Ab1482

AB 1482 — Tenant Protection Act of 2019 ## Overview Assembly Bill 1482 (the Tenant Protection Act of 2019) established the first statewide rent cap and just cause eviction requirements in California, effective January 1, 2020. For California real estate brokers — especially those practicing in property management, residential leasing, or investment property sales — a thorough understanding of AB 1482 is essential. Violations expose landlords to significant liability, and incorrect advice to investor clients can result in DRE disciplinary action. --- ## The Rent Cap Formula in Detail AB 1482 limits rent increases to the lesser of: - 5% + the local Consumer Price Index (CPI), measured by the All-Items CPI for the applicable California region, using the most recent April-to-April percentage change, OR - 10% absolute maximum ### How the formula works in practice: - If local CPI = 2.5%, the maximum increase = 5% + 2.5% = 7.5% - If local CPI = 6%, the maximum increase = 5% + 6% = 11% → but 10% is the ceiling, so maximum = 10% - If local CPI = 0.5%, the maximum increase = 5% + 0.5% = 5.5% ### Anti-banking provision: Landlords cannot "bank" unused increase capacity. If a landlord increases rent by only 2% in year one when the cap allowed 8%, the unused 6% cannot be rolled forward to the next year. ### Multiple increases in 12 months: If a landlord makes multiple rent increases within a 12-month rolling period, the total cannot exceed the applicable cap. The 12-month window runs from the date of the most recent increase. --- ## Properties Covered by AB 1482 The rent cap and just cause eviction requirements…