What Rental Property Owners Need to Know About CA Assembly Bill 1482
Belong on Sep 15, 2022
If you’re a homeowner in California, you’ve probably heard of Assembly Bill 1482, or AB 1482. This law regulates something on every owner’s mind — what they’re allowed to charge in rent!
AB 1482 helps protect rental residents throughout the state of California. But it also profoundly affects what it means to own a rental property, so you’ll want to get to know this bill inside and out. Here's what you need to know about AB-1482.
What is Assembly Bill 1482?
AB 1482 controls how much landlords are allowed to increase rent every year. The bill was passed in late 2019, and took effect at the beginning of 2020. Barring another change in legislation, it will remain active until 2030.
The goal of AB 1482 is to protect tenants in California. It does that in two ways — by controlling rent increases, and by regulating evictions.
AB 1482 and rent control
AB 1482 rent increases across California are limited to 5% annually, plus the local rate of inflation. In total, the increase must be no more than 10% higher than the previous year’s rent. Even though it’s a state law, this bill will not affect rent control in every area of California.
Some CA municipalities, like Berkeley, Oakland, and the Bay Area, already have their own rent control legislation. In these municipalities, existing rent-control laws will take precedence.
Additionally, don’t forget that rent control only applies to residents who already live in your home. If you’re searching for new tenants, you can still charge whatever rent you like — although of course, you’ll be limited by market prices in your area.
AB 1482 and evictions
If residents have lived in your rental home for at least a year, AB 1482 means you’ll only be able to evict them for what the bill defines as a ‘just cause.’
Luckily, those ‘just causes’ are very fair and comprehensive. They’re mostly around breaching the rental contract, or needing access to the property yourself.
Some just causes under AB 1482 include:
- The resident failing to pay rent
- Breaching the terms of the lease
- Criminal activity on the property
- A resident subletting the property against the lease, or without the owner’s permission
- A resident refusing the owner’s legal access to the property
- Using the home for illegal purposes (such as a commercial operation in a residential district)
- If the owner, or their family member, wishes to move into the home
- Renovating or demolishing the home
- If the owner no longer wishes to rent out the home
- If the owner was ordered by the local or regional government to vacate the property
Here’s a complete list of eviction just causes under AB 1482.
Which homes are affected by AB 1482?
This law sounds like a pretty big deal — and for many homeowners, it is.
But the good news is that AB 1482 comes with some pretty major exemptions. Unless you own a multi-family dwelling or started a corporation, there’s a good chance you won’t be affected.
If your home falls into one of these categories, you’re exempt from AB 1482:
- Owner-occupied duplexes
- Owner-occupied residences in which the owner and tenant share a kitchen or bathroom
- Single-family residences not owned by a corporation or LLC
- Condominiums not owned by a corporation or LLC
- Any home constructed in the last 15 years
As you can see, these are some pretty wide-ranging exemptions.
In general, AB 1482 will only affect landlords who own multi-family residences, properties they don’t live in, or homes over 15 years old.
Additionally, don’t forget that this bill only affects municipalities without existing rent-control laws.
Rent control and you
As a homeowner, rent control and eviction legislation might feel annoying. Your home was a costly investment, and It’s only natural to want to have full reign over how you manage that asset.
But even if you are affected by AB 1482, remember that it’s intended to help residents feel safe and secure in their rental homes.
When renters feel protected, it creates a stable rental environment, where owners and tenants can trust and rely on each other. That makes finding and keeping housing less stressful, benefiting your entire community.
Creating better rental relationships
Good management practices are another important part of good owner-resident relationships.
When renters know they can easily reach their landlord and rely on them to solve problems, they’re likely to want to stick around and treat their home well, long-term.
But that level of service can be tricky for many homeowners to deliver all on their own.
That’s the idea behind Belong. Our modern, people-focused solution streamlines every stage of the rental process, from finding residents to maintaining your property.
We believe renting should feel friendly and positive for everyone — owners and tenants. Find out if you qualify today.