If you own rental property in California, the amount you can raise rent this year depends on one question before any other: which rule actually governs your unit. For most Los Angeles County owners whose buildings are more than 15 years old, the answer is the statewide cap in AB 1482, and the number changed on August 1, 2026. Borna Houman Law represents landlords and property owners only, from our Santa Monica office at 2530 Wilshire Blvd, and this guide explains how much a landlord can raise rent in California for the 2026-27 cycle and how to do it without creating overcharge liability.
Key Takeaway: For increases from August 1, 2026 through July 31, 2027, an AB 1482 landlord in Los Angeles or Orange County may raise rent no more than 8.7 percent in any 12 months, measured from the lowest rent charged in the prior 12 months. Stricter local rent control, like the Los Angeles RSO at 3 percent, overrides that cap.
Owners most often miss the base. The cap is not 8.7 percent of today’s rent. It is 8.7 percent of the lowest gross rental rate charged at any point in the 12 months before the increase takes effect. How you documented any mid-year reduction decides whether that reduction becomes the new base.
Planning an increase across a portfolio? Owners with units in more than one city often have three different caps running at once: AB 1482, a city rent stabilization ordinance, and an exempt single-family home. A single wrong notice can expose you to up to three times the overcharge. We review rent rolls, classify each unit, and draft compliant notices before they are served. Our Los Angeles landlord attorney team handles this work for owners across the Westside and LA County. Call (888) 42-BORNA to schedule a confidential consultation.
How much can a landlord raise rent in California in 2026?
A landlord covered by AB 1482 can raise rent by 5 percent plus the regional change in the cost of living, or 10 percent, whichever is lower. For the Los Angeles-Long Beach-Anaheim region, the Los Angeles County Department of Consumer and Business Affairs lists the maximum as 8.7 percent for increases effective August 1, 2026, built from the 5 percent base plus a 3.7 percent CPI change.
The prior cycle was lower. For increases effective August 1, 2025 through July 31, 2026, the Los Angeles-area cap was 8.0 percent (5 percent plus 3.0 percent CPI). The County publishes both figures on its rent increases page, which is the most reliable public source for the current number.
The rule itself lives in Civil Code section 1947.12, part of the Tenant Protection Act of 2019. Under that section, the cost-of-living figure is the percentage change in the Consumer Price Index for the metropolitan area where the property sits, measured from April of the prior year to April of the current year for increases taking effect on or after August 1, and rounded to the nearest tenth of a percent.
What is the base rent the cap is measured from?
The cap is measured from the lowest gross rental rate charged for the unit at any time during the 12 months before the increase takes effect. Civil Code section 1947.12(a)(1) then excludes any rent discounts, incentives, concessions, or credits that the owner offered and the tenant accepted when that lowest rate is determined.
That exclusion protects owners who document a reduction correctly. In our experience representing Los Angeles owners, the problem is the informal reduction: an owner who simply drops the rent for a few months during a repair or a slow season, with nothing in writing calling it a concession or credit, risks having the lower figure treated as the gross rental rate charged.
Assume a two-bedroom unit in a 1990s Westwood building, not under the City RSO, renting at $3,000 per month. In March 2026 the owner reduces the rent to $2,850 for three months while a balcony is repaired, then returns it to $3,000 in June. On September 1, 2026, the owner wants the maximum increase.
- If the $150 reduction was documented as a temporary rent credit the tenant accepted, the statute excludes it. The base is $3,000, and the maximum new rent is $3,261 (8.7 percent equals $261).
- If the owner simply charged $2,850 with no written concession, a tenant can argue the base is $2,850. On that reading the maximum is $3,097.95 (8.7 percent equals $247.95).
- The gap is $163.05 per month, or $1,956.60 over a year. That is the exposure on a single unit.
Put every temporary reduction in a signed letter or ledger entry that labels it a credit or concession, states the regular rent, and states when the regular rent resumes.
How many times a year can a California landlord raise rent?
An AB 1482 landlord may raise rent for the same tenant in no more than two increments over any 12-month period, and the combined total still cannot exceed the cap. Splitting an increase into two smaller notices does not create additional room.
Take a $3,000 unit with an increase effective September 1, 2026. If the owner raises rent 4 percent to $3,120 in September and wants another increase in March 2027, the two together are measured against $3,000 and cannot exceed 8.7 percent. The March increase can add no more than $141, to $3,261, and it uses the second of the two permitted increments, so no third increase is available until the 12-month window rolls forward.
The safer practice is a single annual increase on a fixed date, calculated from a rent ledger that shows every rate charged and every credit given over the trailing 12 months. Keep that ledger as a standing compliance record for each unit.
Is AB 1482 still in effect?
Yes. AB 1482 remains in effect and is scheduled to sunset on January 1, 2030 under the terms of Civil Code section 1947.12. Until then, the 5 percent plus CPI formula, capped at 10 percent, applies to every covered unit in California.
A 2025 bill that would have lowered the statewide formula and removed the sunset, AB 1157, was pulled from consideration that year. As of October 2026 the formula is unchanged. Owners should still treat the cap as a moving target: the percentage resets every August, and the Legislature can revisit the statute before 2030.
AB 1482 also carries just cause eviction protections in Civil Code section 1946.2. An owner cannot avoid the rent cap by terminating a tenancy to reset the rent; terminations of tenants who have occupied the unit for 12 months require a just cause ground.
Who is exempt from California rent control under AB 1482?
AB 1482 does not apply to every rental. The main exemptions are housing that received a certificate of occupancy within the previous 15 years, qualifying single-family homes and condominiums, owner-occupied duplexes, deed-restricted affordable housing, dormitories, and units already covered by a local rent control law that is stricter.
Two of these deserve attention because owners misread them most often:
- The 15-year rolling exemption. The 15 years is counted back from today, not from 2019. A building that received its certificate of occupancy in 2011 was exempt in 2025 and became covered in 2026. Owners of newer construction should recheck coverage every year.
- The single-family home and condominium exemption. It applies only if the owner is not a real estate investment trust, a corporation, or an LLC with at least one corporate member, and only if the tenant received the written exemption notice the statute requires. A home owned by a natural person or a family trust can qualify, but an owner who never gave the notice is covered.
For a section-by-section treatment of each category, see our guide to AB 1482 exemptions for California landlords.
How do I know if my property is covered by AB 1482 or a local ordinance?
Start with the city, then the building’s age, then ownership. If the unit sits in a city with its own rent stabilization ordinance and the ordinance covers the unit, the local cap controls because it is lower. If no local ordinance covers it, AB 1482 controls unless an exemption applies.
The table below shows which rule sets the ceiling for common Los Angeles County scenarios in the 2026-27 cycle.
| Unit type and location | Rule that governs the increase | 2026-27 ceiling |
|---|---|---|
| City of Los Angeles, building with a certificate of occupancy on or before October 1, 1978 | Los Angeles RSO (LAMC Chapter XV) | 3% for July 1, 2026 through June 30, 2027 |
| City of Los Angeles, newer building, certificate of occupancy more than 15 years old | AB 1482 (Civil Code 1947.12) | 8.7% from August 1, 2026 |
| Long Beach or Glendale multifamily, covered by AB 1482 | AB 1482; neither city has a local rent cap | 8.7% from August 1, 2026 |
| Santa Monica, Beverly Hills, West Hollywood, Culver City, Pasadena, Inglewood, unincorporated County, covered unit | Local rent stabilization ordinance | Set annually by the local board; typically lower than AB 1482 |
| Single-family home owned by a natural person, exemption notice given | No statutory cap; Civil Code 827 notice rules still apply | None, but increases over 10% need 90 days’ notice |
| Building with a certificate of occupancy issued within the last 15 years | Exempt from AB 1482 | None, subject to notice rules |
Our jurisdiction guides cover the local caps in detail, including LARSO compliance for Los Angeles landlords and the Long Beach just cause ordinance, which leaves rent to state law.
What changed for Los Angeles RSO units in 2026?
The City of Los Angeles rewrote its RSO increase formula effective February 2, 2026. The annual allowable increase is now set at 90 percent of the average Consumer Price Index, with a floor of 1 percent and a ceiling of 4 percent, replacing the prior range of 3 to 8 percent.
The Los Angeles Housing Department states on its renter protections page that the allowable RSO increase is 3 percent for July 1, 2026 through June 30, 2027. The same amendments removed the separate percentage that owners could previously add for landlord-paid utilities, for increases effective on or after February 2, 2026.
An RSO building now tops out at 4 percent a year no matter what CPI does, which changes the economics of long-term holds and makes capital improvement and rent adjustment applications more important. An RSO owner must also be current on registration with LAHD to serve any increase at all; our LAHD registration guide covers that precondition.
How much notice does a California landlord need to give for a rent increase?
For a month-to-month tenancy, an increase of 10 percent or less requires at least 30 days’ written notice, and an increase of more than 10 percent requires at least 90 days’ written notice. Both periods come from Civil Code section 827.
The 10 percent line is measured cumulatively: an increase that, combined with all other increases in the prior 12 months, exceeds 10 percent needs the 90-day notice. In practice, only exempt units can lawfully exceed 10 percent, because AB 1482 and every local ordinance cap below that line.
If you serve the notice by mail rather than in person, section 827 makes service subject to Code of Civil Procedure section 1013, which adds five calendar days for an address in California. A fixed-term lease generally cannot be increased mid-term unless the lease itself provides for it. Our 90-day notice guide explains the longer notice in more depth.
What happens if a landlord raises rent above the AB 1482 cap?
An owner who demands, accepts, or retains rent above the AB 1482 cap is liable to the tenant in a civil action for the excess, and damages can reach three times the overcharge if the conduct was willful or involved oppression, fraud, or malice. That remedy, now in Civil Code section 1947.12(k), was added by SB 567 and took effect April 1, 2024.
The court may also award the tenant reasonable attorney’s fees and costs and order injunctive relief, and the tenant has three years from accrual to sue. SB 567 also authorizes the Attorney General, a city attorney, or county counsel to enforce the statute. An overcharge can also undermine a later unlawful detainer, because a notice to pay rent that demands more than the lawful amount is defective.
In the Westwood example, if a court accepted the $2,850 base, a 12-month overcharge of $1,956.60 could become a damages claim of $5,869.80 on a willfulness finding, before fees. That exposure is why we recommend owners calculate the increase from the ledger, not from memory, and correct any overcharge by credit as soon as it is discovered.
What should a landlord do before serving a rent increase?
Classify the unit, compute the lawful ceiling from the 12-month ledger, and serve a written notice with the correct lead time, in that order.
- Classify each unit. Confirm the city, the certificate of occupancy date, the ownership entity, and whether the exemption notice was given. Record the answer for each unit, not each building.
- Pull the trailing 12-month ledger. Identify the lowest rate charged, every prior increase in the window, and any concessions.
- Apply the right cap. Use 8.7 percent for AB 1482 increases effective August 1, 2026 through July 31, 2027 in Los Angeles and Orange Counties, or the local ordinance figure if it is lower.
- Check registration. RSO and County units must be registered and fees paid before an increase is enforceable.
- Serve correctly. Give 30 or 90 days’ notice under Civil Code 827, add five days if mailed, and keep a proof of service.
Frequently Asked Questions
What is the maximum rent increase in Los Angeles for 2026?
It depends on coverage. AB 1482 units in Los Angeles County may increase up to 8.7 percent for increases effective August 1, 2026 through July 31, 2027. City of Los Angeles RSO units are limited to 3 percent for July 1, 2026 through June 30, 2027.
Can a landlord raise rent 10 percent in California?
Only if the unit is exempt from AB 1482 and from local rent control. For covered Los Angeles-area units the 2026-27 cap is 8.7 percent, so a 10 percent increase would be an overcharge. An exempt owner who raises rent more than 10 percent must give 90 days’ written notice.
Does AB 1482 apply to single-family homes?
It can. A single-family home or condominium is exempt only if it is not owned by a REIT, a corporation, or an LLC with a corporate member, and only if the tenant received the written exemption notice required by Civil Code 1947.12. Without the notice, the home is covered by the cap.
Can I reset the rent to market when a tenant moves out?
Yes. Under AB 1482 and the Costa-Hawkins Rental Housing Act, an owner may set the initial rent for a new tenancy after a voluntary vacancy or a lawful termination. Some local ordinances add conditions after certain no-fault terminations, so check the city before re-renting.
Do rent concessions affect the AB 1482 calculation?
Not if they are documented. Civil Code 1947.12 excludes rent discounts, incentives, concessions, and credits the tenant accepted when it sets the base rate. An undocumented reduction is riskier, because a tenant can argue the lower figure was the gross rental rate charged.
Are commercial leases subject to rent caps in California?
No. AB 1482 and local rent stabilization ordinances apply to residential tenancies. Commercial rent is set by the lease, although certain qualified commercial tenants have notice protections under newer state law.
Talk to a Landlord Attorney Before You Serve the Notice
Overcharge claims usually start when a tenant’s attorney checks the 12-month ledger. Borna Houman Law represents landlords and property owners only, and we can classify your units, calculate each lawful ceiling, and prepare notices that hold up if they are ever challenged. When a tenant refuses to pay a lawful increase, our unlawful detainer attorneys take the next step. Learn more about our Los Angeles landlord representation, or call (888) 42-BORNA to schedule a confidential consultation.
Written by Borna Houman, Esq., California State Bar #352339, Borna Houman Law, 2530 Wilshire Blvd, Santa Monica, CA. Borna Houman Law represents landlords and property owners only.
Disclaimer: This article provides general information about California law and is not legal advice. Rent caps change annually and local ordinances vary. Reading this article does not create an attorney-client relationship. For advice about your property, contact Borna Houman Law at (888) 42-BORNA.
