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

By Brian Bean | November 24, 2025

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

What the Higher Cap Covers, and What Still Needs a Licensed Contractor

By BRIAN BEAN
Rental Home Advocate | Property Manager | Real Estate Broker

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.

Related Articles:

Full Transcript

Transcript of the video above — Brian Bean, Broker/Owner and Rental Home Advocate, Dream Big Property Management. CA DRE #01346382. Lightly edited for readability.

Making even minor repairs to your California rental home is expensive. Inflation combined with outdated state laws makes it even worse. But finally, there’s a little relief for landlords in California.

Hi, I’m Brian Bean with Dream Big Property Management here in Riverside, California. This is week three of our series on laws every Inland Empire investor must know. This week we’re talking about repair costs and a recent change that makes it easier for rental investors to hire lower-cost vendors for minor repairs.

So, we all know that 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 legally required insurance and bonding.

Now, there’s an exception in the law for unlicensed repair people, handymen and women, but the state caps the amount for repairs for which you can hire an unlicensed vendor. And that’s where the good news comes in. AB 2622, enacted this year, increased that cap from $500 to now $1,000.

Though that amount is still low in our high-inflation environment of the past few years, it’s a lot better than $500, which barely covers anything. You just need to make sure that you know the rules.

The $1,000 limit is for a total project — labor, materials, everything — not per repair. So don’t think you can game the system by making separate receipts for portions of the same job. That could get you in trouble. Also, the scope of repairs is important. Unlicensed vendors can’t do anything that would require a permit. And the penalty for breaking this law? Fines up to $5,000 and/or six months in jail on the first offense. Yeah, it’s serious.

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, installing shelves, mounting TVs, replacing faucets, replacing light fixtures, minor fence repair, caulking around sinks and tubs. Basically minor repairs or maintenance.

What type of work requires a licensed contractor? Obviously, anything that costs more than $1,000, or anything that requires a building permit regardless of cost. Examples might include plumbing beyond simple fixture replacement, electrical wiring or circuit repairs, HVAC repairs, structural changes, water heater installs, sewer line work, roof repairs. Check with your local city or county for guidelines on what requires a building permit for your property.

Whomever you hire, here’s a critical requirement. 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 workers comp insurance, because you’re on the hook if something unexpected happens. Someone gets hurt. Improper work causes damage.

The unexpected is always bad when it comes to repairs on your home anyway. And here’s the problem: unexpected happens a lot, almost enough that we should really call it expected. 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.

By the way, that’s part of being a smart investor. And it 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 a lot with our clients: the five profit centers of rental properties — cash flow, appreciation, loan paydown, tax benefits, and hedge against inflation.

Making good decisions instead of convenient decisions. That’s the long view, not the shortcut. Shortcuts are like Big Macs. They may hit the spot in the moment, but you’re going to regret it later. Not fixing little things in your rental home before they turn into big problems? That’s a Big Mac issue. Hiring an unlicensed handyman to replace your electrical panel? Big Mac. Letting an uninsured vendor get up on a ladder at your house? Double Big Mac.

I get it. This new law isn’t perfect. Even though they doubled the amount you can legally pay a handyman, $1,000 is still pretty low in today’s market. But it’s better than $500, and it should cover some of the small stuff, the minor stuff.

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, I know, but that is where you can really create jeopardy for yourself, for your property and for your renters. And there’s nothing smart about that.

If you have questions about AB 2622, or just good practices when it comes to repairs and maintenance on your rental home, call me directly at 951-314-5402. I’m happy to share. You can also find valuable information on our website, dreambigpm.com.

Can we ask you a favor? Will you please like and subscribe for this series? It helps us show up in the searches, and then we can help others just like you.

Next week, in part four of our series on new laws for rental owners, we’ll lean into AB 246. This is a new law for 2026 that could delay eviction by months for renters on Social Security. Until then, don’t be accidental about your future. Be intentional to your success.

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