California has some of the most complex landlord-tenant laws in the nation. With AB 1482 rent control, evolving security deposit rules, extensive disclosure requirements, and a patchwork of local ordinances, staying compliant requires constant vigilance. This comprehensive guide covers everything Bay Area landlords need to know about California rental law in 2026.
Disclaimer
This article provides general information only and does not constitute legal advice. Laws change frequently. Consult with a qualified attorney for specific legal guidance.
Rent Control & the Tenant Protection Act (AB 1482)
California's Tenant Protection Act (AB 1482), effective since January 2020 and extended through 2030, applies to most residential rental properties built before 2005. Understanding its provisions is essential for every California landlord.
Rent Increase Limits
The annual rent increase cap is calculated as the lesser of:
- 5% + local CPI: The Consumer Price Index for the region where the property is located (typically Bay Area CPI)
- Maximum 10%: Regardless of CPI, increases cannot exceed 10% in any 12-month period
For 2026 in the Bay Area, with CPI around 3-4%, the typical allowable increase is approximately 8-9%. Landlords must provide 30 days written notice for increases of 10% or less, and 90 days notice for increases exceeding 10% (which would only apply when banking prior year increases).
Just Cause Eviction Requirements
For tenancies longer than 12 months (or all occupants have resided for 24+ months), landlords can only terminate for specific reasons divided into two categories:
At-Fault Just Cause
- • Nonpayment of rent
- • Breach of lease terms
- • Nuisance or waste
- • Criminal activity on premises
- • Refusal to allow lawful access
- • Failure to sign lease renewal
- • Unapproved subletting
No-Fault Just Cause
- • Owner or family member move-in
- • Withdrawal from rental market
- • Government or court order
- • Substantial remodel (permits required)
- • Demolition
*Requires relocation assistance
Relocation Assistance Requirements
For no-fault evictions, landlords must provide relocation assistance equal to one month's rent. This can be paid directly or waived by the tenant remaining rent-free for the final month. Some local ordinances require higher amounts—always check local law.
AB 1482 Exemptions
Certain properties are exempt from AB 1482, but proper notice is required:
- Single-family homes and condos: Exempt if owner is not a corporation, REIT, or LLC with corporate member, and proper notice is given
- Owner-occupied duplexes: Where owner lives in one unit
- Properties built within 15 years: Rolling exemption for newer construction
Critical: To claim single-family/condo exemption, you must provide written notice to tenants, either in the lease or as a separate addendum, including specific statutory language. Failure to provide proper notice means the exemption does not apply.
Security Deposit Rules (2026)
California's security deposit laws changed significantly in 2024 and landlords must comply with the current limits:
Current Limits (Effective July 2024)
- Standard rule: Maximum 1 month's rent (furnished or unfurnished)
- Small landlord exception: Landlords owning no more than 2 residential rental properties with 4 or fewer units total may charge up to 2 months' rent
- Active military: Limited to 1 month's rent regardless of landlord size
Security Deposit Return Procedures
Strict timelines apply for returning security deposits:
- 21 days: Maximum time to return deposit and provide itemized statement of deductions
- Initial inspection: Must offer tenant opportunity to inspect and identify deficiencies before move-out
- Documentation: Receipts or invoices required for deductions exceeding $126
Habitability Requirements
California Civil Code Section 1941 requires landlords to maintain rental properties in habitable condition. Required elements include:
- • Effective waterproofing and weather protection
- • Working plumbing, gas, and heating facilities
- • Electrical lighting and wiring in good working order
- • Clean and sanitary buildings and grounds
- • Adequate trash receptacles
- • Working smoke and carbon monoxide detectors
- • Floors, stairways, and railings in good repair
- • Deadbolt locks on main entry doors
- • Window locks on ground-floor windows
Fair Housing Requirements
California's Fair Employment and Housing Act (FEHA) expands significantly on federal protections. Protected classes include:
- Race & Color
- National Origin & Ancestry
- Religion
- Sex, Gender & Gender Identity
- Sexual Orientation
- Age
- Disability (Physical & Mental)
- Familial Status
- Marital Status
- Source of Income (incl. Section 8)
- Veteran/Military Status
- Genetic Information
California's source of income protections mean landlords cannot refuse to accept Section 8 vouchers. Voucher holders must still meet other screening criteria, but income source itself cannot be grounds for denial.
Required Disclosures
California landlords must provide numerous disclosures before or at lease signing:
- Lead-based paint disclosure (pre-1978 properties)
- Mold disclosure and notification of known mold issues
- Pest control company disclosure and treatment records
- Bed bug disclosure and infestation history
- Flood hazard zone disclosure
- Demolition intent (if applicable within 3 years)
- Registered sex offender database notice (Megan's Law)
- Smoke detector and carbon monoxide compliance statement
- Military ordnance location (if within 1 mile)
- Death on property within 3 years (if asked)
- AB 1482 rent control notice (or exemption notice)
Local Ordinances: Bay Area
Many Bay Area cities have regulations that exceed state requirements:
San Jose
Apartment Rent Ordinance with additional tenant protections and registration requirements for covered properties.
Mountain View
CSFRA rent control with stricter limits than AB 1482, registration requirements, and specific petition procedures.
Hayward
Local rent stabilization with unique provisions predating AB 1482. Dual compliance required.
Always verify local requirements in addition to state law—violations can result in significant penalties.
Stay Compliant Without the Headache
Keeping up with California's ever-changing rental laws is a full-time job. Our team stays current on all regulations so you don't have to worry about compliance issues.
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