California Governor Gavin Newsom signed Assembly Bill 1482 (AB 1482) that caps annual rent increases in California. The cap is 5% plus the Consumer Price Index (CPI) up to a maximum 10% a year. And AB 1482 requires landlords to have “just cause” in order to evict tenants.
California Rent Control AB 1482 Provisions
Landlord: How much can I raise the rent per year?
- Maximum rental increase is 5% plus the change in cost of living. This cap is 5% plus the Consumer Price Index (CPI), for all rents increases occurring on or after March 15, 2019
- If the landlord increases the rent MORE than the cap between March 15, 2019 and January 1, 2020, then the rent on January 1, 2020 must be lowered to what the rent would have been on March 15, 2019 plus 5% plus CPI.
- NOTE: The rent collected in 2019 can be kept, but if the landlord increased the rent on or after March 15, 2019 then it must be lowered effective January 1, 2020 to what it would have been on March 15, 2019 plus 5% plus CPI.
- Landlords who increased the rent LESS than the 5% plus CPI between March 15, 2019 to January 1, 2020 can increase the rent twice within 12 months of March 15, 2019. However, the increase cannot be more than the Cap, which is 5% plus CPI.
Landlord: When can I raise the rent more than that cap?
- As of now, the new law permits the landlord to raise the rent to market once a tenant vacates the unit. But, once a new renter is placed in the unit, any future rent increases are subject to the rent cap of 5% plus CPI.
- If the unit is currently vacant, the landlord can determine the initial rent for the new tenant. However, once the new renter is in the unit, any future rent increases are subject to the rent cap of 5% plus CPI.
Landlord: Can I evict tenants?
- Beginning January 1, 2020, Assembly Bill 1482 requires landlords to have “just cause” in order to evict a tenant who has occupied a unit for at least 12 months, or up to 24 months when an adult tenant adds onto a lease (i.e. changes in roommates);
- Landlord will still be able to evict for at-fault reasons;
- Landlords can also evict for no-fault reasons;
- Landlords are required to provide relocation assistance in the form of one 1-month’s rent or rent waiver for no-fault evictions within fifteen (15) calendar days of serving the notice. And the landlord should notify the tenant(s) of the relocation assistance;
- AB 1482 does not amend Costa Hawkins, so local government cannot apply a local rent cap to units not covered by Costa Hawkins.
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This content is general information intended as a public resource and not guaranteed to be correct, up-to-date or complete. CREDITS: Dennis P. Block & Associates presentation and CA Residential Rental Housing Association