AB 628 Deadline Jan 1, 2026: San Diego Landlords Face $1,000-$3,000 Per Unit Compliance Costs for Stove and Refrigerator Requirements

What is AB 628? Understanding California's New Rental Appliance Law

Assembly Bill 628, authored by Assemblymember Tina McKinnor (D-Inglewood) and signed into law by Governor Gavin Newsom, fundamentally changes California's habitability standards by adding kitchen appliances to the list of required amenities. According to the official legislative text, the law mandates that rental units must include "a stove that is maintained in good working order and capable of safely generating heat for cooking purposes" and "a refrigerator that is maintained in good working order and capable of safely storing food."

The law amends California Civil Code Section 1941.1, which defines the minimum habitability standards for residential rental properties. Previously, habitability requirements focused on structural elements like weatherproofing, plumbing, heating, and electrical systems. AB 628 elevates kitchen appliances to the same legal status as these fundamental housing necessities.

When Does AB 628 Take Effect?

The critical implementation detail is timing. AB 628 applies to "a lease entered into, amended, or extended on or after January 1, 2026." This means:

• New leases signed after January 1, 2026 must include working stove and refrigerator
• Lease renewals after January 1, 2026 trigger the appliance requirement
• Any lease amendments after January 1, 2026 bring the property under AB 628 compliance
• Existing leases that continue unchanged are temporarily grandfathered until renewal

For San Diego landlords, this creates a narrow window. Properties with leases expiring in January, February, or March 2026 face immediate compliance pressure. Even landlords whose current leases run through mid-2026 must plan now, as any lease extension or modification triggers the requirement.

What Appliances Must Landlords Provide?

The law specifies two required appliances with clear functional standards:

Notably, the law also creates a new landlord obligation for product recalls. According to the legislative language, landlords must "repair or replace a stove or refrigerator that is subject to recall by the manufacturer or a public entity" within 30 days of receiving recall notice. This adds ongoing compliance monitoring to the initial purchase requirement.

Exemptions: Which Properties Don't Need to Comply?

AB 628 includes limited exemptions for specific housing types:

1. Permanent supportive housing as defined by California Government Code Section 8698.4
2. Single-room occupancy (SRO) units where occupants share communal kitchen facilities
3. Residential hotel units as defined under California Health and Safety Code Section 50519
4. Dwelling units in facilities with shared kitchens, including assisted living facilities

For most San Diego rental property owners, these exemptions don't apply. Traditional single-family homes, condos, townhouses, and apartment buildings all fall under AB 628's requirements.

Compliance Costs: What San Diego Landlords Will Pay

The financial impact of AB 628 varies significantly based on property type, current appliance status, and quality standards. For San Diego landlords managing properties that historically didn't include appliances—a common practice in Southern California rental markets—the costs represent a substantial new capital expenditure.

Initial Appliance Purchase Costs

Industry analysis reveals a wide price range depending on appliance quality:

Property management experts estimate that landlords can expect combined costs anywhere from $1,000 to $3,000 per unit for basic to mid-range appliances, depending on quality and features. For a San Diego landlord managing a four-unit apartment building in City Heights without existing appliances, this translates to $4,000-$12,000 in immediate compliance costs.

Ongoing Maintenance and Replacement Costs

The AB 628 compliance burden extends far beyond initial purchase. Landlords assume full responsibility for appliance maintenance, repairs, and eventual replacement—expenses historically borne by tenants who provided their own appliances.

Expected Maintenance Expenses:

• Annual service calls: $100-$300 per appliance
• Repair costs for mechanical failures: $150-$500 per incident
• Emergency repair service (nights/weekends): $200-$600

Replacement Timeline:

• Average refrigerator lifespan: 10-15 years
• Average stove lifespan: 13-15 years
• Rental property appliances often experience heavier use and shorter lifespans
• Budget for replacement every 8-12 years in rental environments

Impact on San Diego Rental Property Owners

San Diego's rental market operates under unique pressures that make AB 628 particularly challenging for local landlords. The combination of California's statewide rent control laws (AB 1482), San Diego's local tenant protection ordinances, rising property taxes, soaring insurance costs, and now AB 628's appliance mandate creates a perfect storm for small-scale property owners.

San Diego's Rent Control Environment

California's Tenant Protection Act (AB 1482) caps annual rent increases at 5% plus the local inflation rate, not to exceed 10%. For the period from August 1, 2024, to July 31, 2025, the rent increase limit in San Diego County is 8.6%. This means landlords cannot simply raise rents to offset AB 628 compliance costs—they're locked into modest annual increases regardless of new capital expenses.

For a landlord who invested $2,500 in appliances for a rental unit with $2,800 monthly rent (San Diego's median), an 8.6% increase yields just $241 monthly—$2,892 annually. It would take approximately 10 months of rent increases just to recover the initial appliance investment, and that's assuming the full increase is attributable to appliances rather than other rising costs like property taxes, insurance, and maintenance.

Neighborhoods Most Affected by AB 628

San Diego's rental housing stock varies dramatically by neighborhood, with certain areas facing disproportionate AB 628 compliance challenges.

City Heights

City Heights experienced a significant apartment construction boom during the 1960s and 1970s, well before modern appliance-inclusive rental standards became common. Many of these older multi-family buildings lack built-in kitchens with landlord-provided appliances. The neighborhood's rental properties typically serve cost-conscious tenants, and landlords operate on slimmer profit margins than coastal areas. AB 628 creates substantial compliance costs for City Heights property owners managing buildings that were never designed with landlord-provided appliances.

North Park, Normal Heights, and University Heights

These central San Diego neighborhoods feature dense concentrations of craftsman bungalows from the early 1900s and mid-century properties from the 1960s. Many single-family rental homes in these areas have been converted from owner-occupied residences and lack the built-in appliances typical of purpose-built rental properties. Landlords in these neighborhoods often manage just one or two properties, making the $1,000-$3,000 per unit compliance cost particularly burdensome.

El Cajon, National City, and Spring Valley

These inland and southern San Diego County communities feature older rental housing stock with tight profit margins. Rental rates in these areas run lower than coastal neighborhoods—often $1,800-$2,400 for single-family homes versus $3,000-$4,500 in Pacific Beach or La Jolla. The same $2,500 appliance compliance cost represents a much larger percentage of annual rental income, making the investment harder to justify financially.

Pacific Beach, Mission Beach, and Ocean Beach

Coastal rental properties command premium rents, but many older beach bungalows and converted single-family homes lack appliances. While landlords in these areas have more financial capacity to absorb compliance costs, they also face the highest insurance premiums in San Diego County due to coastal exposure, creating cumulative financial pressures.

Exit Strategies for San Diego Landlords

Faced with AB 628's January 1 deadline and the cumulative pressures of rent control, rising insurance, increasing property taxes, and a softening rental market, many San Diego landlords are evaluating whether to continue as rental property owners. For those choosing to exit, timing and strategy matter enormously.

Option 1: Sell Before the Deadline—The Cash Buyer Solution

The fastest exit strategy is selling to a cash buyer before January 1, 2026. This approach offers several compelling advantages:

Example Calculation:
Consider a San Diego landlord owning a four-unit building in City Heights:

• Estimated retail value: $1,200,000
• Cash buyer offer (75% of retail): $900,000
• Avoided AB 628 costs (4 units × $2,500): $10,000
• Avoided annual insurance: $6,000
• Avoided annual property taxes: $14,000
• Avoided ongoing maintenance and management: $12,000+/year

While the landlord accepts $300,000 less than theoretical retail value, they avoid $42,000+ in immediate and annual costs, receive guaranteed funds in 7-14 days, and eliminate all landlord responsibilities immediately.

The Cash Sale Advantage: Why Speed Matters Now

With just days remaining before AB 628's January 1, 2026 effective date, time is the most valuable commodity for San Diego landlords. Every day that passes brings the compliance deadline closer.

Cash buyers specializing in rental property acquisitions offer the only guaranteed pre-deadline exit strategy. These buyers:

• Make offers within 24-48 hours of property evaluation
• Close in 7-14 days with no financing contingencies
• Purchase properties as-is without repair requirements
• Handle all tenant communications and coordination
• Provide guaranteed closing dates
• Eliminate all AB 628 compliance burden from sellers

For landlords who have built equity over years of ownership, accepting a cash offer at 70-85% of retail value may initially seem like a significant discount. But when factoring in avoided compliance costs, eliminated ongoing expenses, guaranteed timing, and zero hassle, cash sales often provide superior net value compared to alternatives requiring months of time, thousands in additional investment, and substantial uncertainty.

Frequently Asked Questions About AB 628 and San Diego Rental Properties