California's rent control landscape changed dramatically with the Tenant Protection Act of 2019 (AB 1482), creating statewide rent caps that apply to most residential properties. Understanding these rules—plus any local ordinances that may apply—is essential for California landlords.
The Tenant Protection Act (AB 1482)
AB 1482, effective January 1, 2020 and extended through 2030, establishes statewide rent control for most California residential properties.
Rent Increase Limits
For covered properties, annual rent increases are capped at 5% plus local Consumer Price Index (CPI), with a maximum of 10% regardless of CPI. This limit applies to increases over any 12-month period—landlords cannot circumvent the cap through multiple smaller increases.
Example: If local CPI is 4%, maximum increase is 9% (5% + 4%). If local CPI is 8%, maximum increase is still 10% (the cap).
Just Cause Eviction
AB 1482 also requires "just cause" for evictions after 12 months of tenancy. Landlords cannot simply choose not to renew leases without one of the specified at-fault or no-fault reasons. No-fault evictions require payment of one month's rent as relocation assistance.
Exemptions from AB 1482
Several property types are exempt from AB 1482's provisions:
- Single-family homes and condos where the owner is not a corporation or REIT, and proper written notice of exemption is provided to tenants
- New construction (properties with certificates of occupancy issued in the last 15 years)
- Owner-occupied duplexes where the owner lives in one unit
- Affordable housing with existing deed restrictions
- Dorms and housing owned by educational institutions or nonprofits
Critical Requirement: Single-family home exemption requires written notice to tenants using specific statutory language. Failure to provide proper notice waives the exemption—your property becomes covered by AB 1482.