Steve Welty

Issue# 80

December 2025

Happy Saturday, Housing Heroes!

As we close out the final newsletter of the year, we want to start with a simple thank you. We hope you’ve had a great holiday season, and we’re wishing you and your families a healthy and successful New Year.

And as always, thank you for spending part of your Saturday with us. We know your weekends are valuable, and we genuinely appreciate you reading along each week.

Last week, we looked back at what did and didn’t happen in California housing policy this year. A number of aggressive proposals stalled, several new laws did move forward, and the overall theme was clear: more rules, more documentation, and less margin for error.

This week, we want to briefly look ahead.

Because while 2025 may be wrapping up, 2026 is already coming into focus, and there are a few updates housing providers should absolutely keep on their radar.

Looking Ahead to 2026: What to Watch

Security Deposit Changes (AB 414)

One of the most impactful updates for day-to-day operations involves changes to how security deposits are handled.

AB 414 introduces new rules around:

How and when security deposits must be returned
Expanded options for electronic refunds
New notice requirements
Default procedures for multi-tenant households
The ability for landlords and residents to mutually agree on alternative return methods

Because nearly every housing provider deals with security deposits, this law is expected to affect a wide range of owners and managers, not just large portfolios. It’s a good reminder that even routine processes deserve a closer compliance check heading into the new year.

Habitability Standards: Stoves & Refrigerators (AB 628)

Starting January 1, 2026, stoves and refrigerators will be added to California’s habitability standards for leases that are entered into, amended, or extended after that date.

For many owners, this won’t change much, especially if you already provide and maintain these appliances. For others, it may require new installations, replacement planning, and budget adjustments.

The law doesn’t dictate specific models or features, but it does require that both appliances be provided and maintained in good working order. For owners who historically didn’t supply one or both, this is something worth planning for early.

Final Thought as We Head Into the New Year

None of these updates are meant to make operations easier. Instead, they reinforce a trend we’ve been watching for years:

More procedural rules
Higher documentation standards
Less room for inconsistency or informal practices

As we move into 2026, clean processes, clear policies, and proactive planning matter more than ever.

Thanks again for reading Housing Heroes every Saturday. We appreciate you being part of this community, and we’re looking forward to continuing the conversation in the new year.

Stay informed, enjoy the rest of your weekend, and we’ll see you next Saturday.

Have questions about managing your property?

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