California’s Assembly Bill 1482, also known as the Tenant Protection Act, changed how landlords handle rent increases and evictions. If you own or plan to invest in residential rental properties in California, this law affects your decisions.
Rent increase limits you must follow
AB 1482 caps annual rent increases. You can raise rent no more than 5% plus the local inflation rate, with a total cap of 10%. This applies to most apartments built before 2005. If your property is covered, you need to plan around these limits when estimating future cash flow. Properties built in the last 15 years, single-family homes (if not owned by corporations), and duplexes where the owner lives in one unit may be exempt.
Eviction protections that apply to tenants
The law also includes just cause eviction rules. You can only evict tenants for specific reasons once they’ve lived in a unit for more than 12 months. Valid reasons include failure to pay rent, lease violations, or if you plan to move into the unit or take it off the rental market. This means you need to document all interactions with tenants and follow clear procedures when ending a lease.
How AB 1482 affects your property strategy
You should review how this law fits with your investment goals. If your rental properties fall under these rules, your income potential may be more stable but less flexible. Consider timing property upgrades or ownership changes to manage rent caps effectively. Also, staying aware of local ordinances matters, since cities can layer additional rules on top of AB 1482.
To stay compliant, you must understand which of your properties are covered and follow the rules. Make sure you adjust lease terms, rent increases, and tenant notices to reflect AB 1482 requirements. Failing to comply can lead to legal trouble and extra costs.
