2026 California Property Management Law Changes

1. Rent Caps Still Apply

California’s statewide rent cap under the Tenant Protection Act of 2019 continues to limit how much landlords can increase rent for most residential properties — and 2026 is no exception.

In general:

• Annual increases are capped at 5% plus local CPI, or 10% maximum — whichever is lower. For 2026, landlords should verify the current CPI rate before issuing any rent increase.
• Proper written notice is required (30 days for increases up to 10%, 90 days for increases greater than 10%)
• Certain properties may be exempt — but exemptions must be disclosed correctly
• Local rent control can layer additional caps.

Mistakes around rent increases remain one of the most common compliance violations we see — usually due to improper notice period, incorrect calculations, or misunderstood exemptions. In 2026, taking a few extra steps to verify CPI, serve notices correctly, and document exemptions can help avoid costly disputes.

📘 Coming soon: Wondering if your lease agreement is compliant with 2026 rent cap changes? We’ll cover exactly what lease language needs updating in an upcoming article.

2. Notice Delivery Rules Matter More Than Ever

How and when you deliver notices is just as important as what the notice says.

Landlords must:

• Use the correct notice type
• Follow strict delivery methods (posting, mailing, or personal service)
• Allow proper waiting periods

Even if the tenant received and read the notice, courts may rule it invalid if delivery wasn’t executed correctly. Improper notice delivery can invalidate rent increases, lease changes, or even eviction actions.

Real life Oakland example:
Case T01-0099 Hill v. Brown

An Administrative Decision denied a rent increase where the RAP Notice was not served as required, and the rent increase notice was not served in compliance with Civil Code § 827.

[ RAP Appeals Decision Index ]

3. Just Cause & Tenant Protections

Many California renters are protected from eviction without a legally recognized reason.

This means:

• No-fault evictions are limited – Landlords cannot simply terminate a tenancy without a qualifying legal reason (e.g., nonpayment, lease violation, owner move-in, Ellis Act). Blanket “no-fault” or arbitrary terminations are prohibited under California and many local ordinances.
• Proper documentation is essential – Eviction notices must strictly comply with statutory and local ordinance requirements — including correct forms, timelines, and legal grounds. Mistakes in notice content or service can give tenants a complete defense.
• Relocation assistance may apply in certain cases – In jurisdictions like Berkeley and Oakland, tenants displaced by no-fault terminations — such as owner move-in or redevelopment — are entitled to statutory relocation assistance. In some cases, relocation funds must be deposited with the city/board before the eviction proceeds.
• Tenant defenses have expanded – Courts and rent boards are increasingly receptive to defenses based on procedural defects, such as improper notice service, failure to pay relocation assistance, or misclassification of the eviction basis. These defenses can delay or defeat evictions.
• Landlord liability for errors is real – If eviction proceedings are filed with flawed documentation or without satisfying relocation requirements, landlords may be ordered to: Reinstate the tenancy, Pay back rent for the period unlawfully withheld, Provide statutory damages, Cover tenant attorney fees and costs

These protections are especially impactful in the Bay Area.

Real life Berkeley example:
Mak v. City of Berkeley Rent Stabilization Board.

A landlord served a purported owner move-in notice, but instead rented the unit at market rate. The Court upheld the Board’s rejection of the eviction because the owner’s actions were a transparent attempt to circumvent the ordinance.

[ Mak v. Berkeley – Justia.com ]

4. Security Deposit Rules Continue to Tighten

Security deposits, and now the amount a landlord can charge, remain a frequent source of disputes.

In 2026, landlords must be especially careful about:

• Allowable deductions– Only specific costs related to unpaid rent, repairs for tenant-caused damage, and cleaning to return the unit to the same level of cleanliness as at move-in are permitted. Landlords cannot deduct for normal wear and tear.
• Itemized statements – When any deduction is made, landlords must provide a detailed, written itemization explaining each charge, tied to actual expenses.
• Return timelines – Security deposits must be returned — with the itemized statement — within 21 days after the tenant vacates (even if a new tenant hasn’t yet moved in).
• Pre-repair photo documentation (AB 2493 effects) – For deposits taken on or after January 1, 2026, landlords are required to photograph the interior condition of the unit immediately after regaining possession — before performing cleaning or repairs. These photos must be included with (or available upon request with) the itemized statement.
• Mandatory appliance condition documentation (AB 628 impact) – Because California’s new habitability standards starting in 2026 require working refrigerators and stoves/ovens in most units, landlords who fail to maintain these and then deduct from a deposit can face disputes unless condition documentation was taken at lease start.
• Expanded liability for non-compliance – Even legitimate damage deductions can trigger statutory penalties — including up to twice the amount wrongfully withheld, plus reasonable attorney fees — if a tenant successfully proves that the return statement or documentation was deficient under the new rules.

Failure to comply can expose owners to financial penalties — even when the damage is legitimate — and the burden of proof now includes enhanced documentation standards. Smart landlords in 2026 will have checklists and photo records for both move-in and move-out conditions to reduce dispute risk.