California AB 1482 Rent Control: Which Units Are Exempt in 2026?

AB 1482 caps annual rent increases at 5% + local CPI (max 10%) for covered units. The catch is what counts as exempt — a list that trips up a meaningful share of California landlords. Below: the full exemption map, the required notices, and what changed in 2026.

California's Tenant Protection Act of 2019 — implemented through AB 1482 — is one of the most misunderstood landlord statutes in the country. Most landlords know there's a rent cap and a just-cause eviction requirement. Fewer know exactly which units fall outside it. Getting that wrong cuts both ways: you either impose unnecessary rent caps on exempt units, or you skip required protections on covered ones and expose yourself to treble damages and attorney fees.

AB 1482 in one paragraph

AB 1482, enacted in 2019 and codified primarily at California Civil Code §1947.12 and §1946.2, does two things. First, it caps annual rent increases for covered residential units at 5% + the local CPI for the applicable April-to-April period, with an absolute maximum of 10%, regardless of how high CPI runs. Second, it requires "just cause" for evictions of tenants who have lived in a covered unit for 12 months or more. Both provisions apply statewide to covered rental units — overriding local ordinances only where local ordinances are less protective. Where local rent control (such as in San Francisco, Los Angeles, Oakland, or Santa Monica) is more protective, the local rules govern.

The law does not apply to all California rentals. The exemptions are where most landlords get confused, and where the consequences of a mistake are most costly.

The 5% + CPI cap (max 10%) explained

For covered units, the calculation works as follows:

Step 1: Identify the applicable CPI. AB 1482 uses the regional All-Items CPI for the area where the property is located, published by the Bureau of Labor Statistics for the April-to-April period ending that year. California has multiple regional CPI indices (Los Angeles, San Francisco, Riverside-San Bernardino, San Diego, etc.). Use the index for your property's region.

Step 2: Add 5% to the CPI percentage. Example: if the Los Angeles CPI for April 2024 to April 2025 was 4.2%, your cap is 5% + 4.2% = 9.2%.

Step 3: Cap the result at 10%. If CPI was 6%, 5% + 6% = 11%, but the law caps it at 10%.

Practical numbers for 2026:

Los Angeles area: 5% + ~3.5% CPI = cap of approximately 8.5%
Bay Area: 5% + ~3.8% CPI = cap of approximately 8.8%
San Diego: 5% + ~3.6% CPI = cap of approximately 8.6%

These are illustrative — pull the actual BLS figures for your region and the applicable April-to-April period before issuing any rent increase notice.

What the cap means operationally:

You cannot raise rent above the cap in any 12-month period for a covered unit, regardless of what market rents are doing
The cap applies to each 12-month period, not to the life of the tenancy
If you skipped a rent increase in a prior year, you cannot "bank" the unused percentage and apply it in a future year
The cap resets annually — a new CPI reading each April determines next year's cap

The full exemption list

This is the section where landlords most often go wrong. The exemptions are specific and, in some cases, require affirmative action to preserve them.

Exempt categories under AB 1482:

1. Single-family homes and condominiums Single-family homes and condos are exempt if the owner delivers a written notice to the tenant that the unit is exempt. The exemption is not automatic just because the unit is a house or condo — the notice requirement is mandatory. Without the notice, the unit is treated as covered. The required language is specified in Civil Code §1947.12(d)(5): the notice must state, essentially, that this property is not subject to the rent limits imposed by Civil Code §1947.12.

2. New construction (units less than 15 years old) Units are exempt if they were issued a certificate of occupancy within the 15 years prior to the date of the notice of rent increase. This is a rolling exemption — a unit built in 2012 was exempt through 2026 but loses the exemption in 2027. Operators need to track their buildings' ages. The 15-year clock runs from certificate of occupancy, not from the date the building was first rented or when you acquired it.

3. Owner-occupied buildings with 2, 3, or 4 units A duplex, triplex, or quadplex where the owner occupies one of the units as their principal residence is exempt. This exemption requires that the owner actually occupy the unit — using it as a secondary address or occasional residence does not qualify. If the owner moves out, the exemption is lost for all units in the building.

4. Dormitories Student dormitories owned and operated by educational institutions are exempt.

5. Units with affordable housing deed restrictions Units restricted by deed to be affordable at a specified income level are exempt, as they are already regulated under separate frameworks.

6. Hotels and motels Transient occupancy facilities are exempt.

7. The LLC / corporate member rule This is the one most frequently misunderstood. Single-family homes and condos are only exempt from the rent cap if they are NOT owned by:

A corporation
A real estate investment trust (REIT)
A limited liability company (LLC) in which at least one member is a corporation

If you own a single-family home through an LLC that has a corporate member, the exemption disappears and the home is covered by AB 1482. If your LLC has only individual members (no corporations), the single-family home may still qualify for the SFH exemption — but only with the required written notice to the tenant.

This corporate-member rule catches many owners who set up LLCs for liability protection and then place a management company (which is a corporation) as a co-member. Consult your attorney on the entity structure before assuming the SFH exemption applies.

Exemption decision tree (work through in order):

Is this a unit in a building of 1–4 units where the owner occupies one unit as a primary residence? → Exempt
Was the unit issued a certificate of occupancy within the last 15 years? → Exempt
Is it a single-family home or condo, AND is ownership NOT through a REIT, corporation, or LLC with a corporate member? → Potentially exempt — requires written notice to tenant
Is it subject to a local rent control ordinance more protective than AB 1482? → Local rules govern, but AB 1482 just-cause eviction rules may still apply
None of the above? → Covered by AB 1482

Required tenant notices

AB 1482 has specific notice requirements that differ by situation.

Notice of AB 1482 coverage (required for covered units): For any tenancy in a covered unit that began (or was renewed) after January 1, 2020, you must provide tenants with a written notice that the unit is covered by the Tenant Protection Act and that the rent increase cap and just-cause eviction rules apply. California Civil Code §1947.12(h) specifies the required notice language. If you haven't already provided this notice in existing tenancies, provide it at the next lease renewal.

Notice of exemption (required for single-family homes and condos): For SFHs and condos relying on the exemption, Civil Code §1947.12(d)(5) requires that you provide this notice in the lease or rental agreement, or as a separate written notice, stating that the property is not subject to the rent limits imposed by Civil Code §1947.12. This language must be explicit. "The property is exempt from rent control" is insufficient — the statute requires you to cite the specific code section.

For guidance on California-specific security deposit rules that also apply to these units, the two frameworks often need to be analyzed together.

Rent increase notices: California requires advance notice of rent increases: 30 days' notice for increases of 10% or less, and 90 days' notice for increases greater than 10%. Under AB 1482 caps, most increases will be at or below 10%, so the 30-day rule typically applies. But note: if you're in a local jurisdiction with stricter notice requirements, the local rules control.

Proper delivery: Notices must be delivered in writing — personally, by mail, or by posting at the premises. Electronic notice is generally not sufficient unless the tenant has specifically agreed to it in writing.

What changed in 2026

The core structure of AB 1482 — the 5%+CPI cap, the just-cause eviction requirement, the exemption list — has not changed since the law's effective date in January 2020. The major updates in the 2026 landscape are:

Rolling new-construction exemption: Buildings completed in 2011 lost their 15-year new-construction exemption in 2026. Operators who relied on this exemption for buildings from 2009 to 2012 should verify their compliance posture now.
Updated CPI figures: The applicable CPI for 2025–2026 rent increases reflects the BLS figures released in spring 2025. Pull the current figures for your region before issuing any notices.
Local ordinance stacking: Several California cities have passed or strengthened local rent control ordinances since AB 1482. In cities with local ordinances (LA, SF, Oakland, San Jose, Santa Ana, Berkeley, and others), the local ordinance typically governs if it is more protective for tenants. AB 1482's just-cause eviction rules, however, still apply in some cases where local ordinances don't have equivalent provisions.

For California landlords evaluating software tools for compliance tracking, property management platforms built for California operators typically include notice templates and rent increase tracking calibrated to the AB 1482 caps.

Common misunderstandings

"My unit is single-family, so I'm automatically exempt." No. The SFH exemption requires a written notice to the tenant. If you didn't provide the notice, the unit is treated as covered regardless of its property type. Provide the notice in writing at the next lease execution or renewal.

"I can bank unused rent increases." No. The cap applies to each rolling 12-month period. If you didn't raise rent in 2024, you cannot add that unused percentage to your 2025 increase. You get one cap per year.

"AB 1482 doesn't apply in LA because LA has its own rent control." Partial. LA's local rent stabilization ordinance (RSO) covers pre-1978 apartments in the city, using different caps and different procedures. For units covered by the LA RSO, the RSO governs. But for units not covered by the RSO (post-1978 buildings, newer units), AB 1482 applies. The two frameworks stack — but typically don't overlap on the same unit at the same time.

"I can raise the rent above the cap when there's a new tenant." Correct — AB 1482 only caps increases for existing tenants during their tenancy. When a unit turns over (previous tenant moves out or is evicted), you can reset the rent to market rate for the new tenant. This is a significant practical distinction.

"The just-cause eviction rules only apply if I'm raising rent." No. The just-cause eviction requirement under AB 1482 is independent of the rent increase cap. If a tenant has lived in a covered unit for 12 months, you need just cause to terminate the tenancy regardless of what's happening with rent.

FAQ

How do I find the applicable CPI for my AB 1482 rent increase calculation? Go to the Bureau of Labor Statistics website and find the "All Items CPI" for your metropolitan area for the April-to-April period covering the 12 months prior to your rent increase notice. California's DFPI website sometimes publishes a summary table — check there as a starting point, but always verify against the BLS source data.

Does AB 1482 apply to commercial rentals? No. AB 1482 applies to residential rental housing only. Commercial leases in California are not subject to the 5%+CPI cap or the just-cause eviction requirements.

My property is in Oakland. Does AB 1482 apply or Oakland's local rules? For units covered by Oakland's Just Cause for Eviction Ordinance and Rent Adjustment Program, Oakland's rules generally apply where they're more protective. Verify with an attorney familiar with Oakland housing law — the stacking of state and local rules is fact-specific.

If I sell the property, does the new owner have to continue following AB 1482? AB 1482 follows the unit, not the owner. A sale does not extinguish tenant protections. The new owner takes the property subject to existing tenancy rights under AB 1482. If the new owner intends to owner-occupy, the just-cause "owner move-in" ground applies with specific procedural requirements.

What are the penalties for violating AB 1482? Tenants can seek actual damages, punitive damages up to three times the actual damages, and attorney fees. Courts have broad discretion on the damages question. The risk of a tenant attorney's fee award alone should motivate careful compliance.

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This isn't legal advice. Consult an attorney licensed in your state.