Assembly Bill (AB) 1482 also referred to as the Tenant Protection Act of 2019 took effect on January 1, 2020 and expires on January 1, 2030. Under this California law, annual rent increases are capped at 5% plus Consumer Price Index (CPI) or 10% whichever is lower. Landlords/owners are also required to have “just cause” in order to terminate a tenancy. 

Rent increase limits

Annual rent increases are limited to 5% plus CPI, or 10%, whichever is lower. CPI data can be found via the U.S. Bureau of Labor Statistics.  

• Rent cannot be increased more than twice in one year and the total increase must not exceed the maximum increase limit
• Certain exemptions apply based on building type
• Excluded housing: 
  • New housing with certificate of occupancy within the past 15 years
  • Government subsidized or below market rate housing with rent based on income level
  • Single family homes or condos with no corporate ownership
  • Duplexes if the owner lives in the other unit
  • College dorms
  • Mobile homes and RVs in mobile home parks that are owned by the occupant

Just cause eviction protections

Landlords/owners need a valid reason to evict a tenant, which are identified by the following categories.

• At-fault eviction (nonpayment of rent, breach of lease, etc.).
• No-fault eviction (owner or family member intends to occupy the unit, intent to substantially remodel, etc.); no-fault eviction notices require relocation payments to the tenant 
• Certain restrictions and exemptions apply based on building type and term of occupancy
• Just cause protection requires at least 12 months of tenancy
• If a new tenant has been added to a lease, one or more of the existing tenants must have continuous tenancy of 24 months or more
• Excluded housing:
  • New housing with certificate of occupancy within the past 15 years
  • Government subsidized or below market rate housing with rent based on income level
  • Single family homes or condos with no corporate ownership
  • Duplexes if the owner lives in the other unit
  • College dorms
  • Hotels
  • Extended care and adult residential facility
  • Co-housing where owner shares kitchen or bathroom
  • ADU’s where owner occupies main unit