Three Critical Changes Every Landlord Must Know
By Derrick Ruiz
eXp Realty | 40+ Years LA Investment Property Experience
If you own rental property in Los Angeles or anywhere in California, 2026 is bringing important legal changes that will directly affect how you lease, manage, and potentially evict tenants.
For small "mom-and-pop" landlords especially, compliance mistakes are becoming increasingly costly. In today's regulatory environment, even minor technical errors can result in a dismissed eviction case.
Below are three key updates you need to understand before January 1, 2026.
Effective January 1, 2026
Under new California law (AB 628), landlords must provide:
in every rental unit.
A microwave or hot plate does not qualify as a stove.
This requirement applies to:
If a fixed-term lease continues without renewal, the requirement is not triggered until renewal.
Once provided, these appliances become part of the rental. That means:
This change may create complications for older "bachelor" units that were not designed for full cooking appliances. Landlords with nontraditional layouts should evaluate compliance now—not in 2026.
Action Step:
If your units do not currently include a stove and refrigerator,
budget for installation before your next turnover or lease renewal.
If your property is located within the City of Los Angeles, a new procedural rule is now in effect.
You must:
The notice must be provided in:
Failure to comply can result in:
Courts are strictly enforcing procedural compliance. A missing form—even if rent hasn't been paid for months—can derail your case.
Action Step:
Download the official Right to Counsel form from the Los Angeles Housing Department (LAHD) website and ensure it is:
If your property falls under the Los Angeles Rent Stabilization Ordinance (RSO), you are required to pay annual interest on tenant security deposits.
This requirement has existed for years—but enforcement is tightening.
Tenant attorneys are now using failure to pay annual deposit interest as a defense to block eviction proceedings.
That means: Even if rent is unpaid, even if you served proper notice, your case can still be dismissed if annual interest was not paid.
If a tenant placed a $1,500 security deposit in 2021 and remains in the unit through 2025, the accumulated interest could exceed $70 depending on annual rates.
In 2025, the interest rate rose to approximately 4.32%, significantly higher than prior years.
Interest may be paid as:
It must be paid annually or upon move-out, whichever comes first.
The official rates are published in LAHD Rent Stabilization Bulletin No. 44 and updated annually.
Action Step:
Review your tenant move-in dates and deposit amounts now. Calculate and document all required interest payments before initiating any eviction action.
In Los Angeles, eviction cases are increasingly decided on procedural compliance—not just whether rent was paid.
Missing one technical requirement can result in:
For small landlords operating on tight margins, that risk is significant.
Modern tools, including AI-based calculation systems, can quickly compute:
What used to require spreadsheets and manual research can now be calculated in minutes. The key is knowing the rules and applying them correctly.
If you are:
It may be time to evaluate long-term strategy.
Many property owners are exploring:
These strategies can potentially:
Every situation is different. Proper analysis should always involve your CPA, tax attorney, or financial advisor.