Implementation is phased—the policy starts now, but specific standards and enforcement mechanisms can roll out later through code updates.
Why it matters in North County: Heat waves are not just an inland issue anymore. Owners should expect increasing attention to ventilation, shading, insulation, and cooling strategies over time.
Action steps for owners (practical, now):
Evaluate heat risk: window exposure, ventilation, attic insulation, and airflow.
Consider preventative upgrades: shade solutions, ceiling fans, sealing/insulation, or HVAC tune-ups.
Document habitability responses and timelines.
3) AB 1414 — Tenant Choice Around Internet Service
What it does: For certain tenancies on/after January 1, 2026, AB 1414 requires landlords to allow tenants to opt out of an ISP subscription offered as part of the tenancy and prohibits retaliation for exercising that right. If a landlord improperly charges after opt-out, the law provides tenant remedies (including rent deduction in certain scenarios described in analyses).
Action steps:
If your building bundles internet: revise lease language and billing.
Create a simple opt-out process (written form + confirmation).
Train leasing/onboarding staff to avoid accidental “auto-billing.”
4) AB 414 — Security Deposit Return Updates (Including Electronic Methods)
What it does: AB 414 modernizes and clarifies security deposit return procedures—allowing written agreements about how deposits and itemizations are delivered (including electronically), and addressing scenarios with multiple tenants on the lease. It also ties into electronic payment workflows in many situations.
Action steps:
Update your move-out workflow to include:
“Return method” agreement language (mail vs electronic)
Multi-tenant handling rules/agreements
Ensure you can produce a clean itemized statement + receipts on time.
Confirm your software settings (AppFolio, Buildium, etc.) match your process.
5) AB 246 — Social Security Hardship Eviction Defense
What it does: Effective January 1, 2026, tenants who can’t pay rent due to verified delays/interruptions/reductions in Social Security benefits may assert an affirmative defense in an unlawful detainer action for nonpayment. Courts may stay proceedings up to a defined period if proven.
Action steps:
Tighten documentation: ledger accuracy, notices, and communication logs.
If a tenant raises this issue, consult counsel early—timeline strategy matters.
6) AB 325 — Restrictions on “Common Pricing Algorithms”
What it does: AB 325 updates California antitrust law to address certain uses of common pricing algorithms and reduce the risk of coordinated pricing outcomes (including in rental markets). It took effect January 1, 2026.
Why owners should care: If you rely on software that recommends rent based on competitor data, you should understand how the tool works and avoid practices that could look like coordinated pricing.
Action steps:
Ask your pricing tool/vendor:
Does it ingest competitor rent data?
How does it generate recommendations?
What controls exist to avoid “alignment” behavior?
Keep human oversight: document your independent rationale (condition, improvements, demand, days-on-market).
