California's AB 1482 caps rent increases at 5% plus inflation, up to 10%
California's statewide rent cap allows increases of 5% plus regional inflation, capped at 10%, but exempts some single-family homes, new construction, and owner-occupied duplexes.
California's Tenant Protection Act of 2019, known as AB 1482, introduced a statewide rent cap that applies to most apartment buildings and multi-unit properties over 15 years old. Governor Newsom signed the bill on October 7, 2019, and it took effect on January 1, 2020. The rent cap was retroactive to March 15, 2019, meaning rents that exceeded the allowable increase had to be reset to a compliant level by the law's effective date, though landlords were not required to refund amounts already collected above that limit. The law is set to expire on January 1, 2030.
AB 1482 created a baseline statewide rule that applies to properties in jurisdictions without their own local rent control ordinances. It was passed amid California's ongoing housing affordability crisis, when rents in many regions had risen faster than incomes for years. The law set a formula for annual rent increases based on inflation and established just-cause eviction protections, but exempted certain property types, including newer construction, single-family homes, and condominiums that meet statutory conditions.
How the rent cap formula works and updates each year
The rent cap allows increases of 5% plus the percentage change in the regional consumer price index (CPI), with a ceiling of 10%, whichever is lower. The CPI used is the percentage change in the regional Consumer Price Index between April of the prior year and April of the current year, for increases taking effect on or after August 1. For example, if regional CPI measures 3.7% from April 2025 to April 2026, the allowable rent increase is 5% plus 3.7%, equaling 8.7%. If CPI were 6%, the formula would yield 11%, but the 10% ceiling prevents the increase from exceeding that amount.
The new rent caps take effect on August 1st each year. For August 2026 through July 2027, Los Angeles and Orange County allow 8.7% increases, the Bay Area counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo allow 8.8%. These regional differences exist because the law names four metropolitan areas—Los Angeles, Riverside, San Diego, and San Francisco—each of which uses its own regional CPI data published by the Bureau of Labor Statistics. Properties outside those four areas use the statewide California CPI figure.
AB 1482 limits rent increases to no more than two increments within any 12-month period. Landlords can divide an allowed increase into two separate notices, but the combined amount of both increases cannot exceed the annual cap. For instance, a landlord in Los Angeles could raise rent 4% on January 1 and 4.7% on August 1, totaling 8.7%. If both increases are applied to an existing tenant, each requires at least 30 days' written notice for increases up to 10%; sources disagree on the notice required for larger increases, with some citing 60 days and others, pointing to Civil Code Section 827(b)(3)(A), citing 90 days.
The cap applies to the "gross rental rate," which is measured against the lowest rent charged for the unit at any point in the preceding 12 months, not simply the previous month's rent. Discounts, incentives, concessions, and credits are excluded from this calculation and must be listed separately from the rent in the lease. Tenants should verify that their notice of increase complies with the formula by checking their county's housing department website or online calculators that display current regional caps.
Which properties are exempt from the rent cap
Single-family homes are exempt from AB 1482's rent cap, but with a critical condition: the owner must provide written notice to the tenant stating the property is not subject to the law. If the owner fails to give this notice, the property loses its exemption and becomes subject to both the rent cap and just-cause eviction rules. The single-family exemption also does not apply if the property is owned by a corporation, a real estate investment trust (REIT), or a limited liability company with a corporate member. This means a homeowner renting out a house they own can raise rent without the cap, but an LLC, investment fund, or corporate entity cannot claim the exemption even for a single-family rental.
Condominiums are exempt from both the rent cap and just-cause eviction rules under the same conditions as single-family homes: the owner must not be a REIT, corporation, or LLC with a corporate member, and must give the tenant the required written notice. Owner-occupied duplexes where the landlord occupies one unit are also exempt, but only if the owner occupied that unit for the entire period of the tenancy. A duplex where the owner moved out after the tenant moved in would lose this exemption. Units that are deed-restricted for low- or moderate-income housing remain exempt, as do dormitories operated by educational institutions and certain student housing facilities.
Properties built within the last 15 years are exempt on a rolling basis, meaning that as the 15-year mark passes, those units become subject to the cap. A building completed in 2010 became subject to AB 1482 in 2025. Additionally, properties already subject to local rent control ordinances adopted on or before September 1, 2019—such as San Francisco's rent control, Berkeley's Rent Ordinance, or Los Angeles' Rent Stabilization Ordinance—remain covered by those local rules instead of AB 1482, though the local rules may be stricter. This means tenants in units covered by San Francisco's local rent control cannot rely on AB 1482; they are protected by the city's local law instead, which often provides greater protections.
Tenants in exempt properties may still have other protections under just-cause eviction rules or local ordinances depending on their location, but they have no state-level rent increase protections under AB 1482.
How rent increases are noticed and what happens if the landlord exceeds the cap
To calculate a legal rent increase under AB 1482, a landlord must know their region's current cap, which changes each August 1st. Landlords should obtain this figure from their county housing department or statewide resources and provide written notice to the tenant with the new rent amount and the date the increase takes effect. The notice requirements differ by increase size: increases up to 10% require at least 30 days' written notice; sources disagree on larger increases, with some citing 60 days and others, citing Civil Code Section 827(b)(3)(A), citing 90 days.
A rent increase that exceeds the regional cap is unlawful and unenforceable. Under Civil Code section 1947.12, a tenant facing an illegal increase has several options. The tenant can refuse to pay the excess and request a refund of overcharged amounts already paid, file a complaint with the local city or county housing authority, or pursue a civil lawsuit against the landlord for damages. The law does not explicitly authorize tenants to withhold rent entirely, though some local rent control ordinances may. Tenants have up to three years from the date of an illegal increase to sue. For rent that was overcharged between March 15, 2019 (when the law's protections retroactively began) and January 1, 2020 (when the law took effect), the rent had to be reset to what it would have been under the law's limits, though landlords were not required to refund amounts already collected above that limit.
The rent cap applies to the annual increase in any 12-month period, not a calendar year, so the timing of a tenant's lease renewal matters. If a tenant's lease renews on September 15, the relevant 12-month period runs from the previous September 15. A landlord who sends a notice of increase on August 20 cannot send another notice until September 15 of the following year.
“If an owner fails to provide written notice to tenants that a single-family home is exempt, the property loses its exemption and becomes subject to both the rent cap and just-cause eviction rules.”
Enforcement mechanisms and remedies for illegal increases
AB 1482 is enforced by cities and counties at the local level through their housing departments, and tenants can file complaints with these authorities. The California Attorney General, city attorneys, and county counsel also have express authority to pursue enforcement actions, including seeking injunctive relief, against landlords who violate the law.
When a tenant successfully challenges an illegal rent increase in court, California law provides for strong remedies. A tenant can recover the actual damages—the overcharged rent amount—plus attorney's fees and court costs, making lawsuits financially viable. If a court finds the landlord acted "willfully or with oppression, fraud, or malice," damages can be tripled, meaning a tenant who was overcharged $3,000 could recover up to $9,000 plus attorney's fees. The statute also allows for punitive damages in some cases.
The statute itself does not establish explicit misdemeanor criminal penalties or mandatory civil fines for rent cap violations. A tenant cannot waive their rights under AB 1482, and any lease clause attempting to do so is void as contrary to public policy. This means a landlord cannot ask a tenant to agree to larger increases in exchange for a lower initial rent or other consideration.
How local rent control ordinances interact with the state law
AB 1482 sets a statewide floor for rent increase protections, but cities and counties can impose stricter rules. San Francisco's local rent control ordinance, which applies to most rental units built before 1979, limits annual increases to between 1.6% and 6%, well below the 8.8% AB 1482 cap for the Bay Area. Los Angeles also maintains its own rent stabilization ordinance, which imposes a lower cap than the 5%-plus-CPI formula AB 1482 provides.
Tenants in jurisdictions with existing local rent control should review their city or county rules, as those rules typically apply instead of AB 1482 rather than alongside it. The stricter local rule generally governs. Jurisdictions without local rent control fall back to AB 1482, so a renter in a small city or unincorporated area uses the statewide formula. Cities including Beverly Hills, Inglewood, and Culver City also maintain their own rent stabilization ordinances, layering additional protections on top of the state law.
