Three new California rental-housing laws take effect in 2027: SB 1365 addresses emergency rent restrictions, SB 1296 adds pet-policy disclosures, and SB 868 creates utility exemptions for qualifying portable solar devices. They address different parts of owning and managing rental housing, and the requirements don't all begin on the same date.

For West LA apartment owners, the immediate questions are which rules apply to their property and what will need to change in their leasing or management practices. Here's what the final laws say.

SB 1365: Emergency rent restrictions will cover longer leases

Beginning January 1, 2027, SB 1365 removes the exclusion for rental housing with an initial lease term longer than one year from California's emergency price-gouging law. A longer lease will no longer place a rental outside these protections.[1]

The underlying restriction isn't new. During an applicable emergency protection period, the law generally prohibits an increase of more than 10% over the legally defined rental-price baseline. It covers rent advertised, offered or charged, including rent offered to a prospective tenant. The rental protections generally last 30 days after a qualifying emergency declaration and can be extended.[1]

That 10% threshold is not an annual rent allowance. Local rent control and other applicable restrictions still apply. The Los Angeles RSO and Santa Monica rent-control system have separate requirements. An apartment becoming vacant doesn't, by itself, remove the emergency restriction. Owners considering a new asking rent during an emergency need to check the applicable order and rental-price baseline, not simply the rent advertised for a comparable apartment. Our guide to reading an apartment rent roll explains the distinction between current rent and potential future rent.

SB 1365 also narrows the repair-cost defense for increases above the emergency limit. The qualifying costs must be beyond normal maintenance and incurred within the year before the declaration. Additional conditions concern whether the property was rented, offered for rent, or intended for rental before the emergency. Spending money on renovations does not automatically permit an increase above the limit.[1]

A separate defense remains for an increase the tenant contractually agreed to before the emergency declaration. Whether a particular increase qualifies is a question for a landlord-tenant attorney. The change owners should understand now is that leases longer than one year will be covered too.[1]

SB 1296: A no-pets policy still needs to be disclosed

The pet-policy requirements become operative on April 1, 2027. They apply to written policies that prohibit pets as well as those that allow them. SB 1296 does not require an owner to accept pets, and it leaves existing rights and obligations concerning service and assistance animals unchanged.[2]

The established policy must accompany the rental application, which must include space for the applicant to acknowledge receiving it. Electronic access is also required through the property's website and applicable digital advertising and rental-search information, subject to qualifications for third-party platforms. Owners are not required to create a website.[2]

The law provides an application-fee refund when a failure to disclose the policy before charging the fee causes the applicant to become ineligible or decline to proceed. The applicant may request the refund in writing. The owner or agent then has seven business days after receiving that notice to return the fee. A timely refund ends further obligations to that applicant under this section, not under every other law.[2]

A pet prohibition therefore isn't a way around the disclosure requirement. Applicants need access to the property's policy before paying to apply, including when the answer is that pets aren't allowed.

SB 868: Qualifying portable solar devices get utility exemptions

Beginning January 1, 2027, SB 868 exempts qualifying portable solar devices from specified utility interconnection requirements. The exemption lasts until January 1, 2030. The devices are limited to a combined maximum AC output of 1,200 watts per dwelling and must meet the law's electrical-code, certification and outage-isolation requirements.[3]

The final law requires a certified feature that prevents electricity from feeding back to the grid during an outage. Utilities may still require a simple online notification identifying the device and its location. Equipment that doesn't qualify does not receive the exemption.[3]

The bill concerns utility interconnection. It does not itself resolve every question about a tenant mounting equipment on a balcony, making alterations or obtaining the owner's consent. Those questions still require review under the lease and other applicable law. An electrician can assess the proposed equipment and the building's electrical conditions; an attorney can address installation and consent requirements.

Owners can use the time before these provisions begin to review rental applications and pet-policy disclosures with their property manager. For emergency rent questions or a proposed solar installation, get advice on the actual circumstances rather than treating a general summary as permission to proceed.

Related reading

For the separate local rules governing annual rent increases, see our coverage of Los Angeles RSO rent increases and Santa Monica's 2026 rent adjustment.

If you're also considering selling your apartment building, I can help you understand its current value. Request a property valuation.

This is for general informational purposes only. Consult with your CPA, tax advisor, and/or attorney for guidance specific to your situation.

Sources

[1] California SB 1365, Chapter 1028, Statutes of 2026, amending Penal Code section 396. Approved September 30, 2026; effective January 1, 2027.

[2] California SB 1296, Chapter 1025, Statutes of 2026, adding Civil Code section 1942.7.5. Approved September 30, 2026; pet-policy provisions operative April 1, 2027.

[3] California SB 868, Chapter 985, Statutes of 2026, adding Public Utilities Code sections 8530 through 8532. Approved September 30, 2026; effective January 1, 2027. Section 8531's interconnection exemption sunsets January 1, 2030.