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Did Your Lease Paperwork Keep Up With 2026?
Pull out your last signed lease and ask: would it hold up if a tenant challenged it today? Between new habitability rules, stricter deposit procedures, a fresh rent cap, and a new City of San Mateo ordinance, many Peninsula owners are using forms that quietly went stale.
This recap covers the California rental laws that matter most right now and what each one requires. Kenny Realty has managed rentals across San Mateo and San Francisco Counties since 1967, and our team currently oversees more than 800 units on the Peninsula.
Key Takeaways
These five points summarize the compliance changes Peninsula landlords should act on first.
- Rent cap reset: Covered units in San Mateo County can rise by up to 8.8% for increases taking effect August 1, 2026, through July 31, 2027.
- Appliances are habitability items: Leases entered into, amended, or extended since January 1, 2026, must include a working stove and refrigerator.
- Deposits need proof and the right refund method: Photos are mandatory, and tenants who paid electronically generally get their refund electronically.
- Internet bundles are optional: Tenants can opt out of landlord-arranged internet subscriptions.
- The City of San Mateo adds its own layer: Protections start at 11 months, with strict relocation and bilingual notice rules.
Rent Caps Reset for the 2026–2027 Cycle
The most time-sensitive change for many owners is the new maximum rent increase that took effect on August 1.
The New Number for San Mateo County
The California Tenant Protection Act (AB 1482) limits annual increases on covered units to 5% plus the regional change in the Consumer Price Index, with a 10% ceiling. San Mateo County uses the San Francisco-Oakland-Hayward index, which rose 3.8% for the 12 months ending in April 2026, according to the U.S. Bureau of Labor Statistics.
That sets the cap at 8.8% for increases taking effect between August 1, 2026, and July 31, 2027. The previous 6.3% cap expired July 31, 2026.
Protecting Your Single-Family Exemption
Single-family homes and condominiums can be exempt from the cap, but only when the owner is not a corporation or real estate investment trust, and the tenant received the written exemption notice the statute requires. For newer tenancies, it belongs in the lease.
Without that language, the exemption fails, and an outdated lease template can expose you to the cap.
A Working Stove and Refrigerator Are Now Required
California added two appliances to its habitability checklist this year.
Under AB 628, leases entered into, amended, or extended on or after January 1, 2026, must include a stove and refrigerator maintained in good working order. If either appliance is recalled by the manufacturer or a public entity, the landlord has 30 days from notice of the recall to repair or replace it.
Tenants may agree at lease signing to supply their own refrigerator, subject to conditions in the law. Our AB 628 breakdown covers the details, and our property maintenance services keep appliance repairs from becoming habitability complaints.
Security Deposits Now Run on Photos and Electronic Refunds
Two laws have reshaped how Peninsula landlords document and return deposits.
Mandatory Photos at Move-In and Move-Out
AB 2801 requires landlords to photograph a unit after the tenant returns possession but before any repairs or cleaning they plan to deduct, then again once that work is finished. For tenancies that began on or after July 1, 2025, landlords must also photograph the unit at or immediately before move-in.
Those photos must accompany your itemized statement, or even a legitimate deduction becomes hard to defend.
Electronic Refunds for Electronic Payers
AB 414 changed the default refund method starting January 1, 2026. If you received the deposit or rent electronically, the remaining deposit generally must go back electronically unless you and the tenant agreed in writing to another method.
The 21-day deadline hasn't changed. Our guide to AB 414 explains the multi-tenant rules, and our detailed financial reporting records how every payment arrived.
A lease is only as strong as the most recent law it reflects, and this year rewrote several of them.
Tenants Can Now Opt Out of Bundled Internet
Bulk-billed internet packages remain legal, but tenants can no longer be forced to pay for them.
AB 1414 covers tenancies commenced, renewed, or continuing month-to-month on or after January 1, 2026. Landlords must let tenants opt out of paying for a third-party wired internet, cellular, or satellite subscription offered with the unit.
If a landlord refuses, the tenant may deduct the subscription cost from rent, and retaliation is prohibited. Owners with building-wide provider agreements should update their lease language now.
City of San Mateo’s Residential Tenant Protection Program
Owners with rentals inside City of San Mateo limits face local requirements that go beyond state law.
Ordinance No. 2025-11 added Chapter 10.100 to the San Mateo Municipal Code, effective December 31, 2025. It supplements state just-cause rules and applies only within the city, not the entire Peninsula.
Bilingual Notice of Tenant Rights
Covered landlords must give tenants a notice of rights in English and Spanish, in at least 12-point type. New or renewed tenancies receive it as a lease addendum or signed notice, and existing tenants were due to receive it by February 1, 2026.
Protection Starts at 11 Months
State law generally applies just-cause protection after 12 months. The city extends no-fault just-cause protections to tenants who have continuously and lawfully occupied the unit for 11 months.
Relocation Payments on a Strict Schedule
A no-fault termination, such as an owner move-in or a substantial remodel under the standards tightened by SB 567, requires relocation assistance equal to one month's rent. Half is due within 15 calendar days of serving the notice, and the remainder can be a written waiver of final-month rent or a cash payment by move-out.
You must disclose the payment amount when you serve the notice, and any failure to strictly comply voids the termination. After a remodel, you must also notify the former tenant once the unit is available again.
On the Peninsula, compliance depends on your address as much as your lease, so a notice that works in one city can fail a few miles away.
Eviction Timelines Have Gotten Longer
Two changes give tenants more time and a new defense in unlawful detainer cases.
Ten Court Days to Answer
Since January 1, 2025, AB 2347 has given tenants 10 court days, excluding weekends and judicial holidays, to respond to an unlawful detainer summons. That doubled the prior five-day window, so expect longer cases.
Social Security Hardship Defense
AB 246, the Social Security Tenant Protection Act of 2025, lets a tenant raise a hardship defense in a nonpayment eviction. If the tenant proves benefits were terminated, delayed, or reduced through no fault of their own, the court must stay the case until 14 days after benefits resume or six months, whichever comes first.
The rent is still owed, and the tenant must pay it or enter a payment plan within 14 days of restoration. The law runs until January 20, 2029. Thorough tenant screening is still the best way to stay out of court, and our eviction services coordinate with an attorney when a case gets there.
Frequently Asked Questions
Here are answers to the questions Peninsula owners ask us most about this year's changes.
What is the maximum rent increase in San Mateo County right now?
For units covered by AB 1482, the cap is 8.8% for increases taking effect from August 1, 2026, through July 31, 2027. Exempt units follow different rules.
Does the City of San Mateo ordinance apply to my property in another Peninsula city?
No. Chapter 10.100 covers property within the City of San Mateo only, while the state laws above apply statewide. Local rules vary, so confirm the requirements where each property sits.
Do I need move-in photos for a tenant who moved in before July 1, 2025?
No. Move-in photos apply to tenancies beginning on or after July 1, 2025, but move-out and post-repair photos have been required since April 1, 2025.
Stay Compliant and Keep More of Your Rental Income
California's rental rules shifted on several fronts this year, and owners who refresh their leases, notices, and move-out routines now avoid the errors that void notices and sink deposit claims.
Kenny Realty has guided Peninsula owners through changing laws for more than 50 years. Call at 650.589.6422 or schedule a consultation to review your portfolio, and see what owners say in our client testimonials. Have a question first? Contact us today.
Evan has been in the real estate and property management field for 6+ years. He is experienced in working with first time home buyers, is an Accredited Buyer’s Representative (ABR®), Seller Representative Specialist® (SRS) and Seniors Real Estate Specialist®(SRES®). He also works closely with Kenny Realty owners, getting their rental properties rented as quickly as possible. Evan is responsible for monitoring rental market conditions and advising our owners on market rates. He has outstanding communication with all clients he works with, keeping everyone in the loop at all times. He is the third generation of the Kenny family to practice property management on the peninsula.