5% + CPI, capped at 10%. The AB 1482 formula every CA owner needs to know.

AB 1482 (the Tenant Protection Act of 2019) is California's statewide framework for rent caps and just-cause eviction. Coverage is broad but not universal. The exemption analysis is unit-by-unit. Misapplication creates owner exposure that doesn't go away with a manager change.

The two operative parts of AB 1482

1. The rent cap

Annual rent increases on covered units are limited to 5% plus regional CPI (Consumer Price Index), with an absolute ceiling of 10% in any 12-month period. The CPI component is the local figure for the metropolitan statistical area the unit sits in — not statewide CPI. The figure changes annually as new CPI prints come out. Verify the current cap percentage applicable to your unit at leginfo.legislature.ca.gov or via the official California-published guidance before any renewal.

2. The just-cause framework

For tenants in continuous occupancy of 12 months or more, AB 1482 limits terminations of tenancy to statutory "just cause" categories — both at-fault (lease violations, nuisance, etc.) and no-fault (owner move-in, withdrawal from rental market, substantial remodel, government order). No-fault terminations require relocation assistance, typically one month's rent. SB 567 (2024) tightened several of these categories, particularly substantial-remodel and owner move-in.

Who's exempt

Most single-family rentals (when not owned by a corporate entity or REIT, and with a written exemption notice in the lease)
Condominium units (with the same conditions)
Newer construction — units built within the most recent 15 years on a rolling basis (verify the specific year cutoff that applies to your unit)
Owner-occupied properties with limited rental units (the duplex exemption with conditions)
Certain affordable housing and government-administered units

The exemption analysis is fact-specific. A unit you assume is exempt may not be once you check the corporate-ownership and notice-language requirements.

Local overlays

Several California cities layer their own rent stabilization ordinances on top of AB 1482 with stricter caps. Examples include Santa Ana's RSO, Long Beach's Rental Housing Ordinance, and the long-established ordinances in LA, SF, Oakland, Berkeley, Santa Monica, West Hollywood, and others. When a local ordinance exists and conflicts with AB 1482, the stricter rule generally applies. See our rent control cities list.

What this means during a property manager switch

AB 1482 coverage and rent history travel with the property, not the manager. NGC's records audit during a switch confirms unit-by-unit coverage status, rent-increase history, just-cause notices issued during the prior firm's tenure, and any exposure. If anything is misclassified or improperly noticed, you see it in writing before the cutover.