Bill > AB1248

This bill adds Section 1950.2 to the California Civil Code to regulate rental fees and increase transparency in residential rental pricing. The bill requires landlords to include the full price of rent, including all required fees and charges, in their advertisements starting April 1, 2026, and to clearly describe any optional housing services with their associated costs. For new residential tenancies beginning on or after January 1, 2026, tenants will only be obligated to pay rent, security deposits, and certain prescribed fees, such as rent stabilization fees. The bill prohibits landlords from using complex utility billing systems (ratio utility billing systems) except for water and sewer services, and establishes strict requirements for how those utility costs can be allocated. Landlords will be required to provide detailed information about utility costs and cannot change the allocation method in a way that increases tenant costs. The bill also mandates that any tenant payments first be applied to current rent, then to outstanding rental debt, and prohibits charging late fees for late payment of previously charged late fees. Violations of these provisions can result in civil action, with potential damages of at least $1,000 and possible treble damages for willful misconduct. The bill aims to promote housing stability, transparency, and fairness in rental pricing by creating clearer expectations for both landlords and tenants.

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https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1248