By: Rush Blakely
In November, we informed our clients about California Governor Newsom’s signing of AB1414 into law. Beginning January 1, 2026, California renters have the right to opt out of bulk internet plans, thus dramatically changing the landscape for owner-sponsored Internet and managed Wi-Fi agreements statewide.
As announced in our newsletter, RealtyCom is working closely with Davis Craig, PLLC, Hubacher, Ames & Taylor, PLLC and our clients to include protections in new agreements that allow future flexibility should bulk programs be negatively impacted by regulation. Most importantly, RealtyCom has been in discussions with many of the service providers on how they will assist owners to ensure wireless and wired connectivity is turned off for opted-out units.
As one can imagine, this is a big undertaking between the operations and finance teams, attorneys, and different state laws to consider. Unfortunately, most providers are still working to establish internal protocols around reporting of opted out units, timing for disconnection, and any physical requirements to turn off those units. Some have agreed, in principle, to discount bulk billing fees (subject to a cap). While others have contemplated a mandatory renegotiation or an optional conversion into a traditional retail environment where residents secure their own service, after a certain threshold is met.
Ensuring wireless and wired access is removed is the key to preventing opt-outs from cascading through the property.
Turning off wired ports in the unit presents issues for some providers. Some can turn off these ports remotely – others may require a technician visit. Turning off access to the resident SSID is generally easy through the portal that property management can access. Modem based bulk where the resident is responsible for the modem may require a call into the provider and return of the equipment.
It is RealtyCom’s opinion the regulatory environment will continue to shift at the state level, and protections in new agreements in all states will be important to provide additional owner flexibility. We continue to advocate for reasonable pass-through fees which should limit the number of opt-outs, but also offset the program cost for this amenity and the owner’s investment in the network. If you would like advice on pricing, financial modeling at different opt-out levels, or to discuss further how AB1414 will impact your communities please contact us at info@realtycompartners.com.
