How the 2026 California Landlord Law Changes Affect Property Owners in Contra Costa County
California landlords and rental property owners face several important landlord-tenant law changes starting January 1, 2026. These new regulations impact security deposits, eviction procedures involving Social Security income, and habitability standards for rental units.
If you own or manage residential rental property in Walnut Creek, San Ramon, Danville, Pleasant Hill, Lafayette, or Martinez, understanding these updates is essential to staying compliant and protecting your investment.
Disclaimer:
I am not an attorney, and this article does not constitute legal advice. The information below reflects my professional understanding as a California property manager and is based on extensive discussions with landlord-tenant attorney Rob Wells, Esq. of Wells Law Group (https://wellsesq.com). Always consult legal counsel for advice specific to your situation.
How the 2026 California Landlord Law Changes Affect Contra Costa County Property Owners
These 2026 updates reinforce a growing trend in California property management compliance:
more documentation, clearer procedures, and higher habitability standards.
For landlords working with Walnut Creek property management, San Ramon property managers, or Danville property management companies, these changes will directly impact daily operations.
1. California Security Deposit Law Update – AB 414 (Effective January 1, 2026)
Assembly Bill 414 introduces major changes to California security deposit rules under Civil Code §1950.5.
Electronic Security Deposit Refunds
Starting January 1, 2026, if a landlord receives rent or a security deposit electronically, the remaining security deposit must also be returned electronically, unless both parties agree in writing to another method.
This applies to platforms such as:
Zelle
Venmo
ACH direct deposit
Other electronic payment systems
For landlords using modern property management software, this law formalizes existing best practices.
Written Agreements for Refund Allocation
Landlords and tenants may agree—either at lease signing or later—to:
Receive security deposit refunds electronically
Receive itemized deposit statements by email
Designate how refunds are distributed among multiple adult tenants
This is especially important for shared households common in San Ramon property management and Danville property management markets.
If no agreement exists, refunds must be issued payable to all tenants.
Itemized Statements and Photo Documentation
AB 414 reinforces documentation requirements:
Landlords must provide:
A detailed itemized statement of deductions
Copies of invoices and receipts
Before-and-after photos showing unit condition
Beginning July 1, 2025, photo documentation is required for all new tenancies and before any deductions are made.
Practical Takeaway for Property Owners
Landlords should update:
Lease templates
Move-in and move-out forms
Security deposit refund procedures
Professional Contra Costa County property management firms are already implementing these safeguards to reduce disputes and liability.
2. New Eviction Law – AB 246: Social Security Tenant Protection Act of 2025
Effective January 1, 2026, AB 246 creates a temporary eviction defense for tenants affected by Social Security benefit disruptions.
What the Law Allows
Tenants facing eviction for nonpayment of rent may assert a Social Security hardship defense if:
Social Security income was delayed, reduced, or terminated
The disruption was due to federal government action or inaction
The tenant was not at fault
Court-Ordered Eviction Stay
If accepted, the court must pause the eviction until:
14 days after benefits are restored, or
Six months pass (whichever occurs first)
Rent Is Still Owed
This law does not forgive unpaid rent. Once benefits resume, tenants must:
Pay all back rent within 14 days, or
Enter into a mutually agreed payment plan
The law expires on January 20, 2029 and applies only to nonpayment of rent cases.
Landlord Best Practices
Landlords in Walnut Creek, Pleasant Hill, and Lafayette property management markets should:
Document all tenant communications
Maintain accurate rent ledgers
Seek legal guidance immediately when hardship claims arise
3. California Habitability Law Update – Refrigerators and Stoves Required (AB 628)
Assembly Bill 628 updates California habitability standards under Civil Code §1941.1.
What’s Required Starting January 1, 2026
For any new, renewed, amended, or extended lease, rental units must include:
A functioning stove
A functioning refrigerator
Both must be safe and maintained in good working order.
Tenant Refrigerator Opt-Out (Limited)
Tenants may provide their own refrigerator only if:
The lease includes required statutory opt-out language
The tenant voluntarily requests it
Tenants may later request a landlord-provided refrigerator with 30 days written notice.
There is no opt-out for stoves.
Appliance Recall Rules
If an appliance is subject to a manufacturer or government recall:
The landlord must repair or replace it within 30 days
A recalled appliance is legally considered non-operational
Exemptions
This law does not apply to:
Permanent supportive housing
SROs with shared kitchens
Residential hotels
Units with communal kitchens
No Cause for Alarm
For landlords already working with professional Martinez property management or Danville property managers, this law reflects standard business practices already in place.
Why Professional Property Management Matters More Than Ever
California’s 2026 landlord law updates increase complexity, documentation requirements, and risk exposure. Working with an experienced local property manager helps ensure compliance while protecting your time and investment.
Need Help Navigating California’s 2026 Landlord Law Changes?
If you own rental property in Walnut Creek, San Ramon, Danville, Pleasant Hill, Lafayette, or Martinez, PMI Contra Costa can help.
We specialize in:
Security deposit compliance
Lease enforcement
Habitability standards
Risk reduction under California law
Contact PMI Contra Costa today to schedule a consultation with a trusted Contra Costa County property manager. PMI Contra Costa is here to help. Contact us today to learn more.
