Some landlords, especially in multi-unit buildings, sign "bulk billing" deals with an internet provider and charge every tenant for the service. Since January 1, 2026, California's AB 1414 lets tenants say no.
What AB 1414 Requires
For tenancies that start or renew on or after January 1, 2026, a landlord must allow the tenant to opt out of paying for any subscription from a third-party internet service provider that is offered in connection with the tenancy. That covers:
- Wired internet
- Cellular service
- Satellite service
The most common example is a bulk-billing arrangement, where the landlord contracts with one provider for the whole building and passes the cost to every unit.
What AB 1414 Does Not Do
AB 1414 does not ban bulk billing. You can still negotiate a building-wide deal and offer it to tenants. Many tenants will gladly take a discounted rate. The change is that each tenant gets to choose.
The Tenant's Remedy: Deducting It From Rent
If a landlord doesn't let a tenant opt out, the tenant may deduct the cost of the subscription from the rent. The law also prohibits retaliating against a tenant for opting out.
That means a forced internet charge can turn into a rent shortfall dispute, and any notice or rent increase that follows could be scrutinized as retaliation.
Does This Apply to Small Landlords?
AB 1414 isn't limited to large buildings. If you rent a duplex or single-family home and your lease requires the tenant to pay you for an internet plan you arranged, the opt-out applies. If internet is simply a separately billed service the tenant signs up for directly, AB 1414 generally isn't an issue.
How to Update Your Lease
- List any internet, cable, or satellite service as an optional add-on, priced separately from rent
- Include a clear opt-out statement and how the tenant can exercise it
- Don't fold the service cost into base rent as a mandatory charge
- If a tenant opts out, stop billing them for it and note the date in your records
- Review existing month-to-month tenancies, which are covered on renewal
Bottom Line for Landlords
- Since January 1, 2026, California tenants can opt out of paying for landlord-arranged internet, cellular, or satellite service
- Bulk billing is still legal, but it has to be optional for each tenant
- If you don't allow the opt-out, the tenant can deduct the cost from rent
- Retaliating against a tenant for opting out is prohibited
FAQ
Can a California landlord require tenants to pay for internet?
No, not for a third-party subscription offered in connection with the tenancy. Since January 1, 2026, AB 1414 lets tenants opt out of paying for it.
Is bulk billing for internet illegal in California?
No. Landlords can still offer bulk-billed internet, but tenants must be allowed to opt out.
What can a tenant do if the landlord won't let them opt out?
The tenant can deduct the cost of the internet subscription from the rent, and the landlord can't retaliate.
Track every charge separately
LeaseConnectPro's ledger lets you record rent and optional charges as separate line items, so it's clear what each tenant actually signed up for.
Download Free →This article is for informational purposes only and does not constitute legal advice. Consult a licensed California attorney for guidance specific to your property.