For years, renting in California followed a familiar, straightforward pattern. A property would be advertised at a competitive base rent, and later in the process, tenants would discover additional charges for parking, trash service, tech portals, or “benefits packages.”
However, as of January 1, 2026, this approach is no longer permitted.
California’s new “junk fee” ban (AB 1248) introduces a simple but far-reaching requirement: total price transparency. Any mandatory fee a tenant pays must be included in the advertised rental price. No asterisks. No fine print. No surprises after the showing.
Properties advertised incorrectly can face tenant disputes, enforcement actions, and potential lawsuits. Even well-intentioned owners can stumble if their listings don’t reflect the full, legally required rent.
At Scout Property Management, we’ve already begun auditing owner portfolios to align listings with the 2026 requirements. Our efforts protect landlords from risk while preserving profitability.
In this guide, we will outline the changes to California rental laws for landlords in 2026. Moreover, we will provide solutions to remain compliant in the ever-changing real estate legal landscape.
What Counts as a “Junk Fee?”
With California’s new junk fee ban, landlords must understand the distinction between mandatory and optional fees.
If a tenant is obligated to pay a fee to live in the property, it is considered mandatory. This means it must be included in the advertised rent, not listed separately.
Examples of mandatory fees that landlords must now disclose as part of the rental price include:
- Residential Benefits Packages
- Valet trash services
- Required technology or tenant portals
- Mandatory parking or storage fees
If tenants don’t have a real choice to opt out, these costs are considered part of the rent.
Optional fees include on-site amenity fees, storage units, or third-party subscription services like Wi-Fi or cable. If the tenant does not require these services to live in the property, they may be listed separately.
The “Discount” Trap
Previously, landlords could offer discounts or move-in specials to tenants. However, under the new regulations, landlords may no longer use a move-in special to mask the true rent price.
If you advertise a discounted rate, the duration of the discount and the full rent after the special must be clearly disclosed. When disclosing the true price, it must not be in the fine print or a smaller font. Instead, it must be clearly visible and understood by the tenant.
Utility Billing (RUBS) Restrictions
Utility billing is one of the most misunderstood areas of the new law. In 2026, landlords can no longer use vague or open-ended utility charges that shift unpredictable costs to tenants.
If utilities are billed using the Ratio Utility Billing System (RUBS), the calculation method must be clearly disclosed before a tenant applies. It cannot be buried in the lease.
Charges must be based on a consistent, objective formula, such as square footage or occupancy. Additionally, landlords may not mark up utilities beyond the actual cost.
In single-family homes or small multi-unit properties in Temecula and Riverside County, failure to clearly explain how utilities are calculated can expose landlords to disputes and refund demands.
Beyond Fees: The 2026 Maintenance Mandates
In California, the junk fee ban isn’t the only regulatory change landlords need to prepare for. The state is also tightening enforcement around maintenance and habitability. And these rules carry serious financial consequences if ignored.
Appliance Replacement if Recalled
A new rental regulation draws increased attention to appliance recalls. Landlords are now expected to monitor recall notices and repair or replace affected appliances within 30 days. These include ranges, heaters, and laundry units.
Failing to act can expose owners to habitability claims, even if the appliance hasn’t malfunctioned yet.
Post-Disaster Compliance
For landlords in Temecula and throughout Riverside County, post-disaster compliance is another critical issue. Under SB 610, if a property is affected by a wildfire, flood, or similar disaster, landlords face aggressive remediation timelines.
Ash, smoke residue, water damage, and debris must be properly addressed before rent can legally be collected again. Temporary cleanups or cosmetic fixes may no longer be sufficient.
Why High-Touch Management Wins in California’s 2026 Rental Market
Successful property management in California isn’t about cutting costs or automating everything. It’s about precision, transparency, and accountability. The junk fee ban, new maintenance mandates, and tighter enforcement standards have raised the bar for landlords.
This is where high-touch management matters.
At Scout Property Management, we combine high-tech transparency with a single point of contact approach that automated platforms can’t replicate. Owners aren’t left guessing whether their listings comply, if disclosures are correct, or whether a maintenance issue could trigger a legal problem.
We proactively audit pricing, monitor regulatory changes, and manage compliance before issues surface.
Our goal isn’t just to avoid fines or disputes. It’s to protect (and maximize) your rental income, minimize vacancy, and preserve long-term asset value. In a regulatory environment where one mistake can lead to tenant claims or lawsuits, having an experienced, local property manager is essential.
Don’t risk a junk fee dispute or a habitability claim. Let Scout Property Management audit your Temecula or North Riverside County rental for 2026 compliance today.
Contact us to see how we can help you maintain compliance in California’s regulatory rental landscape.
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