In Fair Oaks, most landlord problems do not start with a lawsuit. They start small: a renewal handled on autopilot, a notice template that is quietly outdated, a deposit deduction you cannot fully support, or a repair that lingers a few days too long.
In 2026, California makes those everyday moments more technical and more expensive when you get them wrong. The upside is clear: landlords with consistent rules, clean paperwork, and strong documentation face fewer disputes, steadier cash flow, and better tenant relationships. This article is educational, not legal advice.
Key Takeaways
- California’s Tenant Protection Act limits rent increases for many rentals and requires just cause for many terminations, with SB 567 tightening key no-fault options.
- Security deposits are generally capped at one month’s rent for most new, renewed, or extended agreements, and the 21-day return rule is strict.
- Starting January 1, 2026, a working stove and refrigerator become part of the baseline tenantability standard for many covered leases.
- Screening fees and rent reporting rules increasingly reward landlords who use written criteria, documented workflows, and calendar-driven compliance.
Clarify Your Jurisdiction: Fair Oaks vs. Sacramento City Limits
Fair Oaks is primarily an unincorporated Sacramento County community, so state law is usually the main rulebook. But boundaries matter more than most owners think. If your rental is inside the City of Sacramento, you may also be subject to local tenant protections and notice requirements that sit on top of state law.
A practical habit: before you raise rent, change lease terms, or serve any notice, verify whether your address is in County Fair Oaks or Sacramento city limits. That one step prevents a surprising number of expensive mistakes.
1) Mastering Rent Increases and Just Cause Under California’s Tenant Protection Act
For many California rentals covered by the Tenant Protection Act, rent increases are not a guessing game. The cap is typically 5 percent plus local inflation (CPI), with a hard ceiling of 10 percent total over any 12-month period. The cap is measured from the lowest rent charged in the prior 12 months, which can matter if you offered a temporary discount.
Just as important, the Tenant Protection Act adds just cause rules for ending many tenancies. That means you generally need a legally recognized reason, either at fault (such as nonpayment or lease violations) or no-fault (such as certain owner move-ins or qualifying remodels). For many no-fault terminations, the law also requires relocation assistance or a rent waiver equal to one month’s rent, handled in a specific way.
Where small landlords get burned: exemptions. Some single-family homes and condos can be exempt, but exemption status often depends on ownership details and the right disclosure language in the lease. Miss the required wording, and a unit that should be exempt can lose that protection.
2) SB 567 Raises the Bar for Owner Move-In and Major Remodel Terminations
SB 567 tightened two common no-fault just-cause paths: owner or family move-in and substantial remodel. It also strengthened consequences for misuse. These rules apply to notices served on or after April 1, 2024.
Owner or family move-in now requires more precision. Notices must be more specific about who is moving in and how they are related to the owner. Translation: only use this option if you truly plan to follow through.
Substantial remodel is not cosmetic work. It is meant for major permitted work that is serious enough that the tenant cannot safely remain in the unit during construction. Protect yourself with the boring basics: permits, a written scope of work, and a realistic timeline that shows why the vacancy is necessary.
3) Security Deposits Now Demand Tighter Limits and Stronger Proof
Since July 1, 2024, California generally limits residential security deposits to one month’s rent, with narrow exceptions. After move-out, landlords generally have 21 days to return the remaining deposit and provide an itemized statement explaining the deductions, plus supporting documentation when required.
Starting in 2025, AB 2801 increases the documentation burden for deposit deductions by requiring photos at defined points in the process. If you want the safest approach, run deposits like a simple evidence file:
- Move in photos (date stamped)
- Pre move out walk through notes (when required or when done)
- Post-move-out photos taken before repairs or cleaning
- Invoices and receipts are tied to each deduction line item
That is not busywork. It is how you keep a deposit dispute from becoming a claim.
4) 2026 Habitability Update: Working Stoves and Refrigerators Are Now Required
Starting January 1, 2026, AB 628 adds a working stove and a working refrigerator to California’s tenantability checklist for many leases that are entered into, amended, or extended on or after that date, with specific statutory exceptions.
Practically speaking, this changes the risk profile of appliance problems. A dead refrigerator is no longer just an inconvenience. If response times are slow or your documentation is thin, it can become part of a habitability dispute.
What Fair Oaks landlords should do now:
- Confirm which units include stoves and refrigerators before 2026 renewals
- Budget for normal replacement cycles
- If a tenant will supply their own refrigerator, document that arrangement clearly in writing at lease signing
5) Screening, Fair Housing, and Rent Reporting: Get the Process Right Every Time
California fair housing obligations apply broadly, so the standard for screening is simple but strict: objective criteria, applied consistently, documented every time. If two applicants are treated differently, your file should show a legitimate reason tied to written standards.
Application fees (AB 2493, effective January 1, 2025)
AB 2493 updates application screening fee rules and encourages landlords to adopt a more structured process. A clean workflow looks like this:
- Provide written screening criteria up front
- Process applications in a consistent order and document timestamps
- Be prepared to issue refunds or credits in situations where the law requires
Rent reporting (Civil Code 1954.07)
Many landlords must offer tenants the option to have positive rental payment information reported to a qualifying nationwide consumer reporting agency, in accordance with the required offer mechanics and timing. If a fee is charged, it is limited and tied to actual cost rules.
Treat this as a calendar item, not a memory test. Write your criteria, log your process, and schedule the rent reporting offer so it never gets skipped.
FAQ
Does the statewide rent cap apply to my Fair Oaks single-family home?
Maybe. Some single-family homes and condos may be exempt, but eligibility often depends on ownership details and required lease disclosures. If the required language is missing, you can lose the exemption.
What is the maximum security deposit in 2026?
For most covered tenancies, the deposit is generally capped at one month’s rent, with limited exceptions. The 21-day return and itemization requirement is still one of the most important compliance deadlines.
Where can I confirm the lawful eviction steps?
California Courts provides a reliable overview of the unlawful detainer process, including notices and the court steps required for an eviction.
Compliance Is the New Profit Strategy
In 2026, California is not rewarding good intentions. It is rewarding proof. The best Fair Oaks landlords can pull a file and answer, quickly and calmly: How did we calculate this rent increase? Why does this notice fit the statute? What did the unit look like before and after? How fast did we respond when something essential broke?
When your documentation is tight, disputes tend to fizzle early. Tenants feel taken seriously. Cash flow is steadier. Your rental stops feeling like a weekly fire drill.
Want that level of control without living in your inbox? JTS Property Management turns legal requirements into a repeatable operating system. Leases, notices, screening, maintenance coordination, deposits, and documentation are handled the right way, every time. If you want your Fair Oaks rental to run like a business built to win in 2026, give us a call today!
Additional Resources
How to Handle Tenant Noise Complaints and Improve Rental Harmony
Background Checks 101: What Fair Oaks Landlords Should Know Before Approving a Tenant
