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AB 1482: A Brief Overview In 2019, California Governor Gavin Newsom signed Assembly Bill 1482 to cap rent increases statewide for the next 10 years. Effective on January 1, 2020, the bill limits annual rent increases at 5 percent, plus any rise in the consumer price index, which cannot exceed 10 percent.

Rent increases cannot exceed 5% plus the percentage of annual increase in the cost of living adjustment promulgated by the U.S. Department of Labor, Bureau of Labor Statistics. The total increase is capped at 10% annually, and only one increase is allowed in any 12 month period.

Giles: So, single-family homes are exempt unless the property is owned by a real estate investment trust (REIT), a corporation, or a limited liability company where one of the members is a corporation. But if you are an individual that owns a single-family home, the rent cap and the just cause ordinance do not apply.

A notice of exemption from AB 1482 is a notice that lets your tenants know that your rental property is exempt from AB 1482. This bill sets the maximum rent increase in California to 5% plus CPI, or at 10% (whichever is lower) per a 12 month period.

Under this statute, annual rent increases are limited to 5% plus the change in the regional Consumer Price Index (CPI), or no more than 10% of the lowest gross rental rate charged to the tenant during any 12-month period before the effective date of the increase.

Things to Know:Annual rent increases are limited to 5% after inflation over the next 10 years. Landlords must provide a just cause for evicting tenants. Single-family homes or duplexes that are owner-occupied are exempt. California cities that already have rent control laws in place are exempt.

Effective August 1, 2021, in the Los Angeles-Long Beach-Anaheim and Riverside-San Bernardino regions, the change in the CPI (April 2020 - April 2021) is 3.6%, so the maximum allowable annual rent increase is 8.6%.