The Shift in California Habitability: Understanding AB 628
For decades, the Southern California rental market operated under a unique cultural norm. Unlike the East Coast or even Northern California, it was common for landlords in Los Angeles, San Diego, and the Inland Empire to list apartments without a refrigerator or stove. Tenants were often expected to haul their own heavy appliances from one rental to the next. However, as of January 1, 2026, those days are officially over. Assembly Bill 628 (AB 628) has fundamentally redefined the legal definition of a habitable dwelling in the Golden State.
Under AB 628, all new leases signed on or after January 1, 2026, must include a functional refrigerator and a stove or range. This is no longer an optional amenity or a point of negotiation; it is a mandatory requirement for any residential rental unit. At McIntire Kingstone, we recognize that for many Southern California property owners—especially those managing older rent-controlled buildings in Los Angeles or Orange County—this represents a significant shift in operational costs and liability management.
Southern California’s Unique Transition: Why the Impact is Local
While state laws apply to everyone, the practical impact of AB 628 is felt most acutely in Southern California. Historically, markets like the San Francisco Bay Area already included appliances in most rentals. Conversely, in regions like the San Gabriel Valley, Riverside, and coastal San Diego, the "bring your own fridge" model was a standard practice that helped landlords keep rents slightly lower while avoiding maintenance headaches.
The End of the "Appliance-Free" Listing
The legislative intent behind AB 628 was to lower the barrier to entry for renters. Moving costs in Southern California are already among the highest in the nation. By requiring landlords to provide these essential items, the state aims to reduce the immediate financial burden on moving tenants. However, for property owners in Orange County and San Bernardino, this means immediate capital expenditures for units currently hitting the market.
Regional Variations in Implementation
In high-density areas like Los Angeles, where smaller studio apartments and "bachelor" units are common, owners must now ensure that kitchens are properly outfitted with at least a two-burner stove and a refrigerator capable of maintaining safe food temperatures. This may require minor kitchen renovations if the existing cabinetry was not designed to accommodate standard appliance sizes.
The Maintenance and Liability Mandate
One of the most critical aspects of AB 628 is not just the provision of the appliance, but the duty to maintain. Under previous California law, if a landlord provided an appliance as a courtesy, the lease could often state that the tenant was responsible for repairs. That is no longer the case for essential appliances under the new mandate.
The Legal Obligation to Repair or Replace
Because refrigerators and stoves are now tied to the legal definition of habitability, a broken appliance constitutes a habitability violation. If a refrigerator fails in a rental property in Riverside or Long Beach, the landlord is legally obligated to repair or replace it within a reasonable timeframe (typically 72 hours for urgent food-safety issues). Failure to do so could result in the tenant using "repair and deduct" remedies or, worse, facing a lawsuit for breach of the implied warranty of habitability.
Managing Liability for Tenant Negligence
While the landlord is responsible for normal wear and tear, AB 628 does not give tenants a free pass to mistreat equipment. Property owners should document the condition of appliances at move-in with high-resolution photos and model/serial numbers. If a stove is damaged due to a grease fire caused by tenant negligence, the landlord may be able to charge the tenant for the repair, but the repair must still be facilitated by the owner to ensure the unit remains habitable.
Strategic Budgeting: Sourcing and Tax Implications
Transitioning a portfolio to meet AB 628 requirements requires careful financial planning. For owners of multi-family buildings in the Inland Empire, the cost of outfitting twenty or thirty units simultaneously can be a shock to the cash flow.
Sourcing Durable, Cost-Effective Appliances
- Prioritize Longevity over Features: Avoid "smart" appliances with complex touchscreens and Wi-Fi connectivity. These are prone to expensive electronic failures. Stick to reputable brands with mechanical controls that are easily serviced by local repair technicians.
- Standardize Your Portfolio: Try to purchase the same make and model for all units. This allows you to keep a small stock of common replacement parts (like heating elements or door seals) and simplifies maintenance for your property management team.
- Consider Scratch and Dent: For high-turnover units, purchasing new "scratch and dent" appliances from wholesalers in Los Angeles or Orange County can save 30-50% while still providing a full manufacturer's warranty.
Tax Implications and Capital Improvements
The good news is that these appliances are generally considered capital improvements or depreciable assets. In many cases, you can utilize Section 179 expensing to deduct the full cost of these appliances in the year they are placed in service, rather than depreciating them over five to seven years. We recommend consulting with a tax professional familiar with California real estate law to maximize these benefits.
Updating Lease Agreements for 2026
Your current lease template likely needs a complete overhaul to remain compliant with AB 628. Simply providing the fridge is not enough; you must define the terms of its use to protect your investment.
Essential Language for New Leases
- Inventory and Condition: Explicitly list the make, model, and condition of the stove and refrigerator. State that these items are properties of the landlord and must remain in the unit.
- Reporting Procedures: Clearly outline how tenants should report appliance malfunctions. In Southern California's heat, a broken fridge is an emergency. Define your "reasonable response time" to manage tenant expectations.
- Restricted Use: Prohibit tenants from attempting their own repairs or hiring unauthorized handymen, which could void warranties or create safety hazards (especially with gas stoves).
- The "No Extra Fridge" Clause: Many tenants in Riverside and San Bernardino like to keep a second old refrigerator in the garage. Consider adding language regarding the energy usage or safety of additional appliances to prevent circuit overloads.
Practical Advice for Southern California Landlords
As we navigate this new era of property management, McIntire Kingstone recommends an active approach. Don't wait until a unit becomes vacant to think about your appliance strategy. Conduct an audit of your current portfolio now. Which units currently lack appliances? Are the electrical outlets in those kitchens grounded and capable of handling a modern refrigerator? Is there a gas shut-off valve for the stove space?
In cities like San Diego or Irvine, tenants have high expectations for the quality of their living space. Beyond just meeting the legal minimum of AB 628, providing energy-efficient, stainless steel appliances can actually help you attract higher-quality tenants and justify higher rents, potentially offsetting the initial cost of the appliance mandate.
Ultimately, AB 628 is a significant change, but it is one that can be managed with the right professional guidance. By standardizing your equipment, updating your legal documents, and budgeting for long-term maintenance, you can ensure your Southern California investment properties remain profitable and compliant throughout 2026 and beyond.
