Insights·Rental Law

AB-1482 Tenant Protection Act: What SGV Property Owners Need to Know

California's statewide rent cap went into effect January 1, 2020. Here are the key points for San Gabriel Valley landlords and investors — rent increase limits, just cause eviction rules, and which properties are exempt.

March 15, 2020

Note: This post summarizes publicly available information about AB-1482 for general educational purposes only. It is not legal advice. Please consult a licensed California real estate attorney before making decisions based on this information.

Overview

California AB-1482, the Tenant Protection Act of 2019, established a statewide rent cap effective January 1, 2020. It applies to most residential rental properties across California — including much of the San Gabriel Valley — and imposes both rent increase limits and just cause eviction requirements.

Rent Increase Limits

AB-1482 caps annual rent increases at 5% plus the local Consumer Price Index (CPI), with a hard ceiling of 10% per year. Landlords may increase rent no more than twice per 12-month period. If local CPI is 3.5%, the maximum increase that year is 8.5%.

How Local Rent Control Interacts

AB-1482 does not override local rent control ordinances — whichever law provides greater tenant protections governs. In the City of Los Angeles:

  • Buildings built before October 1978 fall under the LA Rent Stabilization Ordinance (RSO), typically capped at 4%.
  • Buildings built between October 1978 and 2005 (15+ years old) fall under AB-1482's 5% + CPI cap.
  • Buildings built after 2005 have no rent cap until they reach 15 years old.
  • Costa-Hawkins prevents cities from applying rent control to units built after February 1, 1995.

Just Cause Eviction

Once a tenant has lived in a covered unit for 12 months, the landlord may not terminate tenancy without just cause. There are two categories:

At-Fault Just Causes

  • Failure to pay rent
  • Material breach of the lease
  • Nuisance, waste, or illegal activity on the property
  • Refusal to sign a lease renewal on similar terms
  • Criminal activity directed at the owner or agent
  • Unauthorized subletting or assignment
  • Refusal to allow lawful owner access

No-Fault Just Causes

  • Owner or qualifying family member (spouse, domestic partner, children, grandchildren, parents, or grandparents) intends to occupy the unit
  • Withdrawal of the unit from the rental market
  • Intent to demolish or substantially remodel
  • Compliance with a government order requiring vacancy

Deciding to sell the property is NOT a just cause for eviction under AB-1482.

Relocation Assistance

For no-fault terminations where the tenant has occupied the unit for more than one year, the owner must pay one month's rent as relocation assistance — or waive the last month's rent. This must be paid within 15 days or the notice of termination is void.

Exempt Properties

  • Single-family homes where the owner-occupant rents no more than two units or bedrooms (including ADUs/JADUs)
  • A duplex where the owner occupies one unit as their principal residence at the start of the tenancy
  • Units issued a certificate of occupancy within the previous 15 years
  • Properties owned by a REIT, corporation, or LLC with at least one corporate member
  • Dormitories owned and operated by higher education institutions
  • Units where the tenant shares bathroom or kitchen with an owner-occupant

Required Tenant Notices

All tenants in covered units must receive written notice explaining the just cause and rent cap protections. For existing tenancies (before July 1, 2020) this notice was required by August 1, 2020. For new or renewed tenancies on or after July 1, 2020, it must be included in the lease or as a signed addendum.

"California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information."