NextGen Coastal compliance manager reviewing California AB 1482 rent-cap calculations on a tablet at a Costa Mesa office desk

Guide · Updated April 2026

AB 1482, the way it actually works on the California coast.

The 5%+CPI rent cap, the conditional SFR exemption, the LLC ownership trap that voids it, and the just-cause termination rules, for owners who'd like to stop guessing.

The 2026 numbers

How much can you raise rent right now?

AB 1482's cap formula is the lesser of (a) 5% + the regional CPI or (b) 10%. The cap recalculates each August 1 based on the April CPI release for your metropolitan statistical area. Increases taking effect between August 1, 2025 and July 31, 2026 use the following caps for coastal California:

RegionCPIMax increase (Aug 2025 – July 2026)
Los Angeles–Long Beach–Anaheim
LA County, Orange County, parts of Inland Empire		3.0%8.0%
Riverside–San Bernardino–Ontario2.5%7.5%
San Diego–CarlsbadConfirm via BLSConfirm via BLS / CAA
Universal cap-10% (statutory ceiling)

Source: California Apartment Association & Apartment Association of Greater Los Angeles, May 2025 CPI updates. CPI figures recalculate August 1, 2026 based on the April 2026 BLS release. Always verify before issuing notice.

The most expensive misunderstanding

Yes, your SFR may be exempt. No, not automatically.

Single-family homes and condominiums are exempt from AB 1482, but only if both of these conditions are met:

Condition 1: Ownership structure

The property must not be owned by:

  • A real estate investment trust (REIT)
  • A corporation (C-corp or S-corp)
  • A limited liability company where any member is a corporation

The trap: a multi-tier LLC where one of the upper-level members is a C-corp voids the exemption, even if your operating LLC looks individual on paper.

Condition 2: Statutory notice in the lease

For tenancies starting or renewed on/after July 1, 2020, the lease must include the specific Civil Code §1947.12(d)(5)/§1946.2(e)(8) exemption language.

If the notice is missing, the exemption doesn't apply, even when the ownership structure would qualify. The property is treated as fully covered until a new lease (or renewal) with proper notice replaces the old one.

The compounding mistake we see most often

Sophisticated owners set up an LLC for asset protection, never check the LLC's member structure against the AB 1482 exemption rules, and assume the SFR exemption applies because "it's a single-family home." Then they hand the property to a property manager who issues a 9% rent increase the following August. The tenant pushes back, attorney involvement starts, and the owner discovers the exemption was voided years ago by an LLC structure their CPA recommended for a different reason. Net cost typically: refund of over-cap rent, attorney fees, and a frosty relationship with a tenant who would otherwise have renewed quietly.

The other half of AB 1482

Just cause termination, what changed after 12 months.

AB 1482 is two laws bolted together. The rent cap (§1947.12) and the just-cause termination requirement (§1946.2). Both apply to the same set of covered properties. Once a tenant has been in possession 12 continuous months, you can only terminate for one of the enumerated causes:

At-fault just causes

No relocation assistance owed.

  • Default in payment of rent
  • Material breach of lease
  • Maintaining a nuisance
  • Committing waste
  • Criminal activity on or near the premises
  • Refusing to renew a similar lease
  • Tenant refusing access for lawful purpose

No-fault just causes

Relocation assistance owed, typically one month's rent or final-month rent waiver.

  • Owner or qualifying family-member move-in
  • Withdrawal from rental market (Ellis Act)
  • Compliance with government order requiring vacancy
  • Substantial remodel making property uninhabitable for 30+ days

Coastal CA local overlays

Where local rules override AB 1482.

AB 1482 sets a statewide floor. Cities are free to enact stricter local rent control. Within our coastal California service area:

CityLocal ruleCap (covered units)
Los Angeles (city)Rent Stabilization Ordinance (RSO)~3–4% (CPI-driven, lower than AB 1482)
Santa MonicaSanta Monica Rent Control OrdinanceMaximum Allowable Rent Increase (MAS), typically < AB 1482
West HollywoodRSOAnnual cap set by city
Beverly HillsRent StabilizationAnnual cap set by city
Orange County citiesNo local rent controlAB 1482 governs (8.0%)
San Diego County citiesNo local rent controlAB 1482 governs (San Diego CPI + 5%)
Santa Barbara / Ventura coastal citiesNo local rent controlAB 1482 governs

The good news for most NextGen Coastal owners: most of our 37-city footprint (Orange, San Diego, Ventura, Santa Barbara coastal cities) operates under AB 1482's statewide rules without an additional local overlay. LA County coastal cities (Santa Monica, Manhattan Beach, Hermosa, Redondo, etc.) are mixed, Santa Monica has its own ordinance, the South Bay beach cities mostly do not.

Frequently asked

AB 1482 FAQ for coastal California owners.

What is the maximum rent increase under AB 1482 in 2026? +
AB 1482 caps annual rent increases at the lesser of (a) 5% plus the regional CPI, or (b) 10%. For increases taking effect August 1, 2025 through July 31, 2026, the cap is 8.0% for the Los Angeles–Long Beach–Anaheim metro (which covers LA County, Orange County, and parts of the Inland Empire) and 7.5% for Riverside / San Bernardino counties. San Diego County uses the San Diego–Carlsbad CPI. The cap recalculates each August 1 based on the April CPI release. Always verify the current regional CPI through the California Apartment Association or BLS before issuing a notice.
Is my single-family home exempt from AB 1482? +
Possibly, but the exemption is conditional, and the most common landlord mistake is assuming SFRs are automatically exempt. A single-family home or condominium is exempt only if both of the following are true: (1) the property is not owned by a real estate investment trust (REIT), a corporation, or a limited liability company in which at least one member is a corporation, AND (2) you provided the tenant with the specific statutory notice (in the lease for tenancies starting or renewed on/after July 1, 2020). Miss either condition and the exemption doesn't apply.
I own my SFR through an LLC, am I exempt or not? +
Depends entirely on whether any member of your LLC is a corporation. Single-member LLCs where the member is an individual (a natural person) qualify for the exemption. Multi-member LLCs where every member is an individual qualify. Any LLC with at least one corporate member loses the exemption. If your asset-protection structure includes a parent LLC owning a subsidiary LLC, or any C-corp / S-corp in the ownership chain, the SFR exemption is voided and your property is fully subject to AB 1482's 5%+CPI cap and just-cause termination rules. This is the single most expensive AB 1482 trap for sophisticated owners.
What's the required AB 1482 exemption notice language? +
The Civil Code requires very specific language. Approximate paraphrase: "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. This property meets the requirements of Sections 1947.12(d)(5) and 1946.2(e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation." For tenancies started or renewed on/after July 1, 2020, this language must appear in the lease itself. Missing or incomplete notice = no exemption, even if the property would otherwise qualify.
What other properties are exempt from AB 1482? +
Beyond qualifying SFRs/condos: (1) housing built within the last 15 years (rolling, a 2010-built property became subject in 2025), (2) housing provided by nonprofit hospitals, religious institutions, extended-care or adult-residential facilities, (3) owner-occupied properties where the tenant shares bathroom or kitchen with the owner who lives there as principal residence, (4) properties already subject to a more-restrictive local rent ordinance (e.g., LA City RSO, Santa Monica, West Hollywood, Berkeley, San Francisco, local rules govern in that case).
How many rent increases can I do per year? +
No more than two increases in any 12-month period. The combined total of both increases cannot exceed the annual cap (5% + CPI, max 10%). So you can split a single annual cap-sized increase into two stages, but you can't use the two-increase rule to exceed the cap.
Does AB 1482 only limit rent, what about evictions? +
AB 1482 also imposes "just cause" termination requirements (Civil Code §1946.2). After 12 continuous months of tenancy, you can only terminate for one of the enumerated just causes: at-fault (nonpayment, breach, nuisance, criminal activity, etc.) or no-fault (owner move-in, withdrawal from rental market under Ellis Act, government order, substantial remodel). No-fault terminations require relocation assistance, typically one month's rent or rent waiver for the final month. For tenancies under 12 months, just cause does not yet apply. Same SFR/LLC exemption logic governs whether just cause applies to your property.
My city has its own rent control. Which rules apply? +
The more tenant-protective rules. AB 1482 sets a statewide floor; cities are free to adopt stricter local ordinances. Coastal California examples: Los Angeles (Rent Stabilization Ordinance, ~3-4% annual cap on covered units), Santa Monica (Rent Control Ordinance, MAS calculation), West Hollywood (RSO), Beverly Hills (rent stabilization with annual cap), San Diego (no city rent control beyond AB 1482). If your covered property is in a local-rent-control city, the local ordinance governs the cap and termination rules, AB 1482 is the floor.
I missed providing the AB 1482 notice. Can I add it now? +
Yes, you can serve the required notice prospectively, but it doesn't apply retroactively. For tenancies that started without the notice in the lease, the property is subject to AB 1482 for any rent increases or terminations until the tenancy is renewed (with the proper notice in the new lease) or the tenant turns over. Going forward, ensure every new lease, every renewal, and every month-to-month conversion includes the proper exemption language if you intend to claim the SFR exemption.
How does NextGen Coastal handle AB 1482 compliance? +
Every lease we draft includes the proper exemption notice language (if the property qualifies and the owner intends to claim the exemption). For non-exempt properties, our rent-increase workflow auto-checks the current regional CPI and caps proposed increases at the legal limit. Just-cause termination notices are drafted by California-licensed legal counsel through our partner network for any owner-initiated termination. None of this is a separate fee, it's included in our management percentage. See SFR management →

Sources & verification

  • California Civil Code §§1947.12, 1946.2 (Tenant Protection Act of 2019)
  • California Apartment Association, AB 1482 reference (caanet.org/topics/ab-1482/)
  • Apartment Association of Greater Los Angeles, 2025 CPI Update bulletin
  • Apartment Association of Orange County, CPI Update for 2025-26
  • Apartment Association, Southern California Cities, California Rent Caps 2025-26 update (May 19, 2025)
  • U.S. Bureau of Labor Statistics, CPI series for LA-Long Beach-Anaheim, Riverside-San Bernardino-Ontario, San Diego-Carlsbad
  • Berkeley Rent Board, AB 1482 reference

Last verified 2026-04-28. The CPI-driven cap recalculates August 1 each year. This is reference content, not legal advice. Specific situations require qualified counsel.

We handle AB 1482 compliance on every managed property.

Lease language, exemption-eligibility analysis, CPI-checked rent-increase notices, just-cause termination workflow with California-licensed counsel, included in our management percentage. No separate compliance fee.

See SFR Management Get a Property Analysis