Lower rent caps, new appliance and deposit rules, and post-disaster duties. A plain-English rundown for San Fernando Valley rental owners.
If you own a rental in Los Angeles, 2026 quietly rewrote several of your rules. None of these changes are catastrophic, but a few carry real dollars and real liability if you miss them. Here's the short version, owner to owner.
LA's rent cap is coming down
If your building falls under the city's Rent Stabilization Ordinance (most multifamily built before October 1978), your ceiling is shrinking. The current allowable increase is 3%. Starting July 1, 2026, a new formula kicks in: 90% of CPI, with a floor of 1% and a ceiling of 4%. That replaces the old range that topped out at 8%.
Two bonus increases also go away. You can no longer add 1% for covering a tenant's gas or electric in a master-metered building, and the extra 10% for an added dependent is gone.
The practical takeaway: if you were counting on larger annual bumps to keep pace with rising insurance and maintenance costs, that math just got tighter. Plan your budgets around 4% as a realistic ceiling, not a floor.
You now have to provide a fridge and a stove
Statewide, AB 628 took effect January 1, 2026. Every rental unit needs a working refrigerator and stove. Tenants can opt out in writing at move-in, but that opt-out has to be voluntary and documented, and they can ask you to add the appliances later. If your units run "bring your own fridge," update your leases.
Deposits go electronic
AB 414 says that if a tenant paid their deposit electronically, you have to offer to return it the same way. The 21-day deadline hasn't changed. This is small, but a returned-deposit dispute is exactly the kind of thing that turns into a claim. Tighten your move-out process.
Post-disaster duties are now spelled out
After the fires, SB 610 put clear obligations on owners when a natural disaster hits. You must halt rent and fees during a mandatory evacuation, return prepaid rent and deposits if a unit becomes uninhabitable, let tenants back in once repairs are done, and allow them to end a lease on an uninhabitable unit without penalty. If you own in or near a fire-risk area, read this one closely.
No more hidden fees
AB 747 requires every mandatory fee to be disclosed upfront in your listing and your lease quote. Fees that only surface after a tour or application now violate state law. Put it all in the ad.
What did not change
The statewide Tenant Protection Act (AB 1482) is still in force through 2030, with its 5% plus CPI cap and just-cause rules intact. If your property is covered by both AB 1482 and the city RSO, the stricter local rule usually governs.
What to do before your next renewal
Pull your rent-increase notices and confirm they match the new caps. Update your leases for the appliance and fee rules. Review your move-out and deposit-return process. None of this is hard, but all of it is easier to fix now than after a tenant files a complaint.
If keeping up with this is starting to feel like a second job, that is exactly what a property manager is for. At Clear Way, we manage San Fernando Valley rentals and keep owners compliant so a missed notice never becomes a lawsuit. If you'd like a second set of eyes on your units, email [email protected] or call (818) 697-4884. No obligation, just a straight answer.
You can find more owner resources on the Clear Way blog.
