Higher Rent Increase Limits Take Effect Under AB 1482
Beginning August 1, 2026, owners of multifamily properties covered by California’s Tenant Protection Act (AB 1482) will be permitted to implement larger annual rent increases in many Southern California markets.
The updated limits reflect higher regional inflation and affect qualifying rental properties in LA, Orange, Riverside, and San Bernardino counties.
For properties covered by AB 1482:
- LA and Orange counties: Maximum annual rent increase rises from 8.0% to 8.7%.
- Riverside and San Bernardino counties: Maximum annual rent increase increases from 7.5% to 8.1%.
Which Multifamily Properties Are Subject to AB 1482?
The updated limits apply only to residential properties covered by California’s Tenant Protection Act (AB 1482).
In general, the law applies to many apartment communities that are more than 15 years old, as well as certain mobile homes. Most newer construction is exempt, along with many single-family homes and condominiums that are not owned by corporate entities.
Because exemptions can vary, owners should confirm whether their property is subject to AB 1482 before implementing a rent increase.
City of LA RSO Properties Follow Different Rules
It is important not to confuse the statewide AB 1482 rent caps with local rent control requirements.
Properties subject to the City of LA Rent Stabilization Ordinance (RSO) are not governed by these new AB 1482 limits. Instead, LA RSO properties must follow the City’s rent increase rules, which currently cap annual increases at 3%.
Several other Southern California cities—including Bell Gardens, Cudahy, Culver City, Huntington Park, Pomona, Santa Ana, and West Hollywood—also have local rent control ordinances that establish lower allowable rent increases than the statewide AB 1482 limits.
Why Are the Rent Caps Increasing?
California recalculates the maximum allowable AB 1482 rent increase each August using regional Consumer Price Index (CPI) data.
In the Greater LA region, the April CPI increased 3.7% year over year, largely driven by higher grocery and gasoline prices. Under the law’s formula, landlords may add 5% to the regional inflation rate, resulting in the new 8.7% cap for qualifying properties in LA and Orange counties.
Last year, a 3.0% inflation rate resulted in an 8.0% maximum increase, making this year’s adjustment a modest increase over the prior period.
What This Means for Multifamily Owners
For owners of properties covered by AB 1482, the higher cap provides additional flexibility when evaluating annual rent adjustments. However, compliance remains critical.
Before issuing a rent increase notice, owners should verify whether their property is governed by AB 1482, subject to a local rent stabilization ordinance, or exempt from statewide rent cap requirements. Taking this step can help avoid compliance issues while supporting informed property management and investment decisions.
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