Understanding California's Statewide Rent Control and Just Cause Eviction Law
Assembly Bill 1482, signed into law in 2019 and effective January 1, 2020, established California's first statewide rent control and just cause eviction protections. Often called the Tenant Protection Act of 2019, AB 1482 fundamentally changed how landlords can increase rent and terminate tenancies across California.
The law applies to most residential rental properties in California, including those in Placer County, Roseville, Rocklin, and surrounding areas. If your property isn't specifically exempt, you're operating under AB 1482's restrictions whether you're a first-time landlord with one rental or a professional investor with a large portfolio.
Note: AB 1482 has two primary components: annual rent increase caps and just cause eviction requirements. This article focuses on the rent cap provisions—understanding what you can charge, when you can raise rent, and how to stay compliant.
Under AB 1482, covered properties cannot raise rent by more than 5% plus the local Consumer Price Index (CPI), with a maximum cap of 10% in any 12-month period. This applies regardless of whether you have month-to-month tenants or long-term lease renewals.
Calculating your allowable increase requires knowing your local CPI. California uses regional CPI data published by the Department of Industrial Relations. For Placer County and the greater Sacramento region, you'll reference the "All Urban Consumers" CPI for the Sacramento-Roseville-Folsom metropolitan area.
AB 1482 Formula: Maximum increase = 5% + Local CPI change, capped at 10%
Example calculations for 2025:
Pro Tip: The California Department of Housing and Community Development publishes the applicable CPI rates each year, typically in September or October. For properties in Roseville, Rocklin, Auburn, Lincoln, and other Placer County cities, check the Sacramento metro CPI data.
The cap applies to any 12-month period, not just calendar years. If you raised rent on March 1, 2024, you cannot impose another increase until March 1, 2025, and that increase is calculated based on the rent amount from March 2024.
This prevents landlords from imposing multiple smaller increases within a year to circumvent the cap. The law looks at the total rent increase over any rolling 12-month window.
AB 1482 doesn't apply to all rental properties. Understanding exemptions is critical—many landlords incorrectly assume their properties are exempt when they're actually covered.
Residential properties with certificates of occupancy issued within the previous 15 years are exempt. The 15-year exemption period rolls forward annually:
Note: This exemption aims to encourage new housing construction by allowing market-rate pricing for newer properties. Once a property ages beyond 15 years, AB 1482 rent caps apply.
Single-family homes and condominiums are exempt only if they meet both of these criteria:
Warning: If your rental home is owned by an LLC, corporation, or Real Estate Investment Trust (REIT), it is NOT exempt from AB 1482—even if it's a single-family detached home. The corporate ownership structure triggers coverage under the law.
Legal Requirement: The required notice must be provided in at least 12-point font and state: "This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2(e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined in Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation."
Duplexes are exempt if the owner occupies one of the units as their principal residence. This exemption recognizes the unique dynamics of owner-occupied multi-family properties.
Warning: If you move out, the exemption ends, and AB 1482 applies going forward.
Additional property types exempt from AB 1482:
Even if your increase complies with AB 1482's cap, you must provide proper notice. California's notice requirements depend on the size of the increase.
For rent increases less than 10%, landlords must provide at least 30 days' written notice. This applies to month-to-month tenancies. For leases, rent increases typically occur at renewal, though lease terms should be reviewed to confirm.
California Civil Code Section 827 requires 90 days' written notice for rent increases of 10% or more within any 12-month period. Given AB 1482's cap, 10% is now the maximum allowable increase, meaning many landlords will trigger the 90-day requirement.
Pro Tip: The notice period begins when you deliver the notice to the tenant. Proper service methods include personal delivery, leaving it with a household member of suitable age, or mailing it via first-class mail (which extends the notice period by five days).
Rent increase notices must be in writing and include:
Violating AB 1482 carries significant consequences. Understanding the risks helps landlords prioritize compliance.
Warning: If you increase rent beyond AB 1482's cap, tenants can sue to recover the excess amount plus additional penalties.
Note: AB 1482 violations are civil matters, not criminal offenses. While you won't face jail time, the financial and reputational consequences can be severe, particularly for professional property managers or landlords with multiple units.
AB 1482 establishes a statewide floor, not a ceiling. Cities can enact stricter rent control ordinances. In the Sacramento region, most jurisdictions rely on AB 1482's statewide rules rather than imposing additional local regulations.
However, Placer County landlords should monitor local policy developments. Sacramento, West Sacramento, and other nearby cities have considered or implemented more restrictive rent control measures. If you own properties across multiple jurisdictions, track each city's specific requirements.
Where local ordinances exist, landlords must comply with the more restrictive rule. For example, if a local ordinance caps increases at 5% and AB 1482 would allow 8%, the 5% local cap applies.
If your property qualifies for an exemption, document it thoroughly:
Pro Tip: Each fall, check the updated CPI figures for your region. The California Department of Housing and Community Development typically publishes these in September or October. Calculating your allowable increase before budget planning season helps set realistic revenue expectations.
Don't cut notice periods close. Provide 90 days' notice for any increase approaching 10%, even if you're slightly under. Service errors, mail delays, or tenant disputes about receipt can jeopardize the increase. Extra time provides margin for error.
Maintain records of all rent increase notices, including:
Rather than deferring increases for several years and then imposing a large adjustment, consider annual increases within the cap. Tenants often find regular, predictable increases more acceptable than large jumps, even if the cumulative amount is similar.
Warning: These common errors can invalidate your rent increases and expose you to tenant lawsuits.
Many landlords incorrectly believe single-family homes are always exempt. If your property is held in an LLC—a common asset protection strategy—AB 1482 applies unless another exemption covers the property. Review ownership structures carefully.
The percentage increase applies to the lowest rent charged in the 12 months prior to the increase. If you reduced rent temporarily or offered concessions, you can't use the reduced amount as the base for calculating the next increase. The lawful base rent is the lowest amount actually charged.
You cannot raise rent by 8% in month six and another 2% in month twelve to stay under the "annual" cap. The law limits increases over any 12-month period. Back-to-back increases violate AB 1482 if they cumulatively exceed the cap within 12 months.
If your single-family property qualifies for exemption, failing to provide the required written notice means the exemption doesn't apply. The notice must be provided at or before the start of tenancy. Retroactively claiming an exemption after the tenancy begins won't hold up legally.
Staying informed about AB 1482 and related laws is essential for compliance. Here are reliable resources:
Lifetime Property Management stays current on AB 1482 and all California landlord-tenant laws. We handle rent increase calculations, notice requirements, and compliance documentation for Placer County property owners, removing the burden and risk of navigating these regulations independently.
AB 1482 represents a permanent shift in California's rental landscape. While the 5% plus CPI cap remains relatively moderate compared to older rent control ordinances in cities like San Francisco and Los Angeles, the statewide application means no California landlord can ignore these rules.
For Placer County landlords, particularly those with newer properties or single-family homes owned individually, exemptions may apply. But exemption status must be properly documented and maintained. For covered properties, diligent tracking of CPI changes, careful calculation of increases, and proper notice procedures are essential.
The stakes are high—tenant lawsuits, damages, and attorney's fees make compliance a business imperative, not just a legal formality. By understanding AB 1482's requirements and implementing systematic compliance processes, landlords can continue raising rents appropriately while minimizing legal risk.
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