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AB 1482 California Rent Control and Exemptions

The fact is, California is a rent control state, no matter which county you are in. Assembly Bill 1482 Tenant Protection Act of 2019 (AB 1482) was implemented on Oct 8, 2019.
This article will explain:
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Who needs to pay attention to

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What is the state rent cap

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Who is exempt

Just to remind you that this is not legal advice. This is only to make you aware of the bill and something you may want to contact a lawyer for further information.
Know that if your local county or city ordinances are more restrictive than the state law, then local law overrides the state law.

Who does this apply to?

AB 1482 applies if:
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You have 2 or more units, including ADUs, and they are over 15 years of age

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You rent out 3 or more rooms in your home long term
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Your properties are owned by a corporation and are more than 15 years of age

What is the rent cap?

AB 1482 prohibits a landlord from raising the rent more than 5% + the change in the cost of living, or 10% whichever is lower, per year. Currently, it is January 2023, and the change in the cost of living is 7.3%, so the rent cap is 10% since this is lower than 12.3%.

“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (c)(5) and 1946.2 (e)(7) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of

the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

Who is exempt?

Now let’s dive into who is exempt. The list of properties that are exempt from AB 1482 is extensive. It may be surprising that the majority of homes are exempt:

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All single-family rental homes that are owned by an individual, as long as it does not have a second unit on the property, including ADUs.
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LLCs, as long as a corporation is not an owner of the LLC or part owner of the LLC.
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If a duplex or single-family residence with an ADU is owner-occupied with the second unit being a rental
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Any property, no matter the unit count or ownership, that has been issued a Certificate of Occupancy in the last 15 years. Meaning, any property that was built in the last 15 years is exempt from AB 1482.

If you would like to read the bill in its entirety, you may go to this link:

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB1482

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