As the 2025 legislative session draws to a close, several bills and policy shifts will meaningfully affect residential landlords, property managers, and investors in California. While the Legislature pursued many pro-housing and tenant-protection measures, the outcome reflects a balance of pressures—affordability, housing supply, tenant rights, and cost burdens. Below is a summary of the most consequential developments, with commentary on implementation and risk.

Major Changes and New Requirements

1. Mandatory provision of refrigerator + stove in rental units (AB 628)

A significant new requirement: effective January 1, 2026, landlords must supply and maintain a working refrigerator and stove in all rental units (new leases, renewals, or amendments).

• Any recalled appliances must be repaired or replaced within 30 days.
• Tenants may use their own appliance only if both parties expressly agree in writing.
• Exemptions: short-term rentals, permanent supportive housing, buildings with communal kitchens (e.g., certain assisted living)
• For property owners, this imposes new capital and maintenance costs. Anticipate budgeting or amortizing for appliance lifecycle, recall incidents, and possible disputes over condition.

2. Stronger lock-change (victim protection) requirements (SB 1051)

Starting in 2025, landlords must change locks within 24 hours of a tenant’s written request where the tenant (or household member) is a survivor of domestic violence, sexual assault, or stalking (given documentation).

• This is a nonnegotiable safety obligation; failure to comply may raise liability exposure.

3. Internet service opt-out (AB 1414)

For tenancies commencing or renewing on or after January 1, 2026, landlords (or their agents/associations) must provide tenants an opt-out option from any third-party internet subscription bundled as part of tenancy.

• Landlords cannot retaliate against a tenant for exercising this right.
• If the landlord fails to comply, the tenant may deduct the subscription cost from rent.
• Note: Offering bulk billing or group arrangements remains allowed.
• Implication: ensure lease forms and marketing clearly disclose opt-out, and maintain records showing compliance.

4. Rent payment reporting (SB 924 / AB 2747 repeal date removed)

The landlord’s duty to offer tenants the option to report their rent payments to consumer credit reporting agencies remains in effect indefinitely.

• Owners may charge tenants a pass-through “actual cost” of reporting, capped at $10/month.
• Note: this requirement applies only in certain multifamily or assisted housing contexts and excludes many small properties (e.g. ≤ 15 units) depending on ownership structure.

5. Prohibition on use / sale of rental pricing algorithms (SB 52)

A new prohibition prevents:

• Sale, licensing, or provision of a rental pricing algorithm to multiple parties, with intent that it be used to set rental terms in the same or related markets.
• Use of a rental pricing recommendation if the algorithm processes non-public competitor data and is used by another party in the same market.
• In short: pricing must not rely on shared proprietary algorithmic tools that tie you to competitive data pools.

6. “Disaster rebuilding / replacement” rent control (SB 522)

SB 522 would require that if a protected (rent-controlled) unit is destroyed or substantially damaged in a qualifying disaster, any replacement or rebuilt unit must also be subject to rent control if the original was.

• Also imposes “just cause” termination constraints on tenants with at least 12 months of continuous occupancy.
• This narrows the scope of recovery and repositioning for properties damaged by fire, flood or quake, potentially reducing flexibility for landlords rebuilding in disaster-affected zones.

7. Zoning / development changes and CEQA reform (AB 130, SB 131, SB 79)

These are less directly rental-provider rules, but shape development incentives, supply, and land-use constraints:

• AB 130 (2025): A budget “trailer” bill that exempts many infill housing projects from CEQA review, thereby reducing environmental review delays.
• SB 131 (paired with AB 130): similarly exempts certain projects (manufacturing, etc.) from CEQA obligations.
• SB 79 (Abundant and Affordable Homes Near Transit Act): mandates denser multifamily housing near transit stations by preempting local zoning limits within transit zones, allowing multi-story housing (4–9 stories) and streamlining approvals.
  • Effective date: July 1, 2026.
  • May reduce barriers to new developments in transit‐adjacent locations, increasing potential rental competition (or opportunity) over time.
• The broader context: lawmakers have made increasing housing supply and infill development a central priority for 2025, including revisions to CEQA to reduce developer constraints.

8. Failed / deferred proposals and pressures

• A proposal (SB 436) to give tenants a 14-day grace period to catch up on overdue rent before eviction did not advance out of committee.
• A tenant protection / “rental fee transparency” bill has been paused to further work out conflicts with landlord groups.
• Several aggressive rent control expansions (e.g. SB 566, AB 1157) were not adopted or stalled.
• AB 1240, which aimed to restrict further institutional investment in single-family rental homes, passed the Assembly but is pending in the Senate.

9. Tenant protection / retaliation / anti-retaliation expansions

• AB 1414 (internet opt-out) includes anti-retaliation provisions.
• AB 130 and other housing laws may indirectly shift leverage toward tenant advocates, heightening scrutiny on landlord compliance.
• Local jurisdictions may also adopt new tenant protection ordinances given the political climate; providers must continue to monitor local changes.

Impacts, Risks, and Strategic Priorities

1. Increased capital and operating costs
   • Appliance provisioning (fridge + stove) is a new baseline expense for nearly all units.
   • Compliance costs for lock-changes, opt-out administration, algorithm restrictions, etc.
   • Risk of penalties or tenant claims if noncompliant or delayed.
2. Contract / lease revision & systems updates
   • Lease forms must be revised (e.g. internet opt-out disclosure, appliance responsibilities, maintenance obligations).
   • Property management systems (for work orders, recall tracking, compliance deadlines) will need enhancements.
3. Liability and audit risk
   • Failure to comply with new statutes could lead to rent offsets, repair & deduct, tenant claims, or retaliation accusations.
   • With more statutory mandates, inspectors or local enforcement could become more active.
4. Supply-side pressure & competition
   • The CEQA and zoning reforms aim to spur new multifamily development, particularly near transit, increasing competition.
   • Existing rental providers may face increased pressure on yield and benchmarking as supply expands.
5. Uncertainty & deferred proposals
   • Some tenant protection proposals may reemerge in future sessions—providers must maintain vigilance and advocacy.
   • Local ordinances may become more aggressive (e.g. local rent control, fee caps, relocation assistance mandates).
6. Insurance / financing considerations
   • Lenders and insurers may adjust underwriting given added statutory exposures (e.g. lock obligations, appliance defaults, disaster rebuilding constraints).
   • For disaster-impacted properties, the new requirement to maintain rent control on reconstructed units may affect feasibility of reconstruction or financing.
7. Portfolio strategy implications
   • Smaller-scale owners (e.g. < 15 units) may find statutory burdens relatively more onerous; strategic review of portfolio scale, cost absorption, or exit may become more urgent.
   • New developments near transit might become priority investments, but require careful evaluation of the evolving regulatory costs and compliance demands.

Recommendations for Rental Housing Providers (Action Steps)

• Begin budget planning now for appliance procurement, maintenance, and replacement cycles (especially ahead of the Jan 2026 deadline).
• Update lease templates and addenda before the first renewals following Jan 1, 2026, to include disclosures and opt-out options (internet, appliance use, etc.).
• Audit existing appliance inventory and condition; identify units lacking stoves or refrigerators or nearing end-of-life.
• Enhance property management infrastructure (work order systems, compliance calendars, recall alerts).
• Review insurance / liability policies for coverage of new obligations.
• Monitor local ordinances closely—some cities may layer on stricter tenant protections or relocation obligations.
• Engage in industry advocacy to influence future sessions or emergency rulemaking (e.g. regarding disaster rebuilding or fee transparency).
• Assess long-term portfolio strategy in light of emerging supply, tighter margins, and regulatory complexity.

This article has been prepared by the editorial staff of Apartment News Publications, Inc. (ANP) intended for informational purposes only and does not constitute legal advice. Readers should consult with qualified counsel regarding their specific circumstances. ANP, Covering Issues That Impact Landlords and Property Owners.