CA Landlord Compliance Updates 2025/2026

California Landlord Compliance Update for Small Investment Owners (2025–2026): Four Operational Changes to Implement Now

If you own investment property in San Mateo or Santa Clara County, the most expensive “compliance mistake” is usually not a fine - it’s a preventable dispute, a botched turnover file, or a timeline you didn’t account for. Several California laws that took effect in 2025 (and one starting in 2026) change the day-to-day playbook for deposits, documentation, and the timeline for certain tenant disputes.

1) Evictions: Front-End Timelines Are Longer Under AB 2347

What changed: Effective January 1, 2025, AB 2347 generally extends the time for a defendant to respond in unlawful detainer from 5 days to 10 court days, excluding weekends and judicial holidays. 

Why this matters to small owners:

• Cash drag increases. If rent is unpaid, a longer response window can mean more time before the case advances - especially when you add service issues, continuances, and local court backlogs. (This is particularly painful on a duplex or fourplex where one nonpaying unit is a significant percentage of income.)
  
  
• Underwriting needs a wider “stress band.” When you buy or refinance, it’s prudent to model a higher reserve for loss-to-lease and legal timeline risk than you might have in future years. 
• Process errors cost more. When the timeline is longer, mistakes in notice language, service, or documentation can multiply your costs.
  
  

Practical steps to implement:

• Update your timeline template (notice served → complaint served → response due → next steps) so you and your attorney/Property Manager are working off the same calendar.
  
  
• Tighten your rent-collection workflow (clear late-fee policy, if permitted; consistent reminders; documented payment plans). The goal is fewer escalations, not “harder” escalations.
  
  
• On purchases: ask the seller/manager for a list of current disputes, delinquency history, and their standard notice/service process. Treat weak documentation as a pricing issue.
  
  

2) Security Deposits: Photo Documentation Is Now Required Under AB 2801

What changed: AB 2801 adds mandatory photo documentation tied to security deposit deductions.

• Starting April 1, 2025, landlords must take photographs within a reasonable time after possession is returned and before any repairs/cleaning for which a deduction will be taken, and again after those repairs/cleaning are completed. 
• For tenancies beginning on or after July 1, 2025, landlords must also take photographs immediately before or at the start of the tenancy (a baseline set). Source

Why this matters to small owners:

• Deposit disputes often come down to credibility. A clean photo set is the fastest way to reduce “he said/she said.”
  
  
• Your process must be consistent. If you take photos “sometimes,” you will inevitably skip it during the turnover when you need it most.
  
  

A simple, repeatable Standard Operating Procedure (SOP) (works for 2 units or 20):

1. Move-in baseline (new tenancies 7/1/25+): 25–40 photos covering every room + floors/walls, appliances, fixtures, windows, patio/yard/garage if applicable.
2. Move-out (pre-work): photos taken after keys are returned and the unit is empty, before cleaning/repairs are tied to deductions. 
3. Post-work: photos after cleaning/repairs are completed if you are charging for them. 

File structure that prevents headaches:

• Folder naming: 123 Main St / Unit 2 / 2025-08-01 Move-In
  
  
• Repeat for Move-Out Pre-Work and Post-Work
  
  
• Store in one system (Drive, Dropbox, Property Management software). Don’t scatter photos across phones.
  
  

On purchases: request the last two years of deposit dispositions and ask, “Do you have move-in and move-out photos for recent turnovers?” Weak files are a red flag for hidden liability and operational sloppiness.

3) Positive Rent Reporting: AB 2747 Requires an Offer for Covered Landlords

What changed: AB 2747 requires covered landlords to offer tenants the option to have positive (on-time) rent payments reported to at least one credit bureau. Key timing points include:

• For leases entered into on or after April 1, 2025, the offer must be made at the time of the lease agreement and at least annually thereafter. Source
• For leases outstanding as of January 1, 2025, the offer generally needed to be made no later than April 1, 2025, and at least annually thereafter. 

Who is covered (essential for small owners):
Industry guidance commonly summarizes the law as applying to:

• Properties with 16+ units, and
  
  
• 15 or fewer units if the property is corporate-owned and the owner owns more than one residential rental property. Source

Many actual mom-and-pop owners (personal ownership, one property, under 16 units) may not be covered—but you should verify based on your ownership structure.

Fees: The bill text and legislative summaries commonly describe an allowed charge as the lesser of $10/month or the actual cost (if the landlord incurs no cost, no fee may be charged). 

Why this matters operationally (even if you’re exempt):

• Tenants may ask about rent reporting because it’s becoming more common.
  
  

Practical steps:

• Determine whether you’re covered based on unit count + ownership structure.
  
  
• If covered, pick a vendor and create a one-page election form and a calendar reminder for the annual re-offer.

4) Appliances: AB 628 Adds a Stove + Refrigerator Requirement Starting January 1, 2026

What changed: California is expanding the definition of “tenantable/habitable” for many rental units. AB 628 requires that, beginning with leases entered into “next year” (starting January 1, 2026), rental units include a working stove and refrigerator to be considered habitable. Source

The Governor’s announcement calls explicitly out AB 628 and the January 2026 timeline. 

Important details to know:

• The bill language includes a limited pathway for a tenant and landlord to agree at lease signing that the tenant will provide and maintain their own refrigerator, subject to statutory conditions. Source
• The bill also addresses recall situations and repair/replacement expectations (commonly summarized as requiring action within a set time after notice).
  
  

Why this matters to small owners:

• In some Bay Area submarkets, it has been common for tenants to supply a refrigerator. That shifts in 2026 for many leases.
  
  
• It’s a capital expenditure (Capex) and maintenance issue, not just a lease-wording issue.
  
  

Practical steps to take before 1/1/26:

• Inventory each unit: “Who owns the fridge? Who owns the stove? Condition? Age? Replace/repair budget?”
  
  
• Decide your standard: brand tier, delivery/haul-away plan, repair vendor.
  
  
• Update your lease package with an appliance addendum that matches how you will operate under AB 628 (and consult counsel if you plan to use any tenant-provided refrigerator election).
  
  

A 30–60–90 Day Implementation Plan

Next 30 days (no-cost improvements)

• Create your turnover photo checklist and folder naming convention (move-in / move-out, pre-work / post-work).
  
  
• Update your unlawful detainer timeline assumptions in your reserves and your internal “what happens next” flowchart.

Next 60 days (system upgrades)

• Confirm whether AB 2747 applies to your portfolio (unit count + ownership structure) and document your approach.
  
  
• Standardize your deposit return package so it always includes photos when deductions are made.
  
  

Next 90 days (2026 readiness)

• Complete your appliance inventory and set a 2026 capex reserve line for any unit that will need a landlord-provided fridge/stove.
  
  

Bottom line

For small multifamily owners, the win is not “knowing the law”—it’s building a repeatable system that protects cash flow and reduces disputes. If you implement only one thing this month, make it the photo documentation workflow. It’s low effort, high payoff, and it strengthens your position in almost every tenant-facing conflict that starts with, “That wasn’t like that when I moved in.”

This article is general information, not legal advice. If you’re in an active dispute or serving notices, consult a qualified landlord-tenant attorney.