California Governor Gavin Newsom recently enacted three laws aimed at reforming rental practices in the state that will become effective in 2026. These new regulations focus primarily on increasing transparency in rental listings, which now must accurately display all associated costs that tenants are expected to pay. By mandating that landlords reveal complete details about rental fees upfront, the laws aim to protect tenants from hidden charges and unexpected expenses.

The most significant piece of legislation, AB 747, will specifically require that rental advertisements disclose all mandatory fees and associated costs from the outset. This means that prospective tenants will be able to see the true cost of renting a property without being misled by lower base prices that do not account for additional financial obligations. The 2026 implementation date provides time for landlords to adjust their advertising practices and ensure compliance with the new regulations.

These legal reforms come as part of a broader effort in California to address the affordability crisis in housing and to safeguard tenant rights. By enhancing transparency in rental agreements, the laws also aim to create a more equitable housing market and ensure that tenants have a clearer understanding of what is required financially before committing to a lease. As California continues to grapple with housing shortages and rising costs, these regulations mark a significant step towards more responsible and fair rental practices in the state.