California’s AB-1482 Explained: How the New Rent Cap Affects Landlords and Tenants

California’s AB-1482 Explained: How the New Rent Cap Affects Landlords and Tenants

Explore the implications of Rent Cap AB-1482 in California for landlords and investors. Understand exemptions, legal obligations, and tenant rights under this rent control law. Stay updated and compliant.

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California’s AB-1482 Explained: How the New Rent Cap Affects Landlords and Tenants

Are you a real estate investor or a landlord in California?

Rent Cap AB-1482 is the latest addition to landlords’ rent control laws. This new law, which went into effect on January 1st 2020, has significantly changed the rental landscape for many property owners in The Golden State. All landlords and investors should familiarize themselves with this legislation. This includes understanding its exemptions as well as how it affects their legal obligations when renting out residential properties throughout the state.

In this blog post, we will discuss what you need to know about Rent Cap AB-1482 and why it’s important to stay informed so that you don’t find yourself on the wrong side of compliance!

Overview of Rent Cap AB-1482

Rent control has been a widely debated topic for many years. In November 2019, California Governor Gavin Newsom signed Assembly Bill 1482 (AB-1482), which implemented a rent cap across the state. Under the new law, landlords are prohibited from raising rents by more than 5% plus the rate of inflation in any 12-month period. The goal of AB-1482 is to protect renters from the skyrocketing rent prices that have plagued many California cities in recent years. While landlords may not be thrilled with this change, tenants are rejoicing at the prospect of more stable housing costs. Overall, AB-1482 is an important step toward addressing the affordable housing crisis in California.

Properties Exempt from the AB-1482 Rent Cap

The recently passed AB-1482 rent control law in California has been a hot topic of discussion for landlords and tenants alike. While the law imposes a limit on the maximum rent increase a landlord can implement yearly, certain properties are exempt from this cap. These properties include single-family homes, condos, and townhomes that were built after 2004. Additionally, properties that are managed by government agencies or non-profit organizations are also exempt. 

It’s important to note that while these properties are exempt from the rent cap, they are still subject to other landlord-tenant laws, such as the requirement for just cause before eviction. As the AB-1482 rent control law continues to shape the California rental market, landlords and tenants alike need to stay informed about their rights and responsibilities.

How to Identify Single-Family Homes Exempt from the Act

When it comes to identifying single-family homes that are exempt from the Act, it’s important to understand the criteria that must be met. These homes are typically owned by individuals and not corporations, and they are also not used for business or commercial purposes. Moreover, the homes must be rented out by the owners themselves and not by a property management company. 

If these conditions are met, the home is exempt from the Act and the owner is not required to adhere to its regulations. It’s important to do your research and properly identify these exempt homes to avoid any legal issues down the road.

Properties That Are Not Exempt from the Rent Cap AB-1482

The rent cap AB-1482 implemented in California has sparked a lot of debates and discussions among landlords and tenants. One of the fundamental aspects of the new law is that certain properties are not exempted from the rent cap. Although this may seem like a disadvantage to landlords, it brings balance and protection to tenants’ rights. 

The properties that fall under this category include single-family homes, townhouses, duplexes, and condominium units that are owned by corporations or real estate investment trusts. This means that the landlords who own these types of properties must adhere to the rent increase limit of 5% plus the Consumer Price Index (CPI) and cannot arbitrarily raise rents as before. While this may affect landlords’ income, it gives tenants a more stable and predictable rental rate, ensuring they are not priced out of their homes.

Reasons Landlords Choose Not to Apply for Exemption 

As a landlord, applying for certain exemptions may seem daunting or even unnecessary. However, there are some key reasons why not applying for an exemption could end up being a costly mistake. For one, failing to apply could result in hefty fines or legal trouble down the line. Additionally, landlords who choose not to apply for certain exemptions may miss out on important tax benefits. 

It is important to weigh the potential risks and rewards when deciding whether or not to pursue an exemption as a landlord. By understanding the benefits and taking the necessary steps, landlords can ensure they are fully protected while maximizing their financial benefits.

Rent Cap AB-1482 and Tenant Rights

As a tenant, it’s important to understand your rights when it comes to rent increases. California’s Assembly Bill 1482, also known as the Rent Cap Act, sets limits on how much landlords can increase rent each year. Under this law, landlords are allowed to increase rent by no more than 5 percent plus the rate of inflation in a given year. This means that tenants can enjoy more predictable rent increases and avoid skyrocketing rental costs.

In addition to rent caps, tenants also have other legal protections, such as the right to receive proper notice before any rent increase. It’s important to stay informed of your rights as a tenant and work with your landlord to ensure fair treatment and a comfortable living situation.


Rent Cap AB-1482, while providing protection to rental households in California, contains several exemptions which landlords may use to avoid rent cap regulations. While understanding the rules of the act is important for both tenants and landlords, it is beneficial for tenants to also know their rights as guaranteed under AB-1482. Certain properties can be exempt from the rent cap if determined criteria are fulfilled. Oftentimes landlords decide not to exercise these rights as given within the law. 

Rent Cap AB-1482 gives tenants legal assurance of basic protections while also providing clarity when it comes to disagreements on rent hikes and tenant rights.  Staying informed with updates on AB-1482 and basic tenant laws will ensure that you stay ahead of any unexpected opportunities or run-ins with your landlord or property owner. Learn more about topics surrounding real estate investing and property management by visiting www.primior.com

Johnney Y. Zhang

CEO, Primior Asset Management

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