Assembly Bill 1482, the Tenant Protection Act of 2019, capped annual rent increases at 5% plus local CPI (maximum 10%) for covered properties statewide. But not every rental property in California falls under AB 1482. The exemptions are specific, and failing to qualify when you think you do exposes landlords to retroactive rent rollbacks, penalties, and wrongful eviction claims. At BH Real Estate Law in Los Angeles, we counsel property owners through the precise requirements for each exemption so there is no ambiguity in your compliance posture.
Key Takeaway: AB 1482 exempts single-family homes and condominiums from both rent caps and just cause eviction requirements — but only if the owner provides a specific written notice to the tenant under Civil Code § 1946.2(e)(8)(B)(i). Without that notice, the exemption does not apply regardless of property type. Properties built within the last 15 years are also exempt, with the rolling window recalculated annually.
Which Properties Are Exempt from AB 1482 Rent Caps?
AB 1482 (codified at Civil Code §§ 1946.2 and 1947.12) carves out several property categories from its rent cap and just cause eviction protections. The exemptions are not automatic — most require affirmative steps by the landlord.
Single-family homes and condominiums are exempt if two conditions are met. First, the owner must not be a corporation, REIT, or LLC in which at least one member is a corporation. The owner must be a natural person, a trust where all beneficiaries are natural persons, or a limited liability company where all members are natural persons. Second, the owner must provide the tenant with a written notice stating the property is exempt from AB 1482, using the specific language required by Civil Code § 1946.2(e)(8)(B)(i).
The written notice requirement catches landlords off guard. If you own a single-family home in Pasadena free and clear as an individual, but you never delivered the exemption notice, your property is treated as covered by AB 1482. That means your tenant has just cause eviction protections and your rent increases were capped retroactively to January 1, 2020. In our experience representing landlords across Los Angeles County, roughly 40% of individual owners who believe they are exempt have never actually provided the notice.
New construction receives a rolling 15-year exemption. A property with a certificate of occupancy dated after the current year minus 15 is exempt. For 2026, that means any property with a certificate of occupancy issued after January 1, 2011 qualifies. This window rolls forward each year — a building that was exempt in 2025 may lose its exemption in 2026 if it crosses the 15-year threshold.
Owner-occupied duplexes are exempt as long as the owner continuously resides in one of the units. If the owner moves out and rents both units, the exemption immediately expires.
| Property Type | Exempt from Rent Cap? | Exempt from Just Cause? | Notice Required? |
|---|---|---|---|
| Single-family home (individual owner) | Yes | Yes | Yes — written notice per CC § 1946.2(e)(8)(B)(i) |
| Condominium (individual owner) | Yes | Yes | Yes — written notice per CC § 1946.2(e)(8)(B)(i) |
| SFH owned by LLC (all natural person members) | Yes | Yes | Yes — written notice required |
| SFH owned by corporation or REIT | No | No | N/A — covered by AB 1482 |
| New construction (<15 years old) | Yes | Yes | No — automatic based on certificate of occupancy |
| Owner-occupied duplex | Yes | Yes | No — but owner must continuously reside in one unit |
| Accessory dwelling unit (ADU) | Depends | Depends | Depends on ownership structure and local rules |
| Multifamily apartment (3+ units, 15+ years) | No | No | N/A — fully covered |
How Does the AB 1482 Exemption Notice Work?
The notice is the single most important compliance step for owners of single-family homes and condominiums. Under Civil Code § 1946.2(e)(8)(B)(i), the notice must be provided in writing and must include the following statement, or substantially similar language:
“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 new tenancies, include this notice in the lease. For existing tenancies that began before AB 1482 took effect on January 1, 2020, the owner had until August 1, 2020 to deliver the notice. If you missed that deadline, the practical question is whether retroactive delivery cures the gap — and the answer is disputed. Some landlord attorneys argue that late delivery triggers the exemption going forward. Tenant advocates argue the property remains covered for the entire period the notice was missing. No appellate court has resolved this question definitively.
Our recommendation for landlords who missed the deadline: deliver the notice immediately, document delivery with a signed acknowledgment or certificate of mailing, and adjust all prior rent increases to comply with AB 1482 caps retroactively. This eliminates the tenant’s ability to claim you violated the statute during the gap period.
Does AB 1482 Apply If My City Already Has Rent Control?
AB 1482 is a floor, not a ceiling. Local rent control ordinances that are more restrictive than AB 1482 continue to apply. This creates a layered compliance problem for landlords who own properties in cities with their own rent stabilization laws.
Los Angeles (LARSO) covers buildings built before October 1, 1978 in the City of LA. LARSO’s allowable rent increase (typically 3–4% per year, set annually by the Rent Adjustment Commission) is more restrictive than AB 1482’s 5% + CPI cap. If your property is covered by LARSO, LARSO controls your rent increases, and AB 1482’s higher cap is irrelevant.
Santa Monica’s Rent Control Board covers buildings built before April 10, 1979 within city limits. Santa Monica’s rules are among the strictest in California, including registration requirements, maximum allowable rent increases, and relocation fees that exceed AB 1482’s requirements.
Beverly Hills has its own rent stabilization ordinance covering buildings with two or more units built before September 20, 1978. Beverly Hills caps annual increases at 3% for most covered units. Properties in Beverly Hills that fall outside the local ordinance (newer buildings, single-family homes) may still be covered by AB 1482 if they do not qualify for the state-level exemptions.
For landlords with portfolios spanning multiple LA County jurisdictions, the compliance matrix gets dense. A landlord who owns a 1972 apartment building in Santa Monica, a 2015 condo in Culver City, and a single-family rental in Glendale faces three different regulatory frameworks. Each property needs its own compliance analysis.
What Happens If a Landlord Violates AB 1482?
The penalties for non-compliance are substantial and tilted heavily in the tenant’s favor.
Rent overcharges. A tenant who has been charged rent exceeding the AB 1482 cap can demand a refund of all overpayments, potentially going back to January 1, 2020. If the landlord refuses, the tenant can file a civil action and recover actual damages plus attorney’s fees.
Wrongful eviction. Evicting a tenant without just cause from a covered property violates Civil Code § 1946.2. The tenant can sue for actual damages, punitive damages, and attorney’s fees. Wrongful eviction claims in Los Angeles routinely settle for $20,000 to $100,000+ depending on the circumstances. A landlord who believed in good faith that the property was exempt — but never delivered the required notice — still faces liability.
City-level penalties. In jurisdictions with local rent control, violating AB 1482 in addition to the local ordinance can trigger separate penalties under both the state statute and the municipal code. The eviction process in California requires strict compliance with notice requirements, and AB 1482 adds just cause as an additional hurdle for covered properties.
How Do ADUs and Converted Garages Fit Into AB 1482?
Accessory dwelling units created under California’s ADU laws (Government Code §§ 65852.2 and 65852.22) present a gray area. An ADU constructed as new on a property with an existing primary residence may qualify for the 15-year new construction exemption based on its own certificate of occupancy, even if the primary residence is older.
However, a garage conversion or internal subdivision that did not receive a separate certificate of occupancy may be treated as part of the existing structure and inherit the primary building’s AB 1482 coverage status. The Department of Housing and Community Development has issued informal guidance suggesting that legally permitted ADUs are generally exempt under the new construction provision for 15 years from issuance of the certificate of occupancy, but this has not been tested in court.
For landlords adding ADUs to their properties, the strategic move is to ensure the ADU receives its own certificate of occupancy with a clearly documented issuance date, and to structure ownership to preserve exemption eligibility (individual or qualifying LLC, not corporate).
Frequently Asked Questions
What properties are exempt from AB 1482 in California?
Single-family homes and condos owned by individuals (not corporations or REITs) are exempt with proper written notice. New construction less than 15 years old and owner-occupied duplexes are also exempt. Deed-restricted affordable housing and certain government-owned properties are excluded as well.
Do I need to give my tenant a notice that AB 1482 doesn’t apply?
Yes, for single-family homes and condos. Under Civil Code § 1946.2(e)(8)(B)(i), you must deliver written notice to the tenant. Without this notice, the exemption does not apply regardless of your property type or ownership structure.
What is the maximum rent increase under AB 1482?
5% plus the local Consumer Price Index, with an absolute maximum of 10% in any 12-month period. The applicable CPI is published annually by the Bureau of Labor Statistics for the Los Angeles-Long Beach-Anaheim metropolitan area.
Can an LLC-owned property be exempt from AB 1482?
Yes, but only if every member of the LLC is a natural person. If any member is a corporation, REIT, or another LLC that has a corporate member, the property is covered by AB 1482 and the exemption does not apply.
Does AB 1482 apply to commercial properties?
No. AB 1482 applies exclusively to residential rental properties. Commercial evictions and lease disputes are governed by the lease terms and general California contract law, with no statewide rent cap or just cause requirement.
What if my property ages out of the 15-year new construction exemption?
Once your property crosses the 15-year threshold, AB 1482 coverage begins automatically. You should plan for this transition by ensuring lease terms and rent increase schedules comply with the statute before the exemption expires.
Protect Your Investment With Strategic Legal Counsel
AB 1482 compliance is not optional, and the exemptions are narrower than most landlords assume. A single missing notice or an incorrect ownership structure can subject your property to rent caps, just cause requirements, and retroactive liability. BH Real Estate Law advises property owners and investors across Beverly Hills, Santa Monica, West Los Angeles, and all of LA County on rent control compliance, exemption qualification, and lease structuring that protects your rights.
Call (888) 422-6762 to schedule a consultation with our real estate attorneys.
This article is for informational purposes only and does not constitute legal advice. Consult an attorney for advice specific to your property and situation.
