What California’s 2026 Parking Law Means for Landlords and Tenants

Here’s what California’s new parking rules mean for rentals in 2026 (and how EGL residents will be affected)

If you’ve seen headlines about a “new parking law” for renters coming in 2026, you’re not imagining things—there are real changes on the way. Two statewide moves matter most for landlords and tenants in Los Angeles:

1. unbundling residential parking from rent in many newer, larger buildings (already rolling out), and
2. new “junk fee” transparency standards that treat parking as an optional housing service that must be clearly advertised and opt-in, starting in 2026.

Below, we break down what will change, who it affects, and how EGL Properties is preparing to keep things simple and compliant.

What’s changing, exactly?

Unbundled parking for qualifying new buildings (already in effect)
Assembly Bill 1317 requires many new multifamily buildings (those with 16+ units, in specified counties like Los Angeles, and with certificates of occupancy issued on or after January 1, 2025) to “unbundle” parking—meaning parking is offered and priced separately from the apartment itself. Tenants get a right of first refusal for on-site residential spaces, but parking is no longer automatically included in the base rent. Failure to pay a separately leased parking fee can’t be used to evict a tenant for nonpayment of rent; instead, the owner may revoke the parking space after a grace period. Some properties (e.g., units with an individual garage that’s part of the unit, or 100% affordable projects) are exempt.

Transparent, opt-in “optional services” (including parking) starting in 2026
A 2025 bill focused on eliminating rental “junk fees” (AB 1248, as amended) goes a step further on transparency. Beginning April 1, 2026, landlords who advertise rentals must display the full rental price and clearly describe all available optional housing services—specifically calling out items like a parking space, storage, or laundry—along with the separate fees for each. To qualify as optional, services like parking must be truly opt-in and cancelable by the tenant (typically with 30 days’ notice) and not required as a condition of tenancy. The bill also sets rules for how payments are applied and restricts certain fee practices. (Important date note: while many references say “2026,” the operative advertising requirement in the current bill draft begins April 1, 2026.)

What this means for renters

• More choice and clarity: In qualifying buildings, you can decide whether a parking space is worth it for your budget and lifestyle. If you don’t drive or you share a car, you don’t have to pay for a spot you won’t use. Going into 2026, you’ll also see parking presented clearly as an optional add-on whenever you’re shopping for an apartment—no surprises later.

• Easier apples-to-apples comparisons: Because parking fees must be listed separately in advertising (starting April 1, 2026), it will be simpler to compare the total cost of similar units across different communities without having to ask for fine print.

• Separate agreements and separate obligations: If you choose a space, it may be documented through an addendum or separate parking agreement. If a parking payment is missed, the remedy is typically losing the space—not losing your home—because parking charges are not “rent” for eviction purposes under the unbundling law. (Standard late-fee and payment-application rules still apply to rent itself.)

What this means for owners

• Pricing decoupled from rent: In qualifying new buildings, owners must keep parking priced and billed separately for the life of the property. That can improve transparency, reduce disputes, and reveal true demand for spaces—some communities discover they’ve overbuilt parking once residents can opt out. But it also requires operational discipline (separate ledgers, agreements, and notices).

• Advertising and disclosure updates in 2026: Listings and ILS (internet listing service) feeds will need to display the base rent plus a clear menu of optional services with fees (parking, storage, etc.) starting April 1, 2026. Owners who advertise must align websites, brochures, and chatbots so the same information is shown consistently to prospects.

• Compliance guardrails: The unbundling statute gives tenants a right of first refusal on residential spaces and prevents using nonpayment of a parking fee as the basis for an eviction—while allowing an owner to revoke the space if fees go unpaid after a defined period (e.g., 45 days in the bill analysis). Property teams should use standardized timelines, notices, and documentation.

How EGL Properties is preparing

1. Clear, consistent listings
   We’re updating our advertising templates so every listing shows the base rent alongside a simple, plain-English “Add-Ons” box for optional services such as parking, storage, and pet programs (where applicable), with fees stated up front. This aligns with the 2026 advertising requirement and helps prospects compare total cost quickly.
2. Separate parking agreements + resident choice
   Where unbundling applies, parking will be offered via a short addendum or separate agreement, with your right to accept or decline the space at move-in—and to cancel later with notice—spelled out clearly. We’ll also keep a waitlist when demand exceeds supply to ensure fairness.
3. Seamless billing + reminders
   Our resident portals will show parking as a separate line item. If a parking payment is missed, our system triggers friendly reminders and, if needed, follows the statute’s timeline before a space is revoked—without mixing parking fees into rent ledger flows.
4. Education for residents and prospects
   Leasing teams are trained to explain how unbundled parking works, who’s eligible, and what it costs—before you apply. Our website FAQs will be updated ahead of the 2026 deadline so the same answers are available 24/7.

Common questions we’re already hearing

• Does this apply to my existing lease?
It depends on your building and when it received its certificate of occupancy. AB 1317 applies to qualifying properties with certificates issued on or after Jan 1, 2025; many existing buildings are not covered. Regardless, the 2026 advertising and “optional service” clarity rules affect how future vacancies are marketed and how optional services like parking are presented to new renters.

• Can the landlord raise my parking price anytime?
Parking is a separate service in qualifying buildings. Pricing and notice rules should be defined in your parking agreement and must comply with local and state law. We aim for predictable, clearly disclosed pricing with reasonable notice for any changes.

• What if I stop needing a space?
Under the 2026 framework, optional services must be cancelable by the tenant with notice. Check your agreement for the exact notice period (commonly 30 days). We’ll confirm end dates in writing and remove the charge once the notice period ends.

The bottom line

In Los Angeles and across California, 2026 is the year rental parking gets more transparent. In many newer, larger buildings, parking has already been separated from rent; next year, advertising rules and “optional services” standards will make pricing and choices even clearer. EGL Properties welcomes these changes—our goal is to give residents straightforward options, no surprises, and paperwork that matches real life.

If you have questions about how these rules apply to your specific building or lease, reach out to your EGL manager—we’re happy to walk you through it.