Written pet policies, digital disclosures, and a refund trigger landlords need to know
California rental property owners just picked up a new compliance obligation - and it kicks in April 1, 2027.
Governor Gavin Newsom signed SB 1296 on September 30, 2026, adding Section 1942.7.5 to the California Civil Code. The bill, authored by Senator Maria Elena Durazo, requires every residential landlord and their agent to maintain a written pet policy or pet addendum and disclose it before collecting application fees.
That matters for mortgage professionals because compliance costs and operational requirements feed directly into underwriting assumptions for investor-owned rental properties. A new disclosure obligation with a built-in financial penalty changes the risk picture, even modestly.
The law requires landlords to post the pet policy on the property's website, include it in digital advertisements they control, and provide it to residential rental search engines. Third-party platforms are covered only "to the extent that the third party permits the inclusion of a hyperlink or other electronic access." The landlord is not liable for errors when a third party scrapes or republishes the policy without written permission.
Every rental application must include a written copy of the pet policy, and the application form must have a space for the prospective tenant to acknowledge receipt.
The policy itself must contain "a clear, plain-language description of the rights, responsibilities, and requirements for tenant pet owners at the property, including any other material rules, conditions, or restrictions applicable to keeping a pet." Even properties that ban pets must put that prohibition in writing. Properties with no restrictions must state that there are none.
The financial hook: if a landlord charges an application fee but fails to disclose the pet policy first, and the applicant becomes ineligible or walks away as a result, the applicant can request a written refund. The landlord has seven business days to return the fee.
The law does offer some room. Substantial compliance counts - providing "the material terms" of the policy satisfies the requirement. A "nonmaterial error or omission that is corrected upon notice" is not a violation. And landlords can amend pet policies for prospective tenants only.
A few things SB 1296 does not do: it does not require landlords to allow pets, create a website, or advertise through any specific platform. Service animals, support animals, and assistance animals remain governed by existing state and federal law. A tenant's refusal to sign a pet addendum cannot be the sole basis for an eviction action.
For lenders and loan officers working with investor-borrowers in California, the practical signal is straightforward - rental property management just got a little more complex, and borrowers carrying multi-unit portfolios will need their pet policy workflows buttoned up before April.
