Understanding the California Tenant Protection Act (AB1482)
Unfortunately, many Rental Property owners will be forced to pay their tenants a relocation fee of at least one month's rent or not even be able to give notice or take possession of their own property. Most will have been able to avoid this by simply having the right paperwork in place and having a general understanding of these laws put in place in 2019. They are not new, but seem to still be new to most.
As a landlord in California, it's crucial to stay updated on California’s evolving housing laws. One key piece of legislation impacting rental properties is the AB 1482 - The California Tenant Protection Act, or TPA. Enacted in 2019, this law introduced statewide Rent Cap and Just Cause Eviction protections aimed at providing more stability for renters. Landlords must understand its provisions to ensure compliance and avoid potential legal issues. T3 Management clients can rest assured that their contracts are drafted appropriately.
Here’s a breakdown of The Tenant Protection Act (TPA) AB 1482 and what it means for you as a landlord.
Some properties and owners are exempt, more on this later.
What is AB 1482?
The California Tenant Protection Act (AB 1482) was passed to regulate rent increases and evictions across the state. Its main goal is to make housing more affordable and secure for tenants. The law introduces certain limitations and requirements for landlords. AB 1482 places two significant restrictions on rental properties:
- Rent Cap – It limits how much you can increase rent on most residential rental properties, certain properties and owners are exempt.
- Just Cause Evictions – It regulates the reasons for which you can evict a tenant.
Key Provisions of the Tenant Protection Act for Landlords
1. Rent Cap Limitations
Under AB 1482, rent increases for most properties are limited to 5% of the current rent plus the current CPI (capped at 10% max). CPI is determined by the local Year Over Year numbers based on April. For San Diego, you can find that link here: https://www.bls.gov/regions/west/news-release/consumerpriceindex_sandiego.htm
Here is a graph for allowable increases, if you are NOT exempt from the TPA, through 7/31/25:
Effective Until July 31st, 2025 | ||
County | CPI Increase | Allowable Increase |
Los Angeles | 3.90% | 8.90% |
Orange | 3.90% | 8.90% |
Riverside | 4.30% | 9.30% |
San Bernardino | 4.30% | 9.30% |
San Diego | 3.60% | 8.60% |
Alameda | 3.80% | 8.80% |
Contra Costa | 3.80% | 8.80% |
Marin | 3.80% | 8.80% |
San Francisco | 3.80% | 8.80% |
San Mateo | 3.80% | 8.80% |
All other counties | 3.80% | 8.80% |
Annual Rent Increases: Landlords are prohibited from raising rents more than twice in a 12-month period. This means that even if your rent increase is below the cap, you cannot raise the rent more than twice in one year.
When relisting a property, this is non-applicable and landlords may set rent at market rate.
2. Just Cause Eviction Reasons for termination of tenancy
TPA provides tenants with just cause eviction protections, which means you cannot evict tenants without a legitimate reason. There are two types of just cause eviction reasons:
- “At-Fault” Reasons: This includes reasons such as:
- Default in payment of rent
- Breach of lease terms
- Maintaining, Committing, or permitting the maintenance of a nuisance
- Committing waste
- Tenant refusal to sign renewal forms they had agreed to
- Engaging in illegal activities on the premises.
- Unauthorized subletting
- Tenant refusal to owner to enter
- Unlawful use of the property
- Damaging the property
- These are just some examples. More details on our TPA EXEMPT form
- “No-Fault” reasons: This category includes evictions that occur for reasons outside the tenant's control, such as:
- The landlord, or their family, intends to occupy
- The landlord decides to remove the property from the rental market
- Unsafe habitation
- The property will undergo major renovations that cannot be done with tenants in place.
3. Just Cause Notices:
- Curable “At Fault” reasons: Before the owner can terminate the tenancy for an at fault Just Cause violation that is curable, the owner must first provide notice to cure giving tenant an opportunity to cure the violation.
- Tenant Payments Pursuant to “No-Fault” Eviction - Owner must notify tenant of their right to direct payment relocation assistance equal to one month of the tenants rent and pay within 15 days of notice. In lieu of direct payment, Owner may waive the payment of rent for the final month.
Are you EXEMPT from the Tenant Protection Act???
- Exemptions:
- Newer Properties: If a property is less than 15 years old ( according to certificate of occupancy), it is exempt fromThe Tenant Protection Act, AB 1482.
- Single-Family Homes and Condominiums: If you own a single-family home, condo, or owner occupied duplex, you are exempt, so long you provide proper notification to the tenant. Owner must NOT be:
- Real Estate Investment Trust (REIT)
- A Corporation
- An LLC in which at least one member is a corporation
Disclosure of Exemption is imperative. Tenants must be notified using specific language:
What Does TPA Mean for You as a NON-EXEMPT Landlord?
As a landlord, TPA changes the way you can manage rental increases and evictions, but it’s not all bad news. Here’s what you need to know about how the law affects your role:
1. Know if you are EXEMPT or not and make sure you have the proper disclosure if you are exempt. If you are exempt but have provided proper disclosure to the tenant, you are subject to the requirements of the TPA.
2. Eviction Protections Require Planning and Documentation
The just cause eviction protections mean that you can’t terminate a tenancy without a valid reason. Whether you need to evict a tenant for non-payment, lease violations, or for personal use of the property, you must follow specific procedures.
Proper documentation is key. Ensure you have solid evidence of any violations or reasons for eviction.
3. Fixed Lease Term: Seek counsel from a Licensed Attorney or a Property Manager, but a Fixed Lease Term with proper communication and notice should eliminate all the issues of Just Cause Eviction. If the term of the lease ends, and you give proper Notice Of Non-Renewal, you should be able to take possession of the property without eviction. Renew annually rather than go Month to Month.
Staying Informed and Compliant
Staying on top of the rules and regulations will help you avoid potential pitfalls. Be sure to:
- Review Lease Agreements: Make sure your leases comply with TPA rent increase and eviction terms. This is important whether or not your property is covered by rent cap provisions.
- Understand Local Ordinances: Some cities in California, such as the city of San Diego, Los Angeles, San Francisco, and Berkeley, have their own additional rent control and tenant protection laws. Be sure to familiarize yourself with any local rules that may affect your property.
- Consult with a Legal Professional: To ensure that you’re in full compliance, it’s always a good idea to consult with a landlord-tenant attorney who is familiar with TPA and any local regulations that might apply to your property.
See T3 Management’s TPA Guide for further guidance on how to navigate TPA when it comes to your rental properties!
