Who is Responsible for Leasehold Improvements in Rentals

California landlords and tenants are heading into 2026 with a significantly updated rulebook. New laws change who pays for what, what must be provided in a rental unit, and how disputes over repairs and deposits are handled. For anyone renting out or living in a property in the state, the practical stakes are high: a working refrigerator and stove will soon be a legal requirement, and tenants will have new rights to opt out of bundled internet fees. Here’s what you actually need to know.

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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.

2026
Year major California habitability and lease changes take effect
California Legislative Information

30 days
Deadline for landlords to repair or replace recalled appliances
AB 628

6 months
Maximum stay of eviction for tenants with delayed Social Security benefits
AB 246

21 days
Timeline for landlords to return security deposits after move-out
California Civil Code

These aren’t minor tweaks. The 2026 updates touch the core of the landlord-tenant relationship: what a rental unit must contain, who fixes it when it breaks, and what happens when payments go wrong. The changes affect everything from new leases signed in January to existing month-to-month tenancies that renew after that date. If you’re a tenant, you get clearer rights to basic appliances and a way out of paying for services you never wanted. If you’re a landlord, the cost of compliance just went up, and the margin for error got thinner.

What ties these laws together is a shift in responsibility. The old assumption that a tenant could waive their right to a habitable unit in a lease is gone. So is the idea that a landlord can bundle a tenant into an internet subscription without offering an exit. The hidden fees buried in lease contracts are now more visible, and in some cases, illegal to enforce without consent.

Refrigerators and stoves become mandatory
Starting January 1, 2026, landlords must provide a working refrigerator and stove in every rental unit unless a specific exemption applies. Recalled appliances must be fixed or replaced within 30 days.

Tenants can opt out of bundled internet fees
AB 1414 gives tenants the right to cancel third-party subscription services tied to the tenancy. Landlords who keep charging after an opt-out risk tenants deducting those fees from rent.

Social Security delays become an eviction defense
AB 246 allows tenants facing eviction due to delayed or reduced Social Security benefits to request a stay of proceedings for up to six months, provided they show proof and a repayment plan.

Security deposit refunds go digital
AB 414 requires landlords to return deposits using the same method the tenant used to pay — electronic refunds for electronic payments — unless both parties agree otherwise in writing.

These four changes form the backbone of the 2026 update. But to understand who is responsible for what, you need to start with the legal concept that underpins all of it: the warranty of habitability.

Warranty of Habitability
A legal doctrine, codified in California Civil Code Sections 1941–1942.5, that requires landlords to maintain rental units in a livable condition. Tenants cannot waive this right, and lease clauses that try to shift essential repairs onto tenants are unenforceable.

What I tend to notice is that many tenants assume a broken stove is just an inconvenience they have to live with. Under the warranty of habitability, it’s the landlord’s legal obligation to fix it. The 2026 laws don’t create this duty — they reinforce it by naming specific appliances and setting clear deadlines.

What the 2026 Laws Actually Cost Landlords and Tenants

The headline cost of these changes lands squarely on landlords. Providing a working refrigerator and stove in every unit isn’t cheap. A basic refrigerator runs several hundred pounds, and a stove costs similar. For a landlord with multiple properties, the upfront expense adds up fast. But the real cost isn’t just the appliance — it’s the ongoing maintenance and replacement cycle. Recalled appliances must be repaired or replaced within 30 days, which means landlords need a system for tracking recalls and a budget for emergency replacements.

Tenants face a different kind of cost: the risk of rent increases tied to these new requirements. Landlords who absorb the cost of new appliances may pass it on through higher rents, though California’s rent control laws in many cities limit how much and how often rents can rise. The trade-off is clearer legal protection and, in many cases, a better standard of living.

The table below breaks down the key cost areas affected by the 2026 laws.

→ Scroll right to see all columns

Source: Property Management Pleasanton
Cost AreaWho Bears ItWhat Changed in 2026
Refrigerator and stove purchaseLandlordNow mandatory for all units; previously negotiable or absent
Appliance recall replacementLandlord30-day deadline introduced; no previous statutory timeline
Internet subscription feesTenant (if opted in)Tenant can now opt out; landlord cannot retaliate
Security deposit processingLandlordElectronic refunds required if tenant paid electronically
Eviction proceedings (Social Security cases)LandlordUp to 6-month stay possible; landlord loses rental income during delay

One figure stands out above the rest. The 30-day recall replacement deadline is the tightest statutory timeline in this package. Miss it, and the unit may be considered uninhabitable, giving the tenant grounds to withhold rent or terminate the lease. That single deadline can cost a landlord thousands in lost rent and legal fees.

The 30-Day Recall Clock
Under AB 628, if a refrigerator or stove is recalled, the landlord has 30 days to repair or replace it. After that, the unit may be deemed uninhabitable. Tenants can legally withhold rent or break the lease without penalty.

Common Mistakes Landlords and Tenants Make With the New Rules

Assuming a lease can override habitability requirements

Some landlords still include clauses that require tenants to repair or maintain essential components like the stove or refrigerator. Under California Civil Code 1941.1, those clauses are unenforceable. A tenant who signs such a lease isn’t bound by it. The landlord remains responsible. If you’re a tenant and your lease says you’re responsible for appliance repairs, that clause won’t hold up in court. The fix is straightforward: send a written request for the repair, cite the warranty of habitability, and keep a copy for your records.

Ignoring the opt-out right for bundled internet services

AB 1414 is easy to overlook because it’s about a service, not a physical repair. But the financial impact is real. A tenant paying £30–£50 per month for internet they don’t want can now opt out. If the landlord keeps charging, the tenant can deduct that amount from rent. Landlords who fail to update their lease templates or train their staff on this requirement risk losing income and facing retaliation claims. The process for opting out should be clearly stated in the lease. If it isn’t, tenants should send a written opt-out notice and keep proof of delivery.

Mishandling security deposit refunds after electronic payments

AB 414 changes how deposits are returned. If a tenant paid their deposit electronically — by bank transfer, credit card, or payment app — the landlord must refund it the same way unless both parties agree otherwise in writing. Landlords who mail a cheque to a tenant who paid electronically are in violation. The 21-day return timeline still applies. Tenants who don’t receive their refund within 21 days should send a written demand and, if necessary, file a small claims case. A landlord-tenant lawyer can help navigate disputes over deposit deductions.

Underestimating the cost of post-disaster cleanup

SB 610 makes landlords responsible for removing disaster-related hazards like smoke damage, ash, mold, and water damage after a natural disaster. Tenants are not required to live in unsafe conditions, and rent is not owed during mandatory evacuation periods. Landlords who delay cleanup risk the unit being declared uninhabitable. The practical cost here is significant: professional mold remediation, debris removal, and structural drying can run into thousands of pounds. Landlords should review their insurance policies to confirm they have adequate coverage for these scenarios.

How to Handle Leasehold Improvements and Repairs Under the 2026 Rules

Identifying who pays for what

The starting point is the warranty of habitability. Anything that makes the unit unsafe or unfit for living is the landlord’s responsibility. That includes structural elements, plumbing, electrical systems, heating, and now, under AB 628, refrigerators and stoves. Cosmetic improvements — new paint, upgraded countertops, better flooring — are typically the landlord’s choice unless the tenant negotiates them in exchange for a rent increase or a longer lease term. Tenants who want improvements should get everything in writing before any work starts.

Handling appliance repairs and replacements

Under AB 628, the landlord must provide a working refrigerator and stove. If either breaks, the tenant should notify the landlord in writing. The landlord must repair or replace it within a reasonable time. If the appliance is recalled, the 30-day clock starts ticking. Tenants should document the date of the request and any follow-up. If the landlord fails to act, the tenant may have the right to withhold rent or repair and deduct, but only after following the proper legal process. A large digital safe can help tenants store important documents like repair requests and lease agreements securely.

Navigating the opt-out process for bundled services

AB 1414 requires landlords to allow tenants to opt out of third-party subscription services tied to the tenancy. The process should be straightforward: the tenant sends a written notice to the landlord stating they want to opt out. The landlord must stop charging for that service. If the landlord continues to charge, the tenant can deduct the amount from rent. Landlords should review their contracts with internet providers and update their lease templates to include a clear opt-out clause. Retaliation against a tenant who opts out is prohibited.

Preparing for future habitability standards

SB 655 directs California state agencies to establish maximum indoor temperature standards. While no specific temperature limit has been set yet, landlords should start planning for cooling requirements. That could mean installing air conditioning, improving insulation, or providing portable cooling units. The cost of retrofitting older buildings for cooling is substantial, and landlords who wait until the standards are finalised may face a scramble to comply. Tenants in buildings without cooling should monitor this issue and be ready to request accommodations once the standards are published.

Frequently Asked Questions

Can a tenant withhold rent if the landlord doesn’t provide a working stove?
Yes, but only after following the proper legal process. The tenant must notify the landlord in writing, give a reasonable time to fix the issue, and then follow California’s repair-and-deduct or rent-withholding procedures. Withholding rent without following these steps can lead to eviction.
Does AB 1414 apply to existing leases or only new ones?
It applies to tenancies that are month-to-month or renewed on or after January 1, 2026. Fixed-term leases signed before that date are not affected until they renew or convert to month-to-month.
What happens if a landlord doesn’t return a security deposit within 21 days?
The landlord may be liable for the full deposit amount plus damages. Tenants can file a small claims case to recover the deposit. The 21-day clock starts from the date the tenant vacates the unit.
Are landlords required to provide air conditioning under the new laws?
Not yet. SB 655 directs state agencies to establish maximum indoor temperature standards, but no specific requirement exists as of 2026. Landlords should monitor this issue for future compliance obligations.
Can a tenant be evicted for opting out of internet service?
No. AB 1414 explicitly prohibits retaliation against tenants who opt out of bundled subscription services. If a landlord tries to evict for this reason, the tenant has a legal defense.
What proof does a tenant need for a Social Security delay eviction defense?
The tenant must show proof of the Social Security delay or interruption from the federal government and present a reasonable plan to repay the rent once benefits are restored. The court may stay eviction for up to six months.

The 2026 Laws Shift the Balance of Responsibility

The 2026 California rental laws don’t just add new rules — they change who bears the cost and risk of maintaining a rental unit. Landlords now carry clearer obligations for appliances, disaster cleanup, and service fees. Tenants gain enforceable rights to basic amenities and protection from financial disruptions beyond their control. The practical effect is that both sides need to be more careful about what’s in the lease, how repairs are handled, and what happens when things go wrong. The days of assuming a tenant will just put up with a broken stove or a forced internet bill are over.

Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.

If this was useful, you might also want to read Understanding Rental Deposit Refund Disputes When Renting in Canada.

Sources and Further Reading

Hidden Lease Contract Fees to Watch For When Renting in Canada — A practical guide to spotting and challenging hidden fees in rental agreements, relevant to the opt-out provisions in AB 1414.

Property Management Pleasanton (2025). The 2026 California Landlord Law Update: A Practical Guide for Rental Owners. 🔗

Inland Legal (2025). Housing and Other California Law Changes in 2026. 🔗

Mesa Properties (2025). 2026 Rental Law Updates and Compliance Guide for California Landlords. 🔗

Park Glen Management (2025). California Rental Property Repairs: A Must-Read Guide for Tenants and Landlords. 🔗

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Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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