January 2026 Blog

Pacific Grove Property Management, Inc.
Happy New Year! As we kick off 2026, we want to (1) help you start the year cleanly from a tax and reporting standpoint, (2) recap a few key California rental-housing law updates we covered in last month’s blog, and (3) invite your feedback so we can continue improving how we serve you.

2025 1099 Reporting: What We Need From You (and When)

What we issue (typical scenarios)

While every owner’s situation is different, here is the general framework:

  • 1099-NEC (vendors/contractors): Issued to qualifying independent contractors paid $600+ during calendar year 2025 (subject to IRS rules). IRS+1
  • 1099-MISC (rents paid to owners, where applicable): The IRS instructions specifically note that when rent is paid to a real estate agent or property manager, the agent/manager generally reports the rent paid over to the property owner on Form 1099-MISC. IRS

Owner action items (please complete early in January)

To avoid corrections and delays, we ask all owners to do the following:

  1. Confirm your legal taxpayer name and tax classification (individual / LLC / partnership / corporation, etc.).
  2. Confirm your mailing address for tax forms (if different than your property address).
  3. If anything has changed in 2025 (entity name, EIN/SSN, mailing address, etc.), please provide an updated W-9 as soon as possible.

When 1099s go out and when they’re due

  • Recipient copies: The IRS instructions reflect that payee statements are generally due to recipients by January 31. IRS+1
  • Filing deadlines: IRS instructions also reflect filing deadlines of February 28 (paper) or March 31 (electronic) for many information returns. IRS

Practical note: If changes come in after forms are produced/issued, corrections may be required, which can create avoidable administrative work for everyone. Early updates help significantly.

Year-End Tax Reporting From AppFolio: Cash Flow Reports

When we provide owner tax reports

Our goal is to have year-end cash flow reporting for the prior calendar year (2025) finalized and available in AppFolio in January, after December activity is fully reconciled.

How to run your own Cash Flow report in AppFolio (Owner Portal)

If you want to pull it on demand, you can generally run it directly in the Owner Portal:

  1. Log in to AppFolio Owner Portal
  2. Navigate to Reports
  3. Select Cash Flow (or similarly titled year-end cash flow statement)
  4. Set the date range to 01/01/2025–12/31/2025
  5. Choose Cash Basis (most owners/tax preparers prefer cash basis for rental reporting, but confirm with your CPA)
  6. Export/download as PDF (and Excel if needed)

If you do not see the report option in your portal, contact us and we’ll help you locate the correct report or confirm your portal permissions.

“January Rent Collected in December”: Important Tax Timing Reminder

This comes up every year, so we want to flag it clearly:

  • If a tenant pays January rent early and it is received in December, it will typically appear in your December activity and therefore on a cash-basis year-end report for the prior year.
  • If your tax preparer prefers a different treatment (less common, but possible depending on your accounting method and circumstances), please follow your CPA’s direction.

If you ever want us to help you trace a specific payment (received date vs. posting date vs. owner disbursement), we can do that quickly.

Brief Recap: Key 2026 California Rental-Housing Law Updates (from last month’s blog)

Below is a short recap of the laws we highlighted previously—if you want the deeper dive, please refer back to last month’s post.

  • AB 628 (Habitability—stove and refrigerator): For new, amended, or renewed residential leases beginning January 1, 2026, landlords must generally provide a working stove and refrigerator (with certain exemptions). California Apartment Association+1
  • SB 610 (Disaster-related duties and rent rules): Establishes expanded landlord duties following declared disasters, including remediation/hazard mitigation concepts and related rent/return rights frameworks. Digital Democracy | CalMatters+2LAist+2
  • AB 1414 (Bulk internet subscription opt-out): For certain residential tenancies on or after January 1, 2026, tenants must be allowed to opt out of paying for certain third-party internet subscriptions tied to the tenancy (with specified remedies if violated). Digital Democracy | CalMatters+1
  • AB 246 (Social Security Tenant Protection Act of 2025): Creates a temporary framework allowing a tenant to assert a defined “Social Security hardship” as an affirmative defense in certain unlawful detainer proceedings, with specific requirements and limitations. Digital Democracy | CalMatters

Commitment to Continued Education (and Why It Matters to You)

Our broker, Rhonda Navarro, has always placed a strong emphasis on continued education—through conferences, seminars, webinars, and ongoing collaboration with other reputable companies and professionals in our community. The regulatory landscape changes quickly, and we view training and professional development as a core part of protecting our clients’ assets and keeping operations compliant.

Please Take a Moment: Visit Our “About” Page

If you have not seen it recently, we encourage you to explore our “About” page on our company website. It’s the best snapshot of our values, operating standards, and the people behind the work.

We Would Value Your Feedback

We want to continually improve. If you have thoughts on any of the following, we would genuinely appreciate hearing from you:

  • Communication cadence and preferred channels (email/text/calls)
  • Reporting (what you want to see more/less of)
  • Maintenance workflows and approval thresholds
  • Strategic planning: rent positioning, renewals, capital planning, and budgeting
  • Anything we could do to better support your goals as a housing provider

Thank You

Thank you for trusting us with your investment. We appreciate the opportunity to serve you and look forward to a successful 2026 together.

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