California’s $1,000 Handyman Rule: What Inland Empire Landlords Need to Know About AB 2622

By Brian Bean | November 24, 2025

AB 2622: California’s $1,000 Handyman Rule Explained

California’s $1,000 Handyman Rule: What Inland Empire Landlords Need to Know About AB 2622

Part 3 of 6: Laws Every Inland Empire Investor Must Know series

By Brian Bean

In a rental home, things break from time to time, and we all need to hire someone to make repairs.

But laws in California make it harder to hire a more affordable handyman for minor things because of the cap on repair costs.

Until this year. … California has now upped that limit, making it easier for landlords to knock out easy repairs without breaking their budgets

We all know the cost of repairs and maintenance has gone through the roof in the past few years. What you may not be aware of is that California has a law in place that requires that repairs be done by contractors who are licensed by the state. The goal is to make sure that things are being done correctly, to code, with permits when necessary, by trained people who have the legally required insurance and bonding.

An exception in the law allows for unlicensed repair people, with a limitation on how much you are legally allowed to pay for repairs by an unlicensed vendor. And that’s where the good news comes in…

AB 2622, enacted this year, increased that cap to now $1,000, double the old amount of $500. That amount is still low in our high-inflation environment. But it’s better than $500, which will barely cover anything.

The details

  • Unlicensed vendors can be hired for repairs, but only up to $1,000 per project.
  • Projects can include multiple individual tasks, but the $1,000 cap is for the total project, and it must be for all costs — materials, labor, etc.
  • Scope of repairs: Unlicensed vendors can’t do anything that would require a building permit.
  • The penalty for breaking the law: Fines up to $5,000 and/or 6 months in jail on the first offense.

So what can you hire a handyman to do?

By law, here are some examples of allowable work, as long as the project costs less than $1,000:

  • Painting or touch-up work
  • Patching drywall holes
  • Installing shelves
  • Mounting TVs
  • Replacing faucets
  • Swapping a light fixture
  • Minor fence repairs
  • Caulking around sinks and tubs
  • Pressure washing

Basically, most minor repairs or maintenance.

What work requires a licensed contractor?

  • Anything that costs more than $1,000
  • Anything that requires a building permit, regardless of cost
  • Plumbing work beyond simple fixture replacement
  • Electrical wiring or circuit repairs
  • HVAC repairs or replacements
  • Any structural changes
  • Water heater installation
  • Sewer line work
  • Roof repairs
  • Major remodeling

Check with your local city or county for guidelines on what requires a building permit for your property.

Insurance

Whomever you hire, make sure your contractor or handyman has insurance. Even a handyman should have liability insurance in case they get hurt on your property. And if they have a helper with them, they must have worker’s comp insurance.

You can request a certification of insurance coverage from the vendor, to be sure, and keep a copy in your files.

You’re on the hook if something unexpected happens. Someone gets hurt, Improper works causes damage? The “unexpected” is always bad when it comes to repairs on your home. And the unexpected happens a lot. So make sure you’re protected, because any savings you might have gotten from hiring the wrong person will quickly be wiped out by the extra costs, damages, and legal issues.

Be a Smart Investor

This is just part of the deal. Being a smart investor goes deeper than simply increasing revenue and decreasing expenses. It’s about making good decisions that pay off, even if those benefits take a while to come back to you.

We talk about this with our clients all the time – The 5 Profit Centers of Rental Properties:

  1. Cash flow
  2. Appreciation
  3. Loan paydown
  4. Tax benefits
  5. Hedge against inflation

It all boils down to making good decisions, not just convenient decisions. Taking the long view, not the shortcut.

This new law isn’t perfect. Even though they doubled the amount you can legally pay a handyman, $1,000 is still pretty low by today’s costs. But It’s better than $500.

The real issue here is making sure that you’re not hiring an unqualified person to do what really should be done by a contractor – permitted stuff, health-and-safety stuff.

It can be tempting to hire the cheaper guy to repipe your house. But that is where you can put yourself, your property and your renters at risk. And there’s nothing smart or convenient about that.

Have questions about AB 2622 or good practices when it comes to repairs and maintenance on your rental home?

Call me directly at 951-314-5402, or check out our information at DreamBigPM.com.

Coming Next Week

In Part 4 of our series on new laws for rental owners, we’ll cover AB 246 – a new law for 2026 that could delay eviction by months for renters receiving Social Security benefits.

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