California rent control law is governed primarily by the Tenant Protection Act of 2019 (AB 1482), codified at Civil Code §§ 1946.2 and 1947.12. AB 1482 imposes statewide rent caps and just cause eviction requirements on most residential rental properties. Many California cities — including Los Angeles, Santa Monica, and West Hollywood — have their own local rent stabilization ordinances that may be more restrictive than state law.
Who Does AB 1482 Apply To?
AB 1482 applies to most residential rental properties in California. Key exemptions include:
- Single-family homes and condos that are separately alienable from any other dwelling unit — but only if (A) the owner is not a corporation, REIT, or LLC with a corporate member, and (B) the owner has provided the tenant with the required written notice of exemption using the exact statutory language prescribed by Civil Code § 1947.12(d)(5)(B)
- Housing with a certificate of occupancy issued within the previous 15 years (a rolling exemption — once the certificate is more than 15 years old, the exemption lapses)
- Units already subject to a local rent control ordinance with a more restrictive rent cap
- Owner-occupied duplexes (where the owner occupies one of the two units as a principal residence)
- Certain affordable and deed-restricted housing
- Dormitories operated by educational institutions
The Rent Cap
Under Civil Code § 1947.12, annual rent increases are limited to the lower of 10%, or 5% plus the percentage change in the regional Consumer Price Index (CPI). The baseline for calculating the increase is the lowest gross rental rate charged for the unit at any time during the 12 months before the effective date of the increase. A maximum of one rent increase is permitted per 12-month period.
Landlords must provide at least 30 days' written notice for rent increases of 10% or less, and 90 days' notice for increases over 10% (Civil Code § 827). Because the AB 1482 rent cap limits increases to 10% or less, compliant increases on covered properties will generally require only 30 days' notice.
A common compliance error involves "banking" — attempting to carry over unused increases from prior years. AB 1482 does not authorize banking. Each annual increase stands on its own.
Interaction with Local Ordinances
AB 1482 was designed to coexist with local rent control. If a property is already covered by a local rent stabilization ordinance that is more restrictive than AB 1482, the local ordinance generally controls the permissible rent increase. The rent cap exemption under § 1947.12 and the just cause exemption under § 1946.2 operate independently. Landlords should never assume that compliance with one set of rules satisfies the other.
Disclosure Requirements
Landlords subject to AB 1482 must provide tenants with a written notice, in no less than 12-point type, informing them of the applicable rent cap and just cause protections. This notice must be provided to all new and existing tenants. For exempt properties claiming the single-family exemption, a separate notice using the exact statutory language must be provided; without it, the exemption cannot be claimed. (Civil Code §§ 1946.2(f)–(g), 1947.12(d)(5)(B).)
Just Cause Eviction Requirements
Civil Code § 1946.2 requires landlords to have just cause to terminate a tenancy once the tenant has continuously and lawfully occupied the unit for 12 months. Just cause is divided into at-fault grounds (tenant misconduct) and no-fault grounds (landlord's legitimate business reason). For no-fault terminations, the landlord must provide relocation assistance equal to one month's rent — either by direct payment within 15 calendar days of serving the notice, or by waiving the final month's rent.
AB 1482 and Corporate Ownership
The single-family home exemption does not apply if the property is owned by a corporation, REIT, or LLC in which at least one member is a corporation. Even a single corporate entity in a multi-member LLC ownership structure can eliminate the exemption. Landlords with properties held in business entities should carefully review their ownership structure to determine whether the exemption applies.
Sunset
AB 1482's rent cap (§ 1947.12) and just cause (§ 1946.2) provisions are currently set to sunset on January 1, 2030, unless extended or modified by the Legislature. Landlords should monitor legislative developments.
This article is for general informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by reading this material. Laws vary by jurisdiction and are subject to frequent change. Consult a qualified attorney before taking any legal action.