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AB 1482 Exemptions, Rent Cap and Notice Rules for California Landlords

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

A California rental is exempt from AB 1482 only if it fits one of the exemptions written into the law, such as housing with a certificate of occupancy issued within the last 15 years, an owner-occupied duplex, or a single-family home or condo whose owner is not a corporation, a REIT or an LLC with a corporate member and that has given the tenant the required written exemption notice. For covered units, rent increases that take effect from August 1, 2026 through July 31, 2027 are capped at 8.8% in Alameda, Contra Costa, Marin, San Francisco and San Mateo counties and 8.6% in the rest of Northern California, according to the Attorney General’s published chart.

AB 1482, the Tenant Protection Act of 2019, lives in two Civil Code sections: section 1947.12 (the rent cap) and section 1946.2 (just cause for ending a tenancy). The current version of the rent cap section was rewritten by SB 567 (Stats. 2023, ch. 290) and became operative April 1, 2024, and both sections are set to repeal on January 1, 2030. This page looks at the law from the owner’s and buyer’s side: which units are covered, how to keep an exemption valid, what the 2026 cap is and how it is calculated, and what you take on when you buy a rental that is already occupied.

Which rentals AB 1482 covers

Start from the assumption that a residential rental is covered. The rent cap applies to every increase on a covered unit, and the just cause rules apply once a tenant has lawfully occupied the unit for 12 months. The Attorney General also notes that a tenancy paid with a Section 8 voucher in market-rate housing is not exempt.

The two sections have similar but not identical exemption lists, so check each one separately.

Type of property	Rent cap (Civ. Code 1947.12)	Just cause (Civ. Code 1946.2)	Conditions
Newer construction	Exempt	Exempt	Certificate of occupancy issued within the previous 15 years; does not apply to mobilehomes
Single-family home or condo that can be sold separately	Exempt	Exempt	Owner is not a REIT, a corporation or an LLC with at least one corporate member, and the tenant received the statutory exemption notice
Owner-occupied duplex	Exempt	Exempt	Owner lived in one unit when the tenancy began and still does; neither unit is an ADU or JADU
Owner-occupied house renting no more than two units or bedrooms	Not on the rent cap list	Exempt	Includes ADUs and JADUs; the rent cap still applies unless another exemption fits
Room sharing a kitchen or bath with an owner who lives there	Not on the rent cap list	Exempt	Owner must live in the home
Deed-restricted or subsidized affordable housing	Exempt	Exempt	Restricted for very low, low or moderate income households, or under a qualifying subsidy
Units under a stricter local rent ordinance	Exempt	Local ordinance controls if it qualifies	The local limit must be lower than the state cap
College or K-12 dormitories	Exempt	Exempt	Owned and operated by the institution

The 15-year exemption moves forward every year

The new-construction exemption is not tied to a fixed date. It covers housing that received a certificate of occupancy within the previous 15 years, so each building ages into coverage on the 15th anniversary of its certificate.

A building with a certificate of occupancy dated March 1, 2012, for example, would leave the exemption on March 1, 2027, and later increases would fall under the cap. Owners and buyers should get the actual certificate from the city or county building department rather than relying on a listing’s “year built,” which may reflect a different event.

The single-family and condo exemption: owner type and notice

This is the exemption most small owners rely on, and it is also the one most often lost. It requires three things at once:

A unit that can be sold separately from any other dwelling unit, such as a detached house on its own parcel or a condominium.
An eligible owner. The exemption is not available if the owner is a real estate investment trust, a corporation, or a limited liability company in which at least one member is a corporation.
Written notice to the tenant. The statute prescribes the wording. It begins: “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,” and goes on to state that the owner is not a REIT, a corporation or an LLC with a corporate member.

Timing matters. For a tenancy that began or was renewed on or after July 1, 2020, the notice must be in the rental agreement itself. For tenancies that existed before that date, the notice could be given separately. Use the statutory wording exactly; a paraphrased version invites a dispute.

Be careful with a house that has an ADU on the same lot. The exemption depends on the property being separately sellable from other dwelling units, and a house usually cannot be sold apart from its ADU, so get legal advice before relying on the exemption there. The owner test also follows the owner: if you buy a house through an LLC with a corporate member, the exemption is gone even if the seller qualified. Our comparison of holding rental property in an LLC or in your own name covers the other trade-offs.

How much can a landlord raise rent in California in 2026?

For a covered unit, the annual limit is 5% plus the percentage change in the cost of living, or 10%, whichever is lower. The increase is measured against the lowest gross rent charged for the unit at any time in the prior 12 months, and the owner may raise rent no more than twice in any 12-month period.

The cost-of-living figure comes from the April Consumer Price Index for All Urban Consumers. Section 1947.12(g) names four metro indexes, including San Francisco-Oakland-Hayward, which covers Alameda, Contra Costa, Marin, San Francisco and San Mateo counties. Everywhere else uses the statewide California index published by the Department of Industrial Relations. Increases that take effect on or after August 1 use the change from April of the prior year to April of the current year, rounded to the nearest tenth of a percent.

Region	Counties in Diamond’s area	Increases starting 8/1/2025 to 7/31/2026	Increases starting 8/1/2026 to 7/31/2027
San Francisco area (BLS metro index)	Alameda, Contra Costa, Marin, San Francisco, San Mateo	6.3%	8.8%
All other counties (California index)	Sonoma, Napa, Solano, Santa Clara, Sacramento, Placer, Yolo, El Dorado, Santa Cruz, Monterey and the rest	7.7%	8.6%

Here is where the current figures come from. The Bureau of Labor Statistics reports that the San Francisco area index rose 3.8% in the 12 months ending April 2026, and 5% plus 3.8% is 8.8%. The Department of Industrial Relations lists the California index at 352.063 in April 2025 and 364.746 in April 2026, a 3.6% change, and 5% plus 3.6% is 8.6%. Both match the Attorney General’s chart.

A simple example: if the lowest rent charged on a Santa Rosa unit in the past 12 months was $3,000, the most it can rise to for an increase starting on or after August 1, 2026 is $3,258 (8.6%). The same unit in San Rafael could go to $3,264 (8.8%). When a unit turns over and no prior tenant remains in lawful possession, the owner may set the new starting rent, and the cap applies to increases after that.

Charging more than the law allows is costly. A tenant can recover the excess rent, up to three times the excess if the owner acted willfully, plus possible attorney’s fees, and the Attorney General, city attorneys and county counsel can also sue. The limitations period is three years.

Notice periods for a rent increase

AB 1482 sends owners to Civil Code section 827 for notice. On a month-to-month tenancy, the increase must be in writing and delivered personally or by mail under the Code of Civil Procedure.

30 days’ notice for an increase of 10% or less, counting it together with any other increases in the prior 12 months.
90 days’ notice for an increase of more than 10% on the same 12-month basis. On a covered unit this should not arise, because the cap stays below 10%; it matters for exempt units.

A lease, regulatory agreement or local ordinance that requires longer notice controls.

Just cause: what owners need to know

Once a tenant has occupied the unit for 12 months, a covered tenancy can end only for a just cause stated in the written notice. Causes are split into at-fault reasons, such as nonpayment, a material lease breach after notice to correct, nuisance or criminal activity, and no-fault reasons, such as owner move-in, withdrawal from the rental market, a government order, or demolition or a substantial remodel.

Owner move-in is limited to the owner and the owner’s spouse, domestic partner, children, grandchildren, parents or grandparents. The notice must name the person moving in. That person must move in within 90 days after the tenant leaves and live there for at least 12 continuous months, or the owner must offer the unit back at the same rent and reimburse reasonable moving costs.
Substantial remodel means permitted work, or hazardous-material abatement, that requires the tenant to be out for at least 30 consecutive days. Cosmetic work does not qualify, and the notice must describe the work and include the permit or other required documentation.
Relocation help. For a no-fault termination, the owner must either pay one month’s rent within 15 calendar days of serving the notice or waive the final month’s rent in writing. A notice that does not strictly comply is void.

For the practical side of a no-fault termination, see our guides to just cause rules for landlords and negotiated move-out agreements.

Local rules that sit on top of AB 1482

A local just cause ordinance adopted on or before September 1, 2019 controls instead of section 1946.2, and a later one controls only if it is more protective and the local government made the required finding. Local rent control that limits increases below the state cap also takes the unit out of section 1947.12.

In unincorporated Sonoma County, Ordinance 6496, passed September 17, 2024, adds to the state rules for covered units. It starts just cause protection when the tenancy begins instead of after 12 months, raises no-fault relocation to the greater of HUD Fair Market Rent or the actual monthly rent, and removes the state exemption for deed-restricted affordable housing. It also requires landlords to file a copy of termination notices served on or after January 1, 2025 with the county portal within three days of service, whether or not the state law covers the tenancy. It does not set a rent cap and does not change the single-family exemption.

Several Bay Area cities run their own rent and eviction programs. Before buying there, read our pages on East Bay rent stabilization by city, Oakland’s rent rules, Berkeley rent stabilization for owners and San Jose’s rent ordinance.

What a buyer inherits

When you buy an occupied rental, the tenancy, its rent history and any mistakes the seller made come with it. The seller’s exemption does not transfer automatically if you are a different kind of owner. Ask for these items during your contingency period:

A rent ledger for each unit showing every increase in the past 12 months and the lowest rent charged, so you can calculate the legal maximum.
Every lease and addendum, to confirm whether the exemption notice appears in the rental agreement and in the statutory words.
The certificate of occupancy date, if the seller claims the 15-year exemption.
The seller’s ownership entity, and a decision on how you will take title, since your own entity decides the single-family exemption going forward.
Tenant estoppel certificates confirming rent, deposits and lease terms; see our guide to estoppel certificates.
Any pending notices, including termination notices and, in unincorporated Sonoma County, the county portal filings.

If the seller never gave a valid exemption notice, assume the unit has been covered and that any increases above the cap may be challenged. Talk to a landlord-tenant attorney about whether and when you can give the notice yourself, for example at a lease renewal. If you plan to live in the home, owner move-in is possible only within the just cause rules above. Our guides to buying property with tenants in place and rental property analysis walk through the numbers, and our Sonoma investment property page covers that market.

Diamond manages some rentals itself and may refer you to partners we work with, such as property managers; you’re free to choose any provider. Our guide to choosing a property manager in Sonoma County covers fees, licensing and what to ask. Tenants looking at the other side of these rules can read our renter’s checklist.

Questions people ask

Are single-family homes exempt from AB 1482?

Often, but not automatically. A separately sellable house or condo is exempt only if the owner is not a corporation, a REIT or an LLC with a corporate member, and the tenant received the statutory exemption notice. For tenancies started or renewed since July 1, 2020, that notice must be in the lease.

What is the maximum rent increase in California in 2026?

For covered units, increases taking effect from August 1, 2026 through July 31, 2027 are capped at 8.8% in Alameda, Contra Costa, Marin, San Francisco and San Mateo counties and 8.6% in other Northern California counties. Local rent control can set a lower limit.

How is the AB 1482 cap calculated?

It is 5% plus the April-to-April change in the applicable consumer price index, capped at 10%, rounded to the nearest tenth of a percent. The increase is measured from the lowest rent charged in the prior 12 months.

Is an owner-occupied duplex exempt?

Yes, if the owner lived in one unit when the tenant’s tenancy began and still lives there, and neither unit is an ADU or JADU. If the owner moves out, the exemption ends.

How much notice is required for a rent increase in California?

At least 30 days for an increase of 10% or less in a 12-month period and at least 90 days for more than 10%, delivered in writing. A lease or local ordinance can require more.

Can I raise the rent to market when a tenant moves out?

Under state law, yes. If no prior tenant remains in lawful possession, the owner can set the new starting rent, and the cap applies to later increases. Some local ordinances limit this, so check the city’s rules.

When does AB 1482 expire?

Both the rent cap and the just cause sections are set to repeal on January 1, 2030 unless the Legislature extends them.

Does AB 1482 apply to newer buildings?

Not for 15 years after the certificate of occupancy is issued. After that anniversary, the building is covered unless another exemption applies.

If you are weighing a rental purchase or a rent change and want the numbers checked against the rent roll before you commit, our investment property team can help you review the leases, the exemption status and the market.

This is general information, not legal advice; talk to a California landlord-tenant attorney about your situation.

Sources & notes

Last reviewed October 2026 by Matthew Martinez.