Back to Blog

Industry News Guide — 2026-04-01

As of February 2026, California enacted more landlord-tenant law changes than any year in the past decade. The most impactful updates include a hard 4% cap on LARSO rent increases (effective February 2, 2026), mandatory disaster remediation obligations under SB 610, a new two-month Fair Market Rent threshold for nonpayment evictions (effective April 16, 2026), and required appliance provisions under AB 628. Property owners in Los Angeles County who haven't adjusted their practices risk fines, tenant complaints, and costly legal exposure.

What Changed With LA Rent Stabilization (LARSO) in 2026?

The Los Angeles Rent Stabilization Ordinance was overhauled effective February 2, 2026. According to the LA Housing Department, the new rules impose a maximum annual rent increase of 4% — down from a formula that previously allowed increases as high as 10% during high-inflation periods.

Here's what the new LARSO formula looks like:

  • New calculation: 90% of average CPI, with a floor of 1% and a hard ceiling of 4%
  • Utility pass-throughs eliminated: The extra 1% landlords previously added for gas or electric coverage is gone
  • No more 10% occupant surcharge: Landlords can no longer add 10% when a tenant adds a dependent to the unit
  • Practical impact: A landlord with a $2,200/month RSO unit can now raise rent by $88 at most per year — not enough to cover a single plumbing call in most LA neighborhoods

A landlord in Van Nuys recently contacted the Law Office of Richard Jacobs after raising rent on an RSO unit by 5% — the same increase he'd done for years — and receiving a notice from the LA Housing Department. The rules had changed, and nobody told him. He's far from alone.

What landlords should do now: Review every RSO unit's rent history immediately. If you served a rent increase notice before February 2 using the old formula, you're likely compliant. Notices served after that date using the wrong percentage need correction before a tenant files a complaint.

What Does SB 610 Require Landlords to Do After a Natural Disaster?

Governor Newsom signed SB 610 into law following the Palisades and Eaton fires that devastated parts of LA County in early 2026. This law fundamentally rewrites landlord obligations after natural disasters in California.

Under SB 610, California landlords are now legally required to:

  1. Remove all hazards — smoke residue, ash, mold, asbestos, water damage — using licensed remediation contractors
  2. Suspend rent and all fees during mandatory evacuations
  3. Return prepaid rent within 10 calendar days after an evacuation order lifts (or allow the tenant to deduct it from next month's rent)
  4. Return security deposits if the unit becomes uninhabitable
  5. Allow tenants to terminate their lease without penalty if the unit can't be safely occupied
  6. Notify tenants once the unit is habitable again

Before SB 610, genuine ambiguity existed about who handled post-disaster cleanup. That ambiguity is gone — the burden falls squarely on the property owner.

The part that's hitting landlords hardest: remediation costs for smoke and ash damage routinely run $15,000 to $40,000 per unit, according to licensed remediation contractors in LA County. Many standard landlord insurance policies carry wildfire exclusions, meaning owners absorb that cost entirely.

What landlords should do now: Contact your insurance broker and confirm your policy covers disaster remediation as defined under SB 610. If it doesn't, upgrade before fire season. The Law Office of Richard Jacobs has been advising LA landlords on SB 610 compliance — reach out for a consultation.

How Does the New Two-Month FMR Threshold Affect Evictions for Nonpayment?

Effective April 16, 2026, California landlords can only terminate a tenancy for nonpayment if the tenant's past-due rent exceeds two months of Fair Market Rent (FMR) for their area — not two months of the tenant's actual rent, but two months of the HUD-published FMR for that zip code.

Example: If the HUD Fair Market Rent for a two-bedroom in your area is $2,200/month, the tenant must owe more than $4,400 before you can start the eviction process. A tenant one month behind? You wait. A tenant strategically paying just enough to stay below that line? You wait longer.

There's also a new procedural requirement: landlords must now file with the LA Housing Department within three business days of serving a notice of termination for nonpayment.

What landlords should do now: Document everything from day one. Keep meticulous records of rent payments, partial payments, and all communication. When the FMR threshold is met, move fast — file with LAHD within the three-day window and get your unlawful detainer filed correctly the first time. Having handled over 5,000 landlord-tenant cases across 20+ years of practice, the Law Office of Richard Jacobs recommends retaining counsel before serving any termination notice under the new rules.

Are Landlords Now Required to Provide a Stove and Refrigerator in California?

Yes. Under AB 628, effective January 1, 2026, every residential rental unit in California must include a working stove and a working refrigerator. This applies to all new leases, amended leases, and renewals.

For most LA County landlords, this is already standard. But owners of older units — particularly in areas where renting without a fridge was historically common — need to retrofit now. "Working" means actually functional. A decades-old appliance that barely cools doesn't meet the standard.

Estimated retrofit cost: $800 to $1,500 per unit for mid-range appliances, installed.

What Is the New Social Security Hardship Defense Under AB 246?

AB 246 introduces a new affirmative defense in nonpayment eviction cases. Tenants whose Social Security benefits were interrupted due to federal government action can now raise a "Social Security hardship" defense in unlawful detainer proceedings.

This doesn't erase the tenant's debt — they still owe back rent. But it can delay eviction, extend court proceedings, and add legal costs for landlords. This defense is already being raised in unlawful detainer actions across LA County as of early 2026.

What Should LA Landlords Do to Stay Compliant in 2026?

With this many simultaneous changes, a reactive approach won't cut it. Here's a compliance checklist based on the 2026 updates:

  1. Audit all RSO rent increases — confirm every notice served after February 2, 2026 uses the new 4% cap formula
  2. Review insurance coverage — verify your policy covers SB 610 disaster remediation obligations, including wildfire-related damage
  3. Update nonpayment procedures — adjust your eviction timeline to account for the two-month FMR threshold (effective April 16, 2026) and the three-day LAHD filing requirement
  4. Inspect all units for appliance compliance — ensure every unit has a working stove and refrigerator per AB 628
  5. Brief your property managers — anyone managing your units needs to understand these changes before they make a costly mistake
  6. Consult a landlord-tenant attorney — the cost of legal advice now is a fraction of the cost of a compliance violation later

The Law Office of Richard Jacobs represents LA County landlords on rent stabilization compliance, eviction defense, and SB 610 disaster obligations. Contact us for a consultation before these changes catch you off guard.

Related: eviction tips for Los Angeles landlords

Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Every legal situation is unique, and you should consult with a qualified attorney before taking action based on information in this article. Contact the Law Office of Richard Jacobs for a free consultation about your specific case.

Need Legal Help With This Issue?

This article provides general guidance, but your situation may require personalized legal counsel. Contact us for a free consultation.

Schedule Your Free Consultation
Or call us directly: (818) 538-6684