Complete Guide to AB 1482 Rent Caps and Notice Requirements
Note: Since 2020, AB 1482 (the Tenant Protection Act) limits annual rent increases for most California rental properties. This applies to covered properties statewide, including those in Placer County cities like Roseville, Rocklin, Auburn, and Lincoln.
AB 1482 Formula: Maximum increase = 5% + local CPI, capped at 10% per year
Example for Sacramento metro (covering Placer County):
Pro Tip: The California Department of Housing and Community Development publishes regional CPI figures annually, typically in September or October.
The cap applies to any 12-month period, not just calendar years. If you raised rent on March 1, 2024, you cannot raise it again until March 1, 2025, and that increase is limited based on the rent charged on March 1, 2024.
This prevents landlords from imposing multiple smaller increases within a year to circumvent the cap.
Note: Not all properties are subject to AB 1482 rent caps. Understanding exemptions is critical.
Warning: If your rental home is owned by an LLC—even if you're the sole member—it is NOT exempt from AB 1482.
Even if your increase complies with AB 1482's cap, you must provide proper advance notice.
For rent increases less than 10% within any 12-month period, California requires at least 30 days' written notice before the increase takes effect.
The 30-day period starts when you properly serve the notice. If you mail the notice, add 5 days to account for mail delivery time (35 days total).
Civil Code Section 827 requires 90 days' written notice for rent increases of 10% or more within any 12-month period.
Since AB 1482 caps increases at 10%, many landlords now trigger the 90-day requirement when imposing maximum allowable increases.
Rent increase notices must include:
California doesn't mandate specific forms, but the notice must be clear and unambiguous. Using standardized forms from the California Apartment Association or similar organizations is recommended.
Notices can be served by:
Document service with photos, certified mail receipts, or signed acknowledgments.
Generally, rent cannot be increased during a fixed-term lease unless the lease explicitly allows it. Most standard California leases prohibit mid-term increases.
If your lease includes a rent escalation clause ("Rent will increase by X% on [date]"), this is enforceable, but you must still comply with AB 1482 caps and notice requirements.
For month-to-month tenancies, you can increase rent with proper notice, subject to AB 1482 caps for covered properties. Timing is key—provide notice early enough that the increase takes effect after the required notice period.
Example: To raise rent effective March 1, provide 30-day notice by January 30 (or earlier for 90-day notice).
When a fixed-term lease expires, you can offer renewal at increased rent, subject to AB 1482 limits for covered properties. Provide the new lease terms with adequate time before the current lease expires.
If the tenant doesn't renew and the lease converts to month-to-month, the rent increase requires separate notice per the timelines above.
AB 1482 sets a statewide floor, not a ceiling. Cities can impose stricter rent control.
In the greater Sacramento and Placer County region, most cities rely on AB 1482 rather than local ordinances. However, some nearby jurisdictions (Sacramento, West Sacramento) have considered or implemented more restrictive measures.
If you own properties in multiple cities, verify each jurisdiction's specific rules. Where local ordinances exist, the more restrictive rule applies.
The increase percentage applies to the lowest rent charged in the 12 months before the increase. If you offered temporary rent concessions or discounts, use the actual amount charged, not the nominal lease rate.
If you offered one month free rent during a 12-month lease (effectively reducing monthly rent by 1/12), the base rent for calculating the next increase is the actual amount charged, not the stated lease rate.
The 10% cap applies cumulatively to any 12-month period. You cannot impose 5% in month six and another 5% in month twelve. The total increase over any rolling 12-month window cannot exceed the cap.
If a tenant breaks their lease and you re-rent to a new tenant, AB 1482 doesn't limit the rent you can charge the new tenant. The cap applies to increases during an existing tenancy, not new leases.
If additional occupants move in mid-lease, you may be able to increase rent, but this must be addressed in the lease and still complies with AB 1482 caps for covered properties.
If you voluntarily reduce rent (temporarily or permanently), future increases are still calculated from the lowest rent charged in the previous 12 months and subject to AB 1482 caps.
Violating AB 1482 rent increase limits carries serious consequences:
Tenants can sue to recover excess rent paid above the legal cap, plus interest. If you charged $2,700/month when the cap limited you to $2,500, the tenant can recover the $200/month overage for the entire period.
Civil Code Section 1947.12 allows prevailing tenants to recover attorney's fees and costs. Even a modest overcharge can result in substantial exposure when legal fees are factored in.
Courts can issue injunctions requiring you to roll back rents to compliant levels and preventing future violations.
Each fall, check the California Department of Housing and Community Development for updated CPI figures. Build this into your annual budget planning.
Provide notice earlier than required. Instead of exactly 30 days, give 45 or 60 days. This cushions against service errors or tenant disputes about notice receipt.
Maintain records of all rent increase notices, service dates and methods, and calculations showing compliance with AB 1482 caps. If a tenant challenges an increase, documentation is critical.
Before sending formal notice, inform tenants verbally or via email that an increase is coming. This softens the impact and gives them time to budget. Follow with the formal written notice per legal requirements.
Rather than avoiding increases for several years and then imposing a large jump, consider annual increases within the cap. Tenants often find small, predictable increases more acceptable.
If your property qualifies for an AB 1482 exemption (new construction, individually-owned single-family home, etc.), provide written notice to tenants at the start of tenancy.
Required language for single-family homes: "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."
Failure to provide this notice means the exemption doesn't apply, even if the property otherwise qualifies.
AB 1482 represents California's approach to balancing landlord revenue needs with tenant stability. While the caps limit aggressive rent increases, the 5% plus CPI formula allows adjustments for inflation and market conditions.
For Placer County landlords, understanding these rules is essential. Proper notice, accurate calculations, and systematic compliance protect your business while maintaining positive tenant relationships.
Lifetime Property Management handles all rent increase calculations, CPI tracking, and notice requirements for Roseville, Rocklin, Auburn, and Lincoln property owners. We ensure full compliance with AB 1482 while maximizing your rental income within legal limits.
Get personalized property management advice from our local experts.
AB 1482 caps annual rent increases at 5% plus inflation for most California rentals. Learn if your property is exempt, how to calculate the cap, and avoid costly penalties.
California mandates specific lease clauses while prohibiting others. Learn what must be included, what is forbidden, and best practices for legally compliant leases.
California evictions require just cause under AB 1482. Learn the complete process from notice to court judgment, including timelines, costs, and common mistakes to avoid.