California AB 1482 Rent Control Explained: Exemptions, Calculations, and the 2026 San Diego Cap

Quick Answer

California AB 1482 applies to most residential rental properties in San Diego County that are more than 15 years old and not otherwise exempt. For covered properties, the maximum allowable rent increase is 8.8% through July 31, 2026 — calculated as 5% plus San Diego County's CPI change of 3.8%. Single-family homes and condos where the owner provided written exemption notice in the lease at signing are exempt. The City of San Diego applies stricter local rules — Just Cause from day one, two months relocation assistance for No-Fault evictions, and city-specific exemption language required.

TL;DR

• AB 1482 caps rent at 5% + local CPI — maximum 10% — for most covered California residential properties
• San Diego County 2026 cap: 8.8% through July 31, 2026 (5% + 3.8% CPI)
• Properties built within the last 15 years are exempt on a rolling basis — currently properties built after January 1, 2010
• Single-family homes and condos not owned by a corporation, REIT, or LLC are exempt only if a written exemption notice was in the lease at signing — not retroactively
• Just Cause eviction required after 12 months of occupancy for covered properties statewide
• City of San Diego: Just Cause from day one, two months relocation for No-Fault, city-specific exemption notice required
• Violations since April 1, 2024 can result in actual damages, punitive damages, and attorney fees

What Is California AB 1482?
California AB 1482 — the Tenant Protection Act of 2019 — is a statewide law that functions as a dual compliance system: a rent cap that limits how much a landlord can increase rent in any 12-month period, and a Just Cause eviction framework that restricts the reasons a landlord may terminate a tenancy. It is codified at California Civil Code Sections 1947.12 (rent cap) and 1946.2 (Just Cause). It took effect January 1, 2020 and applies to most California residential rental properties built more than 15 years ago.

What Is the AB 1482 Rent Cap?
The AB 1482 rent cap is a state-mandated pricing limit that restricts how much a landlord can increase rent within any 12-month period for covered properties. The cap is calculated as 5% plus the regional Consumer Price Index percentage change, with a hard ceiling of 10% regardless of CPI. For San Diego County in 2026, the cap is 8.8% through July 31, 2026. The cap resets each August 1 using March-to-March CPI data specific to San Diego and Riverside Counties.

What Is Just Cause Eviction Under AB 1482?
Just Cause eviction under AB 1482 is a legally mandated requirement that limits the reasons a landlord may terminate a tenancy for covered properties after a tenant has occupied a unit for 12 months or longer. Just Cause is divided into At-Fault causes — non-payment, lease violations, illegal activity — where no relocation assistance is required, and No-Fault causes — owner move-in, remodel, withdrawal from rental market — where relocation assistance is mandatory. Under the City of San Diego's local ordinance, Just Cause applies from the first day of tenancy rather than after 12 months.

What Is an AB 1482 Exemption Notice?
An AB 1482 exemption notice is a legally required written disclosure that a landlord must include in the lease at the time of signing to establish that a qualifying property is exempt from AB 1482's rent cap and Just Cause eviction requirements. The exemption notice is a prerequisite for exempt status — it cannot be added to an existing tenancy retroactively. Without a valid notice in the lease at signing, an otherwise qualifying property is treated as covered under AB 1482. For properties within the City of San Diego, the city-specific exemption notice is required — the state notice alone is insufficient.

What Is the San Diego Tenant Protection Ordinance?
The San Diego Tenant Protection Ordinance is a local law that functions as a stricter overlay to state AB 1482 for properties within the City of San Diego. It requires Just Cause for eviction from the first day of tenancy (not after 12 months), relocation assistance of two months' rent for No-Fault evictions (not one month), and city-specific exemption language in the lease (the state AB 1482 notice alone does not satisfy the local requirement).

What Is a No-Fault Eviction Under AB 1482?
A No-Fault eviction under AB 1482 is a tenancy termination where the tenant has not violated the lease — the landlord seeks to end the tenancy for ownership reasons such as an owner move-in, substantial remodel, or withdrawal from the rental market. No-Fault evictions require relocation assistance: one month's rent under state AB 1482, two months' rent within the City of San Diego.

Coverage under AB 1482 is determined by property type, age, ownership structure, and whether the exemption notice was included in the lease at signing. The most important rule: if a qualifying property did not include the exemption notice in the lease at signing, it is treated as covered — regardless of property type or ownership structure. Exemption notices cannot be added retroactively.

The AB 1482 rent cap formula is: 5% + regional CPI percentage change = maximum allowable increase (not to exceed 10%). For San Diego County, the CPI change is calculated using March-to-March data from the Bureau of Labor Statistics. The 2026 San Diego cap is 8.8% — effective August 1, 2025 through July 31, 2026.

Step-by-step calculation:

1. Confirm the property is covered by AB 1482 and not exempt

2. Verify the current CPI figure at BLS.gov — do not assume last year's number still applies

3. Add 5% + the CPI percentage change. If result exceeds 10%, the cap is 10%

4. Multiply current monthly rent by the cap percentage to determine maximum increase

5. Confirm all increases in the prior 12 months do not cumulatively exceed the cap

6. Issue 30 days written notice for increases at or below 10%

For most San Diego rentals between $2,800 and $4,000 per month, applying the full AB 1482 cap increases annual revenue by $2,952 to $4,224 — while a single compliance mistake can exceed $100,000 in asset impact at a 5.2% cap rate. The math is not close. An illegal increase on a $3,000 unit that forces tenant turnover can result in $3,000 to $6,000 in vacancy and make-ready costs — equivalent to a $57,692 to $115,384 asset value loss. Compliance is not a cost — it is the condition under which the revenue gain is legally accessible.

Just Cause eviction under AB 1482 is a legal protection system that prevents covered landlords from terminating a tenancy without a documented, legally recognized reason after 12 months of occupancy. At-Fault Just Cause allows termination without relocation assistance. No-Fault Just Cause requires relocation assistance — the amount varies by jurisdiction. See RMG's eviction coordination services for how this process is managed.

San Diego landlords must comply with whichever law provides greater protection to the tenant. The Cities of San Diego, Chula Vista, and Imperial Beach each have local ordinances that exceed state AB 1482. Applying the state notice alone within these cities is a compliance failure even if the property would otherwise qualify for an exemption.

AB 1482 compliance is either treated as paperwork or as NOI protection. The difference between those two approaches is the difference between a management company that exposes owners to liability and one that prevents it. How a property manager approaches AB 1482 is a reliable signal of how they approach every other operational and legal obligation.

Effective April 1, 2024, the consequences for AB 1482 violations were significantly strengthened. A landlord who raises rent above the cap can be liable for actual damages, punitive damages, and attorney fees. The practical exposure from a single illegal increase that causes tenant departure can far exceed the revenue the increase was designed to generate.

The following five mistakes account for the majority of AB 1482 compliance failures among San Diego County landlords. Each is avoidable with a documented process. Each can generate legal exposure that substantially exceeds the cost of getting it right.

Mistake 1 — Using last year's CPI figure. The AB 1482 cap resets every August 1 using updated CPI data. Landlords who apply the prior year's figure without checking current data at BLS.gov may issue a notice above the current legal maximum. This is the single most common AB 1482 calculation error in San Diego County.

Mistake 2 — Missing the exemption notice at lease signing. A single-family home or condo that qualifies for an AB 1482 exemption but did not include the exemption notice in the lease at signing is treated as a covered property. The exemption cannot be established after the lease is signed. This error is irreversible until the next lease signing.

Mistake 3 — Using the state exemption notice inside City of San Diego limits. The City of San Diego requires city-specific exemption language — the state AB 1482 notice alone does not satisfy the local requirement. Landlords who use the state form are not properly exempt from the local ordinance's Just Cause and relocation requirements.

Mistake 4 — Overlooking ADU multi-unit classification. A single-family home with an ADU or JADU on the lot may lose its single-family exemption under AB 1482. Confirm with a California-licensed real estate attorney before assuming an ADU property qualifies for the single-family exemption.

Mistake 5 — Not tracking cumulative 12-month increases. AB 1482 allows two rent increases per 12-month period — but the cumulative total cannot exceed 8.8%. Two increases of 5% and 4% in the same 12-month window exceed the cap by 0.2% and constitute a violation. Each unit requires a 12-month cumulative tracking log, not just individual increase records.

Most AB 1482 compliance failures happen not because a landlord misunderstood the law but because they treated it as a one-time event rather than an ongoing operational system. AB 1482 compliance requires four active tracking obligations that reset or update on different cycles.

Per-unit rolling 12-month increase log. Each rental unit requires a log that tracks the date, amount, and cumulative total of every rent increase applied. A single unit with two increases per year requires four data points per cycle to remain verifiably compliant.

Annual CPI verification. The CPI percentage must be verified at BLS.gov each August before any rent increase notice is issued. The cap changes every year. Using last year's figure is not a safe default — it is a liability.

Documented calculation per notice. Every rent increase notice must be tied to a documented calculation showing the CPI source, the formula applied, and the resulting maximum. This is your primary defense in any dispute and the first thing a tenant's attorney will request.

Lease-version exemption audit. Exemption status must be tied to a specific lease version with the correct notice language verified at signing. An exemption that was valid under a prior lease is not automatically valid under a renewal if the notice language was not carried forward or updated to meet current city-specific requirements.

✓  If your rent increase exceeds 8.8% in any 12-month period, it is automatically non-compliant — regardless of CPI interpretation or negotiation with the tenant.

✓  If exemption language is missing from the lease at signing, the property is legally treated as covered — no exceptions, no retroactive correction.

✓  If two rent increases in the same 12-month period cumulatively exceed 8.8%, the second notice is invalid and the excess amount is an illegal overcharge.

✓  If your property is within City of San Diego limits and your eviction notice does not cite a Just Cause reason, it is defective from the first day of tenancy — not after 12 months.

✓  If your property has an ADU on the lot and you have not confirmed exemption status with legal counsel, do not issue an AB 1482-exempt rent increase notice.

Rule 1: If your single-family home or condo qualifies for an AB 1482 exemption but the exemption notice was not in the lease at signing, the property is covered — you cannot fix this retroactively. Include the proper notice at the next lease signing. For City of San Diego properties, use the city-specific form, not the state form alone.

Rule 2: If you are calculating a rent increase using last year's CPI figure, stop. Verify the current figure at BLS.gov before issuing any notice. The cap resets August 1 each year. An outdated calculation exposes you to actual damages, punitive damages, and attorney fees.

Rule 3: If your property is within City of San Diego limits, Just Cause eviction applies from day one of tenancy. Any no-cause termination generates legal liability regardless of tenancy length.

Rule 4: If you plan a No-Fault eviction within City of San Diego limits, relocation assistance is two months' rent. Paying one month when two are required is an independent violation of the local ordinance.

Rule 5: If your property has an ADU on the lot, confirm with a California attorney whether the single-family exemption applies before issuing any rent increase notice or exemption-based termination.

Rule 6: If your property manager is percentage-based, every AB 1482 rent increase you apply automatically increases your management cost. At $3,500/month under a 9% agreement, applying the full 8.8% cap adds $28/month — $336/year — in management fees with no change in service. A flat fee management agreement is unaffected by any rent increase applied.

☐  Confirmed AB 1482 coverage or exemption status for each property

☐  Verified exemption notice language — state form for county properties, city-specific form for City of San Diego, Chula Vista, and Imperial Beach

☐  Verified current San Diego CPI at BLS.gov before calculating any rent increase

☐  Confirmed all increases in the prior 12 months do not cumulatively exceed 8.8%

☐  Confirmed 30-day written notice for all increases at or below 10%

☐  Confirmed properties with ADUs on lot have verified exemption status with legal counsel

☐  Documented Just Cause reason for any pending tenancy terminations

☐  Confirmed correct relocation assistance amount for any No-Fault evictions

☐  Reviewed AB 628 appliance compliance for any upcoming lease renewals

What is the maximum rent increase in San Diego in 2026?

The maximum allowable rent increase for most covered San Diego County rental properties under California AB 1482 is 8.8% through July 31, 2026 — calculated as 5% plus the San Diego County CPI change of 3.8% from March 2024 to March 2025. The cap resets each August 1. Properties exempt from AB 1482 — including qualifying single-family homes and condos with the proper exemption notice in the lease at signing — are not subject to this limit.

Does AB 1482 apply to single-family homes in San Diego?

Single-family homes in San Diego may be exempt from AB 1482 if they are not owned by a corporation, REIT, or LLC, and the owner provided written exemption notice in the lease at signing. Without the notice in the lease at signing, AB 1482 applies regardless of property type. For City of San Diego properties, the city-specific exemption notice is required — the state notice alone is insufficient.

When does Just Cause eviction protection begin in San Diego?

Under California AB 1482, Just Cause eviction protection begins after 12 months of occupancy. Within the City of San Diego, the local Tenant Protection Ordinance requires Just Cause from the first day of tenancy. Landlords must apply whichever law provides greater protection to the tenant.

How do I calculate the AB 1482 rent cap for my San Diego property?

Multiply your current monthly rent by 0.088 to calculate the maximum allowable increase under the 2026 cap of 8.8%. A $2,800/month unit may be increased by up to $246/month. Verify the current CPI at BLS.gov each August before the cap resets. Document your calculation — CPI source, formula, and resulting maximum — as your primary protection in any dispute.

What properties are exempt from AB 1482 in San Diego County?

Common AB 1482 exemptions include properties built within the last 15 years (rolling — currently buildings with certificate of occupancy after January 1, 2010), single-family homes and condos not owned by a corporation, REIT, or LLC with a proper written exemption notice in the lease at signing, and owner-occupied duplexes where the owner lives on site. Properties with ADUs may lose the single-family exemption — confirm with a California attorney.

What are the consequences of violating AB 1482 in California?

Effective April 1, 2024, a landlord who raises rent above the AB 1482 cap can be liable for actual damages, punitive damages, and attorney fees. An illegal increase that forces tenant vacancy can result in $57,692 to $115,384 in property value impact at a 5.2% cap rate — substantially exceeding the revenue from the increase itself.

What is the difference between AB 1482 and the San Diego Tenant Protection Ordinance?

AB 1482 requires Just Cause for eviction after 12 months and one month's relocation assistance for No-Fault evictions. The San Diego Tenant Protection Ordinance requires Just Cause from day one and two months' relocation assistance. City of San Diego properties also require city-specific exemption language. Landlords must comply with whichever law provides greater protection.

Does AB 1482 apply to ADUs in San Diego?

Possibly. If a property has more than one unit on the lot — including an ADU or JADU — the single-family home exemption may not apply. The presence of an ADU can eliminate the exemption and make the primary unit subject to AB 1482. Confirm with a California-licensed real estate attorney before assuming an ADU property qualifies for the single-family exemption.

How does AB 1482 affect property management fees?

For percentage-based management agreements, AB 1482 rent increases automatically raise the manager's monthly fee. On a $2,800/month unit under an 8% agreement, applying the 8.8% cap adds approximately $20/month — $240/year — in management fees with no change in service. A flat fee management agreement is unaffected by any rent increase. See the full flat fee vs. percentage cost comparison.

Can I raise rent twice per year under AB 1482?

Yes. AB 1482 allows two rent increases per 12-month period — but the cumulative total cannot exceed 8.8% in 2026. Two increases of 4.4% each are permitted. Two increases totaling more than 8.8% are not permitted regardless of the size of each individual increase. Each unit requires 12-month cumulative tracking, not just individual increase records.

AB 1482 compliance is not optional — and it is not forgiving. In San Diego County, the difference between correct execution and a single documentation error is measured in five figures of liability and six figures of asset value. The law is not complicated. The formula is public, the thresholds are fixed, and the exemptions are clearly defined. What separates compliant owners from exposed ones is not knowledge of the law — it is the operational discipline to follow a documented process every time, on every unit, without exception.

About the Author
Scott Engle is a California licensed real estate broker (DRE #01332676) and principal of Realty Management Group, a flat fee San Diego property management company serving San Diego County since 2005. RMG manages single-family homes and multi-family properties with 1 to 16 units throughout San Diego County. Flat fee: $199/month for 1–3 units, $179/month per unit for 4–16 units — no leasing fees, no renewal fees, no maintenance markups.

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