Advanced Finance·Ab1482

AB 1482 — Tenant Protection Act of 2019

Overview

Assembly Bill 1482 (the Tenant Protection Act of 2019) established the first statewide rent cap and just cause eviction requirements in California, effective January 1, 2020. For California real estate brokers — especially those practicing in property management, residential leasing, or investment property sales — a thorough understanding of AB 1482 is essential. Violations expose landlords to significant liability, and incorrect advice to investor clients can result in DRE disciplinary action.

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The Rent Cap Formula in Detail

AB 1482 limits rent increases to the lesser of:

  • 5% + the local Consumer Price Index (CPI), measured by the All-Items CPI for the applicable California region, using the most recent April-to-April percentage change, OR
  • 10% absolute maximum
  • How the formula works in practice:

  • If local CPI = 2.5%, the maximum increase = 5% + 2.5% = 7.5%
  • If local CPI = 6%, the maximum increase = 5% + 6% = 11% → but 10% is the ceiling, so maximum = 10%
  • If local CPI = 0.5%, the maximum increase = 5% + 0.5% = 5.5%
  • Anti-banking provision:

    Landlords cannot "bank" unused increase capacity. If a landlord increases rent by only 2% in year one when the cap allowed 8%, the unused 6% cannot be rolled forward to the next year.

    Multiple increases in 12 months:

    If a landlord makes multiple rent increases within a 12-month rolling period, the total cannot exceed the applicable cap. The 12-month window runs from the date of the most recent increase.

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    Properties Covered by AB 1482

    The rent cap and just cause eviction requirements apply to multi-unit residential buildings that are at least 15 years old at the time of the proposed rent increase. Coverage is rolling — a building built in 2010 becomes covered in 2025.

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    Properties Exempt from AB 1482

    Exempt properties: 1. Single-family homes (SFH) — UNLESS owned by a corporation, REIT, or LLC where at least one member is a corporation. If an SFH is institutionally owned, AB 1482 applies AND the owner must provide an exemption notice to tenants 2. Condominiums — if sold separately and owned by individual (non-institutional) landlords 3. Buildings built after February 1, 1995 — tied to the Costa-Hawkins Rental Housing Act 4. Duplexes where the owner occupies one unit as their primary residence 5. Government subsidized housing — units where rent is restricted by another program (Section 8 project-based, LIHTC, etc.) 6. Hotels and transient occupancy — stays under 30 days

    Exemption notice requirement: Landlords of exempt SFHs and condominiums must provide tenants with a written notice of exemption at lease start and before imposing above-cap increases. Failure to provide this notice may void the landlord's exemption claim.

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    Just Cause Eviction Requirements

    For covered units, landlords must have a legally recognized "just cause" to terminate a tenancy. Without just cause, a proper notice does not result in a valid eviction.

    At-Fault Just Cause (Tenant Misconduct)

    | Just Cause | Notes | |---|---| | Nonpayment of rent | Requires 3-day pay-or-quit notice first | | Material lease breach | Curable breaches require notice and opportunity to cure | | Nuisance or waste | Must substantially interfere with neighbors or damage property | | Illegal activity | Criminal activity on or near the premises | | Unauthorized subletting | Without required landlord consent | | Refusal to allow legal entry | After proper 24-hour notice | | Failure to vacate after notice | After lease term ends without renewal |

    No-Fault Just Cause (Tenant Did Nothing Wrong)

    | Just Cause | Requirements | |---|---| | Owner or immediate family move-in | Owner, parent, child, grandchild, grandparent, sibling, or in-law; must actually occupy for at least 12 months | | Withdrawal from market (Ellis Act) | Permanently removes property from rental market | | Substantial rehabilitation | Requires permits; work cannot be done while tenant occupies | | Demolition | Requires permits; cannot use as pretext |

    Relocation assistance for no-fault evictions: For ALL no-fault just cause evictions, the landlord must pay the tenant one month's current rent as relocation assistance, OR allow the tenant to remain rent-free for the final month. Failure to pay relocation assistance is independently actionable.

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    Owner Move-In Rules in Detail

    Owner move-in evictions under AB 1482 are subject to specific requirements:

  • The person moving in must be an immediate family member (as defined above)
  • They must actually move in within 90 days of the tenant vacating
  • They must occupy the unit for at least 12 continuous months as their primary residence
  • If the landlord fails to comply (doesn't actually move the family member in, or removes them within 12 months and re-rents), the tenant has a right to return AND may sue for three times the actual damages plus attorney's fees
  • Courts have found this provision particularly potent against landlords who use owner move-in as a pretext to raise rent
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    Penalties for AB 1482 Violations

    Violations of AB 1482 expose landlords to:

  • Actual damages (overcharged rent, moving expenses, increased rent at new unit, etc.)
  • Punitive damages up to three times actual damages if willful
  • Attorney's fees (tenant as prevailing party recovers fees)
  • Potential DRE disciplinary action for licensed brokers and property managers who advise or facilitate violations
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    Local Rent Control Ordinances — Stricter Rules Preserved

    AB 1482 is a floor, not a ceiling. Local rent control ordinances that are stricter than AB 1482 are expressly preserved. Examples:

  • San Francisco: Buildings pre-1979; very strict just cause rules; no vacancy decontrol
  • Los Angeles (City/County) RSO: Buildings pre-October 1978; strict just cause
  • Berkeley, Oakland, Santa Monica, West Hollywood, San Jose: All have stricter local rules
  • Brokers practicing in rent-controlled cities must research local ordinances — these are more protective of tenants than AB 1482 and apply to older building stock not protected by Costa-Hawkins.

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    Interaction with Costa-Hawkins Rental Housing Act

    The Costa-Hawkins Act (1995) prohibits local rent control from applying to:

  • Post-February 1, 1995 construction
  • Single-family homes
  • Condominiums (individual ownership)
  • AB 1482 applies the same building age rule (post-1995 = exempt) and the same SFH/condo rule (individual ownership = exempt). Two statewide repeal attempts (Props 10 in 2018 and 21 in 2020) both failed, so Costa-Hawkins remains.

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    Key Terms

  • AB 1482: Tenant Protection Act of 2019 — statewide rent cap (5% + CPI, max 10%) and just cause eviction
  • Rent cap formula: Lesser of 5% + local CPI or 10% per 12-month period
  • Anti-banking: Unused rent increase capacity cannot roll forward
  • Covered units: Multi-unit buildings at least 15 years old, not otherwise exempt
  • At-fault just cause: Eviction based on tenant misconduct
  • No-fault just cause: Eviction not based on tenant behavior; requires 1 month relocation assistance
  • Relocation assistance: One month's rent paid by landlord for all no-fault just cause evictions
  • Exemption notice: Written notice required for landlords claiming SFH/condo exemption
  • Costa-Hawkins: 1995 state law exempting post-1995 buildings and individually owned SFHs/condos from local rent control — preserved under AB 1482
  • Ellis Act: State law allowing permanent withdrawal from rental market as no-fault just cause

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Quiz Questions:

Q1. In 2026, the regional CPI change is 4.8%. Under AB 1482, what is the maximum allowable rent increase for a covered apartment building?

A) 4.8% B) 9.8% C) 10% D) 5%

Answer: B — 5% + 4.8% = 9.8%, which is less than the 10% ceiling. The maximum is 9.8%.

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Q2. A landlord owns a single-family home built in 2003 titled in an LLC with one corporate member. The landlord raises rent 15%. Under AB 1482:

A) The SFH is exempt — single-family homes are always exempt from AB 1482 B) AB 1482 applies because the LLC has a corporate member; 15% violates the rent cap C) AB 1482 does not apply — buildings built after 1995 are always exempt D) The LLC structure is irrelevant if the landlord lives on-site

Answer: B — The SFH exemption does not apply when the property is owned by an LLC with a corporate member. AB 1482 covers the property, and 15% exceeds the allowable cap.

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Q3. A landlord with a covered unit wants to evict a tenant so that the landlord's adult daughter can move in. What is required?

A) Owner/family move-in is not valid just cause under AB 1482 B) The landlord must pay one month's rent as relocation assistance; the daughter must actually move in and occupy for at least 12 months C) Owner move-in is valid just cause but no relocation assistance is required D) Owner move-in applies only if the owner personally moves in, not a family member

Answer: B — Owner/immediate family move-in is valid no-fault just cause. Relocation assistance (1 month's rent) is required. The family member must actually occupy for at least 12 months or the landlord faces triple damages.

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Q4. A landlord in Los Angeles owns a 10-unit building built in 1975. AB 1482 allows 9% but the LA RSO allows only 4%. Which applies?

A) AB 1482 — state law preempts stricter local rules B) The LA RSO — local ordinances stricter than AB 1482 are preserved; 4% governs C) The landlord may choose D) The RSO is superseded because it predates AB 1482

Answer: B — AB 1482 is a floor, not a ceiling. Stricter local ordinances are preserved. The LA RSO's 4% limit governs this building.

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Q5. An investor purchases a 6-unit building built in 2009 in 2024. Does AB 1482 apply?

A) No — post-1995 buildings are exempt under Costa-Hawkins B) No — buildings under 10 units are exempt C) Yes — as of 2024, a 2009 building is 15 years old; it is a covered multi-unit building D) Yes — but only the just cause rules apply, not the rent cap

Answer: C — A 2009 building is exactly 15 years old in 2024 and meets the coverage threshold. Both the rent cap and just cause eviction requirements of AB 1482 apply.