Most landlords assume California rent control is limited to big cities like Los Angeles or San Francisco. Yet since January 1, 2020, the Tenant Protection Act of 2019 (AB 1482) has imposed statewide rent limits and eviction restrictions that affect a wide range of residential properties across California. For many owners, the biggest surprise is that compliance requires attention to both state law and stricter local ordinances.

The Rent Cap: 5 Percent Plus Inflation, Capped at 10 Percent

AB 1482 restricts annual rent increases to 5 percent of the current rent plus the regional Consumer Price Index (CPI), not to exceed 10 percent total. For example:

• If the CPI in a given year is 3 percent, the maximum allowable increase is 8 percent.

• If CPI is 7 percent, the cap holds firm at 10 percent.

This formula resets each year, and landlords must carefully track the CPI published for their specific metropolitan area. The cap applies to most multi-family properties built before January 1, 2005, but not to single-family homes or condos owned by individuals, unless held by a corporate entity, REIT, or LLC with a corporate member.

Just Cause Eviction Requirements

Beyond rent increases, AB 1482 also reshaped the eviction landscape by establishing “just cause” protections once a tenant has lived in a unit for 12 months (or 24 months if multiple tenants are on the lease). Landlords must now provide a legally valid reason to terminate a tenancy, which falls into two categories:

• At-Fault Just Cause, such as nonpayment of rent, breach of lease, nuisance, or criminal activity.

• No-Fault Just Cause, such as the owner moving into the unit, withdrawing the property from the rental market, or substantial renovations.

For no-fault evictions, landlords must generally provide relocation assistance equal to one month’s rent.

Interaction with Local Ordinances

AB 1482 sets a baseline standard, but cities with rent control, like Los Angeles, San Francisco, Berkeley, and Santa Monica, often impose stricter rent limits and tenant protections. In such cases, landlords must comply with whichever rule is more restrictive. For instance:

• A city ordinance may cap rent increases at 3 percent, even if the statewide law allows 8 percent.

• Local “just cause” rules may be broader, adding protections for tenants beyond those listed in AB 1482.

Compliance Strategies for Property Owners

To avoid costly penalties or tenant disputes, landlords should adopt proactive compliance practices:

1. Track local and state requirements annually. Rent caps and CPI adjustments change every year, and local rules may override AB 1482.

2. Audit lease agreements. Ensure leases include required AB 1482 disclosures, particularly for exempt properties like single-family homes.

3. Document grounds for eviction. Keep written records that justify at-fault or no-fault causes to withstand legal scrutiny.

4. Budget for relocation assistance. If planning a no-fault termination, include this mandatory cost in financial forecasts.

5. Seek legal guidance before action. Particularly in cities with layered local rules, consulting counsel can prevent unintentional violations.

Key Takeaway

AB 1482 created a statewide safety net for tenants, capping annual rent increases at 5 percent plus CPI (up to 10 percent) and requiring just cause for eviction after a year of tenancy. Yet it does not override local rent control ordinances, many of which go further. For property owners, compliance depends on staying current with both layers of law, building clear documentation, and approaching rent increases or evictions with a deliberate, informed strategy.