California AB 1482 Rent Cap Explained: What Landlords Can and Cannot Raise
California's Assembly Bill 1482, the Tenant Protection Act of 2019, limits annual rent increases on most residential rentals to 5% plus local CPI, with a hard 10% cap. The rule lives at Cal. Civ. Code Section 1947.12. Violating it can cost a landlord three times the illegal overcharge plus the tenant's attorney fees. This post explains the formula, exemptions, notice period scaling, and common mistakes that turn a routine rent raise into a lawsuit.
The 5% + CPI formula (max 10%)
Cal. Civ. Code 1947.12(a)(1) sets the annual cap at the lower of:
- 5% + local CPI for the region, or
- 10% flat.
"Local CPI" is the percentage change in the Consumer Price Index for All Urban Consumers for the region where the property sits, published by the California Department of Industrial Relations. The regions are San Francisco Bay Area, Los Angeles-Long Beach-Anaheim, Riverside-San Bernardino-Ontario, and an "all other" California category.
The 12-month period for the calculation runs from April 1 of the prior year to March 31 of the reference year.
Two rent increases in the same 12 months count together. If a landlord raises rent 4% in January and wants another 4% in August, the total is 8%. If 5% + CPI for the region is 8.5%, the second raise is fine. If 5% + CPI is 7.5%, the second raise has to be capped at 3.5%.
Worked examples with real numbers
Example 1. LA apartment, $3,000 rent, 5% + CPI = 8.2% in 2026. Maximum new rent: $3,000 x 1.082 = $3,246. Increase of $246/month.
Example 2. Bay Area condo, $4,500 rent, 5% + CPI = 9.1%. Maximum new rent: $4,500 x 1.091 = $4,909.50. Increase of $409.50/month.
Example 3. LA apartment, $3,000 rent, 5% + CPI = 11.5% (hypothetical high-CPI year). The 10% cap overrides. Maximum new rent: $3,000 x 1.10 = $3,300. Increase of $300/month.
Example 4. Two increases in 12 months, $2,500 rent, 5% + CPI = 8%. January raise to $2,600 (4%). The landlord cannot raise more than another 3.85% (~$100) by December without exceeding the 8% total cap.
The California rent increase calculator runs these numbers automatically using the current DIR CPI values and flags any proposed increase that exceeds the cap.
Which properties are covered
AB 1482 applies to most residential tenancies in California, including:
- Multi-family apartment buildings.
- Condos and co-ops held by corporations or LLCs (unless exempt, see below).
- Mobile home parks.
- Single-family rentals owned by corporations, REITs, or institutional investors.
The cap also covers "just cause" termination rules, meaning a covered landlord cannot terminate a tenancy without one of the enumerated reasons in Cal. Civ. Code 1946.2.
The exemption list
AB 1482 does not apply to:
- Single family homes and condos IF (a) the landlord is a natural person or an LLC whose members are all natural persons (post-AB 414 expansion), AND (b) the tenant has received written notice of the exemption with the statutory language in Cal. Civ. Code 1947.12(d)(5).
- New construction, buildings that received a certificate of occupancy within the last 15 years. This is a rolling exemption, so a building built in 2011 becomes covered in 2026, 2012 becomes covered in 2027, and so on.
- Deed-restricted affordable housing where rents are already capped under a regulatory agreement.
- Owner-occupied duplexes where the owner occupies one unit as primary residence throughout the tenancy.
- Hotels, motels, and tourist accommodations.
- Dormitories owned by colleges or universities.
The single-family/condo exemption only works if the written notice is actually delivered. A landlord who forgets the notice is subject to the cap even if the property would otherwise be exempt.
30 vs 90-day notice period
Separate from the cap itself, Cal. Civ. Code 827(b) sets the advance notice requirement for rent increases:
- 30 days if the increase is 10% or less of the lowest rent charged in the prior 12 months.
- 90 days if the increase is more than 10%.
For properties covered by AB 1482, the increase can never exceed 10% in a 12-month period, so the 30-day notice is nearly always sufficient. The 90-day rule matters for exempt properties where a landlord might raise rent 15% or more in one step.
The notice must be in writing and served by personal delivery, certified mail, or substituted service with first-class mail follow-up. Email is not valid unless the lease explicitly authorizes it.
What happens if a landlord violates the cap
Cal. Civ. Code 1947.12(g) gives the tenant a private right of action for any rent collected in excess of the cap. The tenant can recover:
- The illegal overcharge (the amount above the cap).
- Three times the illegal overcharge as damages if the violation is willful.
- Reasonable attorney fees and costs.
The lookback period for recovering overcharges is 3 years under the general statute of limitations.
Worked example. Landlord in LA raises rent from $3,000 to $3,400 (13.3%) in 2026 when the cap was 8.2%. Legal max was $3,246. Illegal overcharge is $154/month. Tenant pays for 12 months before realizing.
- Overcharge: $154 x 12 = $1,848.
- 3x damages: $5,544.
- Attorney fees: say $4,000 for a simple case.
- Total landlord exposure: ~$11,000+ for a misread cap.
Five common landlord mistakes
- Using last year's CPI. The CPI number updates annually in April. Using the prior year's figure can under- or over-calculate the cap.
- Forgetting the two-increase-in-12-months rule. A 5% January raise plus a 5% September raise totals 10%, which may or may not exceed the cap depending on CPI.
- Assuming the single-family exemption applies without serving the notice. The exemption only works if the written notice with the 1947.12(d)(5) language has been delivered to the tenant. No notice, no exemption.
- Serving by email when the lease does not authorize it. Cal. Civ. Code 827 requires written service by personal delivery, certified mail, or substituted service. Email alone is not valid.
- Using the 30-day notice for an above-10% increase. For exempt properties where an increase can legally exceed 10%, the 90-day notice is mandatory. A 30-day notice voids the increase.
Where to get a compliant notice
A compliant California rent increase notice needs to include the current rent, the new rent, the effective date at least 30 or 90 days out, and the landlord's signature. For covered properties it should also reference the 1947.12 cap calculation. For exempt single-family/condo units, it must include or be preceded by the 1947.12(d)(5) exemption notice.
LeaseKit's California rent increase notice applies the 5% + CPI calculation automatically, picks the 30 or 90-day notice period based on the increase, and includes the exemption notice language for single-family units.
This post is informational. It is not legal advice. AB 1482 and the CPI values are updated annually. For contested cases, consult a California-licensed attorney.