The Rent Increase Mistake Landlords Keep Making

California's AB 1482 caps most rent increases at 5% + CPI or 10% max - and many landlords are still getting this wrong, creating legal exposure.

California's AB 1482 (the Tenant Protection Act of 2019) caps annual rent increases for covered units at 5% plus local CPI, with a maximum of 10%. Most multi-family residential properties built before 2005 and rented for more than 15 years are covered, with notable exceptions including single-family homes owned by individuals (with proper notice) and condos.

The most common mistake is not knowing whether your property is covered. Single-family home owners who believe they're exempt often are - but only if they've served the required AB 1482 exemption notice to their tenant. Without that notice, the protections may apply even to single-family rentals. If you're not sure, assume you're covered and consult an attorney.

The second most common mistake is calculating the increase incorrectly. The cap is 5% plus the percentage change in CPI for your region (not national CPI) - and it's calculated from the last rent increase, not from the base rent. Stacking multiple years of skipped increases does not allow a larger catch-up increase. Each year stands alone.

Notice requirements matter. Rent increases of 10% or less require 30 days written notice. Increases above 10% (which AB 1482 prohibits for covered units) would require 90 days. Getting the notice period wrong is a technical defect that can invalidate the increase. Serve notice correctly, document the service method, and keep copies.