California Real Estate Law Changes in 2026 Explained
Investment Properties Kristen Deschino January 2, 2026
Investment Properties Kristen Deschino January 2, 2026
California’s 2026 updates include meaningful changes that affect ADU approvals, landlord-tenant standards, and how listings can be marketed. Several of these laws are “procedural” on paper—but in a high-cost, high-demand market like Greater Los Angeles, streamlined timelines and clearer compliance rules can materially impact feasibility, cost, and risk.
Below is a clear summary of the most relevant 2026 changes, along with practical takeaways for homeowners, buyers, sellers, and investors.
Local agencies must act faster on ADU/JADU applications. The state tightened timelines and clarified processing expectations to reduce “slow-walking” of compliant projects and create more predictable outcomes for standard ADU builds.
More accountability at the “completeness” stage. Cities and counties must make timely determinations on whether an application is complete and provide clearer direction when additional items are needed—helping applicants avoid an endless cycle of resubmittals.
Better consistency across jurisdictions. These changes aim to reduce inconsistent local interpretation and bring more uniformity to ADU/JADU processing.
JADU owner-occupancy rules are narrower. Owner-occupancy requirements for JADUs are more limited than before, depending on whether the JADU shares key facilities with the primary residence.
JADUs are not short-term rentals. If rented, JADUs must be rented as longer-term housing—not as a short-term rental option.
Fewer delays and less uncertainty. Faster, clearer processing can reduce carrying costs and planning risk.
Improved feasibility for “standard” builds. When timelines are more reliable, homeowners and investors can plan more confidently.
More meaningful “income potential” when purchasing. Buyers evaluating ADU upside benefit from a smoother path to execution, provided the site is physically feasible and code-compliant.
Landlords must furnish a working stove and refrigerator in covered residential rental units beginning in 2026.
Recall protection. If an appliance is subject to a manufacturer or public recall, landlords must address it within a defined period after notice (repair or replacement, as applicable).
A limited written agreement exception may apply in certain scenarios related to refrigerators, depending on the lease structure and documentation.
For tenants: clearer expectations and reduced move-in costs.
For landlords and investors: a more standardized baseline for habitability and leasing reduces friction and helps avoid disputes.
For sellers of rentals: proactive compliance can help prevent renegotiations and reduce post-close issues, especially when leases renew under the new requirements.
Electronic refunds become the default in many scenarios when rent and deposits were paid electronically (unless another method is designated).
Clearer notice and documentation expectations regarding how deposit refunds and itemizations are delivered.
Additional clarity for multi-tenant situations to reduce disputes over who receives the refund and how it is issued.
Cleaner move-out procedures with better documentation and fewer delays.
Reduced conflict when delivery methods are standardized and clearly communicated.
If a tenancy is terminated due to qualifying damage or destruction, the law clarifies obligations related to returning advance rent covering periods after termination, within a defined timeframe.
The law also clarifies certain tenant rights and expectations around returning to the unit when it becomes safe and habitable again, unless the tenancy has been properly terminated.
With wildfires and other disasters affecting many communities, clearer rules help reduce uncertainty for both landlords and tenants during already difficult situations.
Certain required tenant-protection notices may be incorporated directly into the lease or rental agreement rather than handled only as separate documents.
Cleaner compliance and fewer missing addenda.
Better records for owners and property managers, especially in multi-unit or portfolio settings.
In covered scenarios, tenants may have the right to opt out of paying for certain third-party internet services provided via bulk billing arrangements.
The law includes remedies and anti-retaliation protections where applicable.
More transparency in billing and clearer tenant choice.
A lease template update is essential for landlords using bulk billing models.
If listing photos are digitally altered in a way that materially changes what is depicted (including certain AI-based alterations), the marketing must include a clear disclosure that the image has been altered.
The original, unaltered image must also be made available in a compliant manner when digitally altered images are used in marketing.
For buyers: improved transparency and fewer “photo-to-reality” surprises.
For sellers and agents: clearer standards help reduce risk tied to misrepresentation and marketing disputes.
These changes support a smoother process, but the strongest outcomes still come from thoughtful planning: site constraints, utilities, access, fire requirements, grading, and realistic budgets matter as much as the law.
Underwrite based on feasibility, not just possibility. A good strategy includes early review of zoning, setbacks, utility routing, parking impacts, and buildable area—and a realistic plan for permitting and construction.
Treat 2026 as a lease and operations refresh year:
Confirm appliance compliance for current and future tenancies
Update deposit return workflows and documentation
Review disaster contingencies and rent refund procedures
Update lease templates for notice language and bulk-billed services
Ensure marketing and listing workflows align with digital image disclosure rules
Strong compliance and clean documentation are part of strong presentation. For properties with ADUs, rentals, or value-add components, organized records and clear disclosures reduce friction and protect pricing during negotiations.
Real estate law changes create opportunities when you understand them early—and risk when you discover them late. If you’re planning a sale, purchase, rental strategy, or ADU build in 2026, we are always available to help you evaluate feasibility, timelines, and the smartest way to structure your next move.
Who you choose to represent your interests in real estate matters. The brokerage with whom you partner with guides you through the sale or acquisition of a subject property, while advocating on your behalf, and serving as a fiduciary and trusted asset advisor. With distinct standards and dynamic experience, the 35 Oaks team provides exclusive listing services for home and land sellers, and buyer representation for those seeking to purchase real property or vacant land.
