New rent Control

AB 1482 is a statewide act that has two main functions: it limits rent increases and removes the right of landlords to evict tenants without just cause. 

• Rent Increases: AB 1482 restricts the allowable annual rent increase to 5% plus a local cost-of-living adjustment of no more than 5%, for a maximum increase of 10%. The law is retroactive, calculating the starting rent from March of 2019. There is no maximum rent or limit on how much landlords can raise rents between one tenant and the next. 
• Eviction Protection: Landlords can only evict tenants for a number of legal reasons. This applies to tenants who have lived in the unit for more than one year.
  • “At fault” just causes for eviction include not paying rent, criminal activity in the rental unit, or breaching the lease contract. Landlords must give tenants a chance to fix lease violations. 
  • “No fault” just causes for eviction include the owner moving into the unit, converting the apartment to a condo, or renovating or demolishing the unit. Landlords must offer the tenant a “relocation fee” equal to one month’s rent in these cases. 

The act does not, however, enforce these rules. Tenants have to hire an attorney and sue their landlord if they believe their rights are being violated.

AB1482 will expire on January 1, 2030, unless legislators extend it. 

The new law covers all multi-family rental units the state of California, with some exceptions. 

• New buildings are exempt until they reach 15 years old (in keeping with Costa Hawkins), so currently, the law applies to buildings constructed before 2005. This is meant to encourage builders to build new rental housing without their income being limited by rent control, at least for the first 15 years. 
• Duplexes, where one unit is occupied by the owner, are exempt. 
• Single-family homes and condos are not subject to rent control unless they are owned by a corporation or real estate investment trust (REIT). 

In cities that have established rent control laws, AB1482 applies only to buildings that are not already covered by stricter local laws. In San Francisco, for example, buildings from before 1979 would be subject to the San Francisco Rent Ordinance, and buildings constructed between 1979 and 2005 would be covered by AB1482.