California Rent Control Law: Understanding AB 1482

How does California rent control work under AB 1482 and the new law? 

AB 1482 is a statewide act that serves two primary functions: it limits rent increases and establishes eviction protection by removing the right of landlords to evict tenants without just cause.  

Rent Increase Limits: Under AB 1482, the allowable annual rent increase is capped at 5% plus a local cost-of-living adjustment, not exceeding 5%, which makes for a maximum possible increase of 10%. This law is retroactive, setting the baseline rent starting from March 2019. Importantly, there is no cap on how much landlords can raise rents between one tenant and the next.  

Eviction Protection: The eviction protection stipulates that landlords can only evict tenants for specific legal reasons, and this mainly pertains to tenants who have occupied the unit for over one year. 

“At fault” just causes for eviction under California rent control include non-payment of rent, criminal activity in the rental unit, or violations of the lease contract. Notably, landlords must provide tenants an opportunity to rectify any lease violations.  

“No fault” just causes for eviction involve situations like the owner moving into the unit, converting the apartment into a condo, or initiating renovations or demolitions. In these scenarios, landlords are required to offer the tenant a relocation fee equal to one month's rent.  

However, it’s important to note that enforcement of these rules is not automatic; tenants must engage a lawyer and pursue legal action against their landlord if they believe their rights are being violated. 

AB 1482 is set to expire on January 1, 2030, unless lawmakers decide to extend its provisions. 

Which multi-family rental units are covered under AB 1482?  

This new law encompasses all multi-family rental units in California, with certain exceptions.  

Newly constructed buildings are exempt from rent control until they are 15 years old, pursuant to the Costa Hawkins Act. Thus, currently, California rent control applies to buildings erected before 2005. This exemption is designed to incentivize builders to develop new rental housing without being subject to rent control for the initial 15 years.  

Additionally, duplexes where one unit is owner-occupied are exempt. Single-family homes and condos are also outside the rent control sphere unless owned by a corporation or a real estate investment trust (REIT).  

In municipalities with existing rent control laws, AB 1482 applies only to buildings not already covered by these stricter local regulations. For instance, in San Francisco, properties built before 1979 are governed by the San Francisco Rent Ordinance, while those constructed between 1979 and 2005 fall under AB 1482.