California just made your bundled internet optional

A weekly read on what changes for companies operating under real estate licenses in more than one state. Every item links to the primary source.

California made your bundled internet optional

AB 1414 is live. For any California tenancy starting or renewing on or after January 1, 2026, a tenant must be allowed to opt out of a bulk-billed internet, cellular or satellite subscription passed through as part of the tenancy. Bulk arrangements aren't banned — you just can't make participation mandatory.

The enforcement mechanism is what makes this different from a disclosure rule. If you don't offer the opt-out, or you keep billing after a tenant opts out, the tenant may deduct those charges from rent directly. No complaint, no hearing, no notice to you. Retaliation for opting out is separately prohibited.

What this means for you: if bundled connectivity is a line item in your BTR or SFR underwriting, the take rate is now a variable rather than a given. Three things to check this month — your lease template has an opt-out mechanism, your billing system can actually turn a single unit's charge off mid-tenancy, and your month-to-month tenancies were handled, because those came into scope at renewal.

Already in effect

California — security deposit returns, since January 1, 2026. AB 414 requires that a deposit paid electronically be returned electronically.

What this means for you: your move-out workflow now has a branch in it that depends on how the deposit arrived, sometimes years earlier. If your system can't tell you the original payment method, that's the gap to close. Deposits are the single most common trigger for a regulator complaint, and this is a new way to get one.

North Carolina — "principal office" redefined, since July 1, 2026. The term now means the physical address designated in Commission records by the qualifying broker of a licensed firm, or the broker-in-charge of a sole proprietorship.

What this means for you: if your NC entity's designated address is a registered agent, a coworking suite or a corporate HQ in another state, confirm it still satisfies this and that your QB is the one who designated it. Source: NCREC — rule changes

Texas — broker qualification, since January 1, 2026. The experience requirement for a broker license doubled from 360 to 720 points, and the bachelor's-degree substitution dropped from 630 to 300 education hours.

What this means for you: if your plan for Texas coverage was to promote an existing agent into the broker seat, the runway roughly doubled. Worth re-checking against your expansion timeline now rather than at filing. Source: TREC

Coming, and worth handling early

California — AB 747, the SPARE Act, 2027. Proof-of-service documentation requirements in unlawful detainer cases increase substantially.

What this means for you: this lands on your eviction vendor and your record retention, not your leases. If service records live in someone else's system, find out now what they'll be able to produce.

Not law yet — watch these

Utah. The property manager license statute is live; the administrative rule is still in committee. Trust-account association and scope remain open, and the comment window is still the moment to weigh in.

Maryland. SB 130 / HB 220 on water submetering is enacted, effective date still unconfirmed against the primary source. If you submeter or use RUBS in Maryland, treat it as imminent rather than scheduled.

FinCEN. No change. The Residential Real Estate Rule remains vacated, the Fifth Circuit appeal is pending, and reporting persons still are not required to file. Keep the intake, don't file.

What a regulator actually asks for

Every state draws a line between what licensed and unlicensed staff may do, and the lists differ enough that a single national policy will be wrong somewhere. The test regulators actually apply is more portable than the lists: did an unlicensed person exercise discretion, or represent the brokerage to a consumer on the terms of a transaction? Scheduling a showing is administrative. Answering "would they take less?" is not.

What this means for you: the risk in a scaled operation isn't your policy, it's your leasing agents' inbox. The person answering pricing questions at 9pm is the one who creates the violation, and they usually don't know the line exists. Write down what your unlicensed staff may say about price, terms and availability, per state, and put it where they actually work.

Elsewhere

• California — AB 246 gives temporary eviction protection to tenants whose Social Security benefits are delayed. The burden is on the tenant, but your eviction filings should account for it.
• North Carolina — brokers may now voluntarily cancel a license if no complaint or discipline is pending. The cancellation is permanent and not reinstatable.
• New York — appraisers renewing on or after January 1, 2026 must complete a valuation bias and fair housing CE course, seven hours the first time.
• California — AB 325 and SB 763 increase scrutiny and penalties around rent pricing practices. If you use revenue management software, this is the one to read in full.

50 State Brokerage provides designated, managing and qualifying broker coverage in 30+ states for PropTech companies, SFR and build-to-rent operators, and property management firms. Book a call.

This describes regulatory developments and is not legal advice.

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