Landlords allow tenant options for internet providers or pay up

Amended Calif. Civil Code §1942.8

Effective date: January 1, 2026

Bill text: AB 1414

Why this matters: Landlords may no longer mandate a particular internet service provider without opening themselves up to tenants deducting the costs of the subscription from their rent.

Opting out of internet

Moving into a new apartment, you’re stuck with a few things: the last paint job, furnished appliances, and your neighbors. But when landlords push internet service providers onto tenants without their ability to choose, landlords now face repercussions of the financial variety.

Starting January 1st, 2026, any new or renewing tenant may opt out of the internet provider offered by the landlord. A landlord requiring a specific third-party internet provider opens the door for a tenant to deduct the subscription costs from their rent. [CC §1942.8(c)]

Internet service providers offering wired internet, cellular, or satellite, cover any business providing broadband internet to:

an individual;
corporation;
government; or
other customer in California. [CC §§1942.8; 3100(k)]

While landlords may continue recommending a service provider or offering discounted rates through bulk-billing arrangements, a tenant is now able to end their subscription. [CC §1942.8(d)]

Allowing the tenant to opt out gives tenants better control over their finances and prevents a landlord reducing competition by setting aside a whole building or area for a particular provider.

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New law takes aim at “junk fees” from California landlords

Avoiding reprisal

The new law also directs protections for tenants against retaliation. Based on existing law protecting a tenant’s ability to file in good faith a complaint against bug infestation or issue of habitability, the law extends the same protections for a tenant looking to rectify paying for a provider without agreeing. [CC §§1942.8(b); 1942.5]

Retaliation covers a 180-day period, starting when the tenant exercises their right to opt out and pass the cost back to the landlord. [CC §1942.5(a)]

From that point a tenant may recover;

actual money losses incurred;
punitive damages not less than $100 and no more than $2,000 for each retaliatory act; and
reasonable attorney’s fees. [CC §§1942.5(h); 1942.5(i)]

The retaliation is not limited to, but includes:

increasing rent;
decreasing services;
reporting individuals associated with the tenant to immigration;
causing a tenant to quit involuntarily; or
threatening any of the above.

Before it escalates to that point, a landlord avoids these issues by staying informed on what they can dictate to a tenant. Now, there is equal treatment as all landlords must follow these rules. Mandates from the landlord, property manager or resident manager may result in tenants exercising their right to deduct a provider’s fee from rent, leaving the landlord out the cost. Consideration and transparency with tenants will save effort and money in the long run every time.

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