Understanding AB 1482: California’s Statewide Rent Control Law
AB 1482, the Tenant Protection Act of 2019, is the most consequential change to California landlord-tenant law in a generation. Effective January 1, 2020, it imposes statewide rent increase caps and just-cause eviction requirements on most California residential rental properties — filling in coverage for properties not already subject to stricter local rent stabilization ordinances.
Understanding AB 1482 is not optional for California landlords. Misapplying the law in either direction — treating an exempt property as covered, or treating a covered property as exempt — creates legal and financial risk.
What AB 1482 Does
AB 1482 does two things:
- Caps annual rent increases for covered properties at 5% + local CPI, with a maximum of 10%
- Requires just cause for termination of tenancy for covered tenants who have lived in the unit for more than 12 months (or 24 months if multiple adults and at least one has been there 24 months)
These are separate provisions that apply to the same set of covered properties, but they operate independently. A landlord may lawfully increase rent to the allowed maximum and separately may terminate a tenancy only for just-cause reasons.
Which Properties Are Covered
Covered Properties
AB 1482 covers most residential rental housing in California that is not exempt under one of the specific exemption categories. The general rule is that a property is covered if:
- It is residential rental housing
- It does not fall into an exempt category
- It is not subject to a local rent stabilization ordinance that is more restrictive than AB 1482 (in that case, the local ordinance governs, and AB 1482 just-cause provisions still apply)
Exempt Properties
Single-family homes and condominiums: Exempt if (and only if) the landlord provides the required exemption notice to the tenant. Civil Code Section 1946.2(e) specifies the exact language of this notice. The notice must be included in the lease or delivered separately. Without it, a single-family home that would otherwise be exempt is treated as covered.
The exemption notice requirement is one of the most commonly missed compliance elements for small landlords. A landlord who has owned a single-family rental for years and is unaware of AB 1482 may have a covered property without knowing it — meaning their rent increases may have exceeded the cap, creating potential liability.
New construction: Properties built within the last 15 years (a rolling window) are exempt. As of 2026, this means properties with certificates of occupancy issued after 2011.
Owner-occupied properties with two or fewer units: A duplex where the owner occupies one unit is exempt.
Affordable housing with deed restrictions: Properties with affordability covenants that already restrict rents are exempt (the deed restriction governs).
Dormitories: Properties where tenants are students and the property is owned by a university or college.
Hotels, motels, short-term rentals: Transient occupancy is not covered.
The Rent Increase Cap: How It Works
For covered properties, the maximum annual rent increase is the lesser of:
- 5% + local CPI, or
- 10%
Local CPI refers to the Consumer Price Index for the metropolitan area where the property is located, measured in April of the prior year. CPI figures vary by county and metro area. Landlords should obtain the applicable CPI from the California Department of Industrial Relations (DIR) before issuing a rent increase.
Example for Sacramento, 2026: If the Sacramento-area CPI increase is 3.5%, the maximum permitted increase is 5% + 3.5% = 8.5%. The 10% cap does not bind in this case. A landlord with a tenant paying $1,500/month could increase to no more than $1,627.50 ($1,500 × 1.085).
Rules for Calculating the Base Rent
The base for calculating an increase is the lowest rent charged in the previous 12 months, not the current rent. If a landlord reduced rent temporarily (e.g., as a COVID accommodation), the base is the lowest amount charged during the prior 12 months, not the pre-reduction rent.
Passthrough Increases
AB 1482 does not allow automatic passthroughs of operating costs (unlike some local ordinances). The 5% + CPI cap is the ceiling regardless of how much operating costs have increased. Landlords whose operating costs exceed permitted increases may need to absorb the difference or, in some cases, use local rent adjustment petition processes if applicable.
Notice Requirements
Increases of 10% or less: 30 days written notice (or 30 days for month-to-month tenancies) Increases of more than 10% (not permitted under AB 1482 but applies to exempt properties): 90 days written notice
Notice must be written. Verbal notice is not valid. For month-to-month tenants, the notice period runs from the date of service.
Just-Cause Eviction
For covered tenants who have been in continuous occupancy for the threshold period (12 months, or 24 months for multi-adult households), termination of tenancy is only permissible for stated just-cause reasons.
At-Fault Just Causes (Tenant Has Breached or Violated)
At-fault terminations do not require relocation assistance:
- Failure to pay rent: After a valid 3-Day Notice to Pay or Quit has been served and rent has not been paid
- Breach of a material lease term: After written notice to cure, if the breach is not cured within the notice period
- Material damage: Tenant has caused substantial damage to the property beyond normal wear and tear
- Nuisance: Tenant is creating a nuisance affecting other tenants or neighbors
- Illegal activity: Criminal activity by tenant on or near the property
- Subletting in violation of the lease: Tenant has sublet without authorization
- Refusal to execute a new lease: At end of lease term, landlord offers a new lease with materially similar terms and tenant refuses
- Failure to vacate after lease end: If the original lease is not month-to-month and tenant holds over without authorization
No-Fault Just Causes (Tenant Has Not Breached)
No-fault terminations require one month’s rent as relocation assistance, paid at or before service of the termination notice:
Owner move-in: The owner or a qualified family member (spouse, child, parent, grandparent, grandchild, brother, sister) intends to occupy the unit as a primary residence. The owner must actually occupy the unit within 90 days and must maintain occupancy for at least 12 months.
Withdrawal from rental market: The owner is taking the unit permanently out of the rental market. Under California’s Ellis Act (Government Code § 7060), this process has specific procedural requirements.
Substantial remodel: Construction work requires the unit to be vacant for at least 30 days, and the permits have been obtained. The contractor must already hold the relevant permits — this is not a basis for eviction based on anticipated future construction.
Government order: A government order to vacate due to habitability or safety conditions.
Relocation assistance equal to one month’s rent must be provided to the tenant. This can be paid by waiving the final month’s rent or by direct payment. Documentation is important.
How AB 1482 Interacts with Local Rent Ordinances
Many California cities have rent stabilization ordinances that predate and are more restrictive than AB 1482. The relationship is:
For rent increases: The more restrictive standard applies. Sacramento’s TPO caps at 3% or CPI, not 5% + CPI. Oakland’s RAP is typically 2–4%. For covered properties in these cities, the local ordinance governs rent increases, not AB 1482.
For just-cause eviction: AB 1482 just-cause provisions apply to properties covered by local ordinances that don’t have their own just-cause protections, and function alongside local just-cause protections where they exist. Some cities (Oakland) have just-cause requirements that differ from AB 1482’s.
If you own property in a city with a local rent ordinance, you need to understand both the local ordinance and AB 1482. The local ordinance governs rent increases; AB 1482 may provide additional just-cause protections for units not otherwise covered by local ordinance.
Common AB 1482 Compliance Errors
1. Failing to serve the exemption notice for single-family homes and condos: The most common error. If you own a single-family rental or condo that is exempt from AB 1482, you must include the exemption notice (exact statutory language) in every lease or rental agreement. Failure to do so means the exemption does not apply.
2. Using the wrong CPI: The correct CPI is the applicable local CPI for the preceding April, not national CPI and not current-year CPI. Using the wrong figure can result in an increase that appears compliant but is not.
3. Issuing increases above the cap: Whether through misunderstanding the cap formula, using an incorrect base rent, or being unaware of coverage, some landlords issue increases above the AB 1482 cap. Tenants can challenge these increases and may have civil remedies.
4. Using incorrect just-cause language in notices: Notices for covered tenants must state the just-cause reason. A standard 30-day termination notice without a just-cause statement is invalid for a covered tenant.
5. Not paying relocation assistance for no-fault terminations: Relocation assistance is not optional for no-fault terminations of covered tenants. Failure to pay can invalidate the termination.
6. Owner move-in fraud: Claiming owner move-in to terminate a tenancy without actually intending to occupy. This is both a civil violation and potentially criminal in some jurisdictions.
Resources
- California Civil Code Section 1946.2 (just-cause eviction): leginfo.legislature.ca.gov
- California Civil Code Section 1947.12 (rent increase cap): leginfo.legislature.ca.gov
- California Department of Industrial Relations — CPI data: dir.ca.gov
- LeaseBase Housing Foundation AB 1482 Compliance Workshop
This guide reflects California law as of September 2026. Laws are amended regularly. Verify current statute and consult a licensed attorney for advice specific to your situation.