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 overcharge on covered ones and owe the overcharge back, possibly with attorney's fees, and up to three times the overcharge if you acted willfully.

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. The state rent cap does not apply to housing under a local rent control that limits annual increases below the state cap, and it does not expand or limit local governments' power to regulate rents. 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 BLS CPI-U for your metro area (or, where BLS publishes none, the California CPI from the Department of Industrial Relations). An increase taking effect on or after August 1 uses the April-to-April change ending that year; one taking effect before August 1 uses the change ending the prior year. If no April figure is published for your area, the same comparison uses March instead, and the result is rounded to the nearest one-tenth of 1%. 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
• If the same tenant stays in occupancy, you cannot raise the rent in more than two increments over any 12-month period
• 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 CPI part changes each year: the change between that year's April index and the prior April's (March-to-March if no April figure is published) applies to increases taking effect on or after August 1 of that year

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, condos and other units that can be sold separately from any other dwelling unit (the statute's test, which also covers mobilehomes) are exempt only if the owner is not one of the entities listed in item 7 and the tenant has been given a written notice 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 exact statement is prescribed in Civil Code §1947.12(d)(5)(B)(i): it says the property is not subject to the § 1947.12 rent limits or the § 1946.2 just-cause rules, and that the owner is not a REIT, a corporation, or an LLC with a corporate member.

2. New construction (units less than 15 years old) Housing is exempt if it was issued a certificate of occupancy within the previous 15 years, unless it is a mobilehome. This is a rolling exemption — a unit whose certificate of occupancy was issued in 2012 stays exempt until the 15th anniversary of that certificate in 2027, then loses the exemption. 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 duplexes A property with two separate units in a single structure is exempt if the owner lived in one as their principal residence at the start of the tenancy and still does, and neither unit is an ADU or junior ADU. This exemption requires that the owner actually occupy the unit — using it as a secondary address or occasional residence does not qualify. The exemption lasts only so long as the owner continues to live there: once the owner moves out, the property no longer qualifies.

4. Dormitories Dormitories owned and operated by an institution of higher education or a K–12 school are exempt.

5. Units with affordable housing deed restrictions Housing restricted by deed, by a regulatory agreement with a government agency, or by another recorded document as affordable housing for very low, low, or moderate income households (as defined in Health and Safety Code §50093), or covered by an affordable-housing subsidy agreement, is exempt.

6. Hotels and motels Transient occupancy in a hotel, motel or similar facility that is subject to the local transient occupancy tax is outside this chapter of the Civil Code altogether (Civil Code §1940(b)), so the rent cap never reaches it. This comes from §1940, not from §1947.12's own list of exemptions.

7. The LLC / corporate member rule This is the one most frequently misunderstood. Single-family homes, condos and other separately sellable units 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
• Management of a mobilehome park (as defined in Civil Code §798.2)

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):

1. Is this one of two units in a single structure (neither an ADU/JADU), where the owner has lived in the other unit since the tenancy began? → Exempt
2. Was the unit issued a certificate of occupancy within the last 15 years? → Exempt
3. Is it a single-family home, condo or other unit sellable separately from any other dwelling unit (including a mobilehome), AND is the owner NOT a REIT, corporation, LLC with a corporate member, or mobilehome park management? → Potentially exempt — requires written notice to tenant
4. Is it subject to a valid local rent control that limits annual increases below the AB 1482 cap? → Exempt from the state cap — local rules govern the increase, but AB 1482 just-cause eviction rules may still apply
5. 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): §1947.12 itself prescribes no coverage notice. Its tenant notices are the exemption statement in §1947.12(d)(5)(B) and notice of each rent increase, given under Civil Code §827 (§1947.12(e)). Any separate notice of coverage comes from outside §1947.12 — check the current text of the Tenant Protection Act, including Civil Code §1946.2, for its wording and timing.

Notice of exemption (required for single-family homes and condos): For SFHs and condos relying on the exemption, Civil Code §1947.12(d)(5)(B) requires the prescribed statement in the rental agreement for any tenancy begun or renewed on or after July 1, 2020; for older tenancies it may be given separately. This language must be explicit. The exemption applies only if notice was given "using the following statement," so a generic line like "The property is exempt from rent control" does not meet it — reproduce the prescribed statement, which cites §1947.12 and §1946.2, word for word.

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 (Civil Code §827): at least 30 days' notice if the increase, alone or combined with other increases in the prior 12 months, is 10% or less of the rent charged at any time in that period, and at least 90 days' notice if it is greater than 10% (an increase caused by a required income or household recertification needs only 30 days). Under AB 1482 caps, most increases will be at or below 10%, so the 30-day rule typically applies. But note: if a state or federal statute or regulation, a recorded regulatory agreement, or your lease provides a longer notice period, the longer period applies — and check your local ordinance for any additional requirements.

Proper delivery: Rent increase notices must be in writing and either handed to the tenant personally or served by mail under Code of Civil Procedure §1013 (Civil Code §827(b)). Posting at the premises is not one of the listed methods, so don't rely on posting, email or text alone.

What changed in 2026

The 5%+CPI cap and its exemption list were re-enacted by SB 567 (operative April 1, 2024). They cover increases from March 15, 2019 (February 18, 2021 for mobilehomes) and expire January 1, 2030. The major updates in the 2026 landscape are:

• Rolling new-construction exemption: Buildings whose certificate of occupancy was issued in 2011 lost their 15-year new-construction exemption in 2026, on that certificate's 15th anniversary. Operators who relied on this exemption for buildings with certificates of occupancy 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, AB 1482 can apply, unless an exemption in §1947.12(d) applies, such as a certificate of occupancy issued within the previous 15 years. 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, once no tenant from the prior tenancy remains in lawful possession: the owner may then set the initial rent for the new tenancy free of the cap, and the cap applies to later increases. 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? Use the BLS CPI-U for your metro area. For an increase taking effect on or after August 1, take the April-to-April change ending that year; before August 1, the change ending the prior year (March-to-March where no April figure is published). Where BLS publishes no metro index, use the California CPI from the Department of Industrial Relations.

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? "Owner" includes a predecessor in interest, so a sale does not reset the cap for a sitting tenant. But the single-unit exemption depends on who owns the property: it applies only while the owner is not a REIT, a corporation, an LLC with a corporate member, or mobilehome park management, so a sale to one of those buyers puts it at risk. 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 sue for an injunction and the amount overcharged, plus attorney's fees at the court's discretion, and up to three times the overcharge if the owner acted willfully or with oppression, fraud or malice. The Attorney General and city or county attorneys can also enforce. Suits must be brought within three years. 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.