
Last updated: July 2026 · By Taylor Avakian, Apartment Building Broker, The Group CRE
If your LA building isn't under the City's Rent Stabilization Ordinance, don't assume you can raise rent by whatever the market will bear. California's statewide rent cap — AB 1482 — almost certainly applies, and for the Los Angeles area the 2026 ceiling is 8.7%. Here's exactly what you can charge, which buildings are exempt, and how AB 1482 stacks up against the LA City and County rent-control rules.
AB 1482 caps annual rent increases at 5% plus the regional change in the cost of living (CPI), or 10% — whichever is lower. The CPI piece is measured each April and resets every August 1.
For the Los Angeles–Long Beach–Anaheim area, the April 2026 CPI came in at 3.7%, so the cap is 8.7% for any increase that takes effect August 1, 2026 through July 31, 2027. The year before (August 1, 2025–July 31, 2026) it was 8.0%.
What that looks like in dollars: on a $2,000/month unit, an 8.7% increase is $174 — new rent $2,174. Because 8.7% is below the 10% hard ceiling, the ceiling doesn't bind in LA this year; the regional CPI does all the work.
One caution: the CPI differs by region. Riverside, San Diego, San Francisco, and "all other California areas" each have their own number, so if you own outside LA County, use that region's figure — not 8.7%.
AB 1482, the California Tenant Protection Act of 2019, is the statewide floor for rent regulation. It does two things: it caps annual rent increases (above) and it requires "just cause" to end most tenancies. It applies broadly to residential rentals that aren't already covered by a stricter local ordinance — and it's currently scheduled to sunset on January 1, 2030 unless the Legislature extends it.
Think of AB 1482 as the backstop: if no tighter local rule covers your building, this one does.
AB 1482 covers most multifamily housing more than 15 years old, on a rolling basis — the 15-year window moves forward every year, so a building's "new construction" exemption expires as it ages. As of 2026, that's roughly units with a certificate of occupancy issued on or before about 2011; anything newer is still exempt.
Common exemptions:
If you own a single-family rental or a condo, the exemption notice is the detail that trips people up — no notice, no exemption.
When more than one rule could apply, the stricter one wins. In practice:
So the 8.7% headline is real, but it only reaches the slice of your portfolio that isn't already under a tighter City or County cap. For the full City-vs-County picture, see my breakdown of LA City vs. LA County rent increase rules.
AB 1482 lets you raise rent no more than twice in any 12-month period, and the two increases combined can't exceed the annual cap. You can't get around the cap with one big jump, either. On top of that, state law requires 30 days' written notice for increases of 10% or less and 90 days' notice for anything above 10% (rare under AB 1482, since the cap itself is usually under 10%).
Once all tenants have lived in the unit 12 months (or at least one tenant has been there 24 months), you need just cause to end the tenancy. Just cause splits into two buckets:
Here's the part most owners miss: a buyer underwrites an AB 1482 building very differently than a hard rent-controlled one. An 8.7% headline cap sounds generous, but no one models 8.7% forever — CPI moves, and the realistic long-run number is closer to 5–7%. What actually drives value is the gap between your in-place rents and market, and how cleanly your rent history lines up with the AB 1482 cap for each year. If you've over-raised — say, applied last year's 8.0% when a unit had already taken an increase in the same 12 months — that surfaces in diligence and costs you at closing.
If you're weighing a sale, get a valuation that reflects your building's actual rent-regulation status, not a generic cap-rate guess. See my guide to valuing an LA apartment building, and for the broader rulebook start with the LA Landlord Hub.
Want a straight read on where your rents sit against the cap and what your building would actually trade for? Reach out — I'll run the numbers.
Taylor Avakian
Apartment Building Broker, The Group CRE
1880 Century Park E Suite 800, Los Angeles, CA 90067
Phone: 916-996-4421 | Email: taylor@lyonstahl.com
This is general information for LA multifamily owners, not legal advice. Rent-cap and just-cause rules turn on building-specific facts — confirm your property's status with LAHD, the CAA, or counsel before issuing any notice.
For the Los Angeles–Long Beach–Anaheim area, AB 1482 caps the increase at 8.7% (5% + 3.7% regional CPI) for increases effective August 1, 2026 through July 31, 2027. The prior year (Aug 1, 2025–Jul 31, 2026) it was 8.0%. AB 1482's formula is always 5% plus regional CPI, or 10%, whichever is lower.
Housing with a certificate of occupancy issued within the last 15 years (a rolling date — roughly built after 2011 as of 2026); single-family homes and condos not owned by a corporation, REIT, or LLC-with-corporate-member, provided the owner gives the required written exemption notice; and deed-restricted affordable housing, among a few others. Buildings under a stricter local ordinance (like the LA City RSO) follow that local rule instead.
No. AB 1482 is a statewide cap that acts as a backstop. Where a stricter local law applies — the LA City RSO (3% flat) or the LA County RSTPO (about 1.93% for 2025–2026) — that local rule controls. AB 1482 mainly governs newer LA buildings and units not covered by any local ordinance.
No more than twice in any 12-month period, and the two increases combined cannot exceed the annual cap (8.7% in LA for 2026–2027). You also can't circumvent the cap with a single larger increase.
Yes. Once all tenants have occupied the unit for 12 months (or one tenant for 24 months), you need just cause. No-fault terminations — such as owner move-in — require relocation assistance equal to one month's rent, provided within 15 days of the notice.
AB 1482 is currently set to sunset on January 1, 2030, unless the Legislature extends or replaces it.