California has long been one of the most regulated rental markets in the country. But the pace is picking up. Between 2025 and 2026, four bills have introduced new requirements that affect how property managers handle daily operations. They cover rent control, security deposits, tenant screening and bundled internet services. This article covers the California rental laws you need to know, as well as the role property management software plays in keeping you compliant.
Rent control updates under AB 1482
Under the California Tenant Protection Act AB 1482, rent increases are still capped at CPI plus 5%, with a hard ceiling of 10% per year. What’s changed is how you document it.
The required AB 1482 disclosure language can now appear directly in the lease itself — no separate addendum needed. The good news is that the bill simplifies the paperwork. The only catch is that your lease templates must be current.
Keep in mind that single family homes that qualify for an exemption still require you to notify tenants. If you manage a mixed portfolio, you don’t want to be relying on memory or spreadsheets to track which properties are exempt.
Compliance solution
With Yardi Breeze, rent cap calculations happen automatically. The system flags any increase that exceeds AB 1482 limits. Lease templates stay updated with the required disclosure language, and exemption tracking is tied to the property record.
New rules for security deposit refunds under AB 414
Security deposit disputes are one of the most common sources of landlord-tenant conflict, and AB 414 makes the refund process more specific.
Move-out statements can now be delivered by email if both parties agree. Electronic refunds are available when tenants pay rent electronically. And for multi-tenant households, refunds require a written agreement to split.
This means in a unit with multiple adults who pay rent through different methods, you now need to track payment methods at the tenant level, not just the lease level. You also need to notify tenants of their right to receive refunds electronically before the lease ends.
Compliance solution
AB 414 introduces added complexity to lease agreements. That’s where property management software simplifies each component of this bill:
- Automate move-out statements
- Track payment methods per tenant
- Generate compliant refund documentation
- Keep records of everything, in one place
Tenant screening changes under AB 2493
AB 2493 tightens the rules around screening fees. Property managers now have two lawful options:
1. First-come, first-qualified. You process applications in the order received, provide written rental criteria with the application and charge a screening fee only if or when the unit is available.
2. Charge a fee regardless of processing order. If you do this, you must refund the full fee to every applicant who isn’t selected. Refunds are due within seven days of tenant selection or 30 days after receiving the payment, whichever comes first.
For both options, the Investigative Consumer Reporting Agencies Act (ICRAA) requires you to provide credit reports to every applicant within seven days of receipt.
Compliance solution
Consistency is key to efficiency as well as compliance. You need a system that timestamps application queues, tracks fee refund deadlines and automatically delivers credit reports. That’s how you remove inconsistencies that lead to disputes.
Internet opt-out rights under AB 1414
AB 1414 gives tenants the right to opt out of bundled internet services for all tenancies that started or continued after January 1, 2026. It applies to all wired, wireless, cellular or satellite services included in the tenancy.
Landlords cannot retaliate against tenants who exercise the opt-out. If the landlord fails to allow it or continues charging after a tenant opts out, the tenant can deduct the internet cost directly from rent.
Compliance solution
From an operations standpoint, this means tracking opt-out status at the unit or tenant level. You also need to make sure billing adjusts automatically when an opt-out is recorded. If your billing system doesn’t talk to your lease records, things can get messy.
Automation & hands-off compliance: The secret to success
The common thread across all four of these bills is the same: more data, more conditional logic and more documentation.
- AB 1482 requires current lease language and exemption tracking
- AB 414 requires tenant-level payment tracking, adapted refund processes and automated move-out statements
- AB 2493 requires timestamped application queues and fee refund tracking
- AB 1414 requires unit-level opt-out tracking tied to billing
On the surface, they’re all fairly easy to understand. But they’re hard to execute collectively with manual processes. That’s why you need a property management platform that keeps your leasing workflows compliant.
Make sure the system you’re using simplifies rather than adds to the confusion. This is where Yardi Breeze excels, so check us out!
Disclaimer
This article is based on a presentation by John Limburg of Yardi and Lan Fullerton of Kimbell, Tirey & St. John LLP at the 2026 CALNARPM Conference in Napa, California. It is intended for general informational purposes and does not constitute legal advice. Consult a qualified attorney for guidance specific to your properties and operations.
