AB 1482 is California's statewide rent cap and just-cause eviction law, enacted in 2019 and still in effect. For the period August 1, 2025 through July 31, 2026, it caps annual rent increases at 6.3% — 5% plus the 1.3% CPI. AB 1482 applies to most residential rentals in California that aren't already covered by a stricter local ordinance. Single-family homes, condos, and post-February-1995 construction are exempt (the Costa-Hawkins categories).
For LA multifamily owners, the first question is almost always whether AB 1482 or a stricter local regime applies. The answer depends on your building's age, location, and ownership structure.
AB 1482 applies to residential rentals that meet all of the following:
- Built before February 1, 1995 (the Costa-Hawkins cutoff)
- Not single-family homes or condominiums (with some exceptions)
- Not already covered by a local rent control ordinance with a stricter cap
For LA specifically, this means AB 1482 is the backstop for multifamily buildings outside LA City RSO coverage. Buildings built 1978-1994 that aren't in a stricter jurisdiction. Buildings outside LA City limits that don't have local rent control. Properties in cities without their own regime.
Five categories of exemption:
1. LA City pre-1978 buildings. These are covered by the LA City RSO, which is stricter than AB 1482 (4% ceiling starting July 2026 vs. AB 1482's 10% maximum).
2. Unincorporated LA County buildings. These are covered by the LA County RSTPO, which caps increases at 60% of CPI with 0-3% range — stricter than AB 1482.
3. Santa Monica, West Hollywood, Beverly Hills. These cities have their own rent control regimes.
4. Post-February 1995 construction. Exempt under Costa-Hawkins. These buildings fall under AB 1482 temporarily until rent is set at market, then are exempt on subsequent increases.
5. Single-family homes and condominiums. Exempt under Costa-Hawkins.
Annual cap (Aug 1, 2025 through Jul 31, 2026): 6.3% maximum (5% + 1.3% CPI). Recalculated each August 1 based on new CPI data.
Maximum cap ever: 10% (the cap formula is 5% + CPI, but capped at 10%).
Frequency limit: No more than two increases per 12-month period; combined cannot exceed annual cap.
If your building is in LA City and built before October 1, 1978, you're under RSO. AB 1482 doesn't apply separately — RSO is stricter and controls.
If your LA City building was built between October 1, 1978 and January 31, 1995, you're under AB 1482. Not RSO. The building is sometimes called "RSO-exempt" but "1978-1994 vintage" is more accurate — you're still under a rent cap, just a less restrictive one.
If your LA City building was built on or after February 1, 1995, you're Costa-Hawkins exempt. AB 1482 doesn't apply to rent increases after initial occupancy.
This distinction matters for sellers. A 1985 LA City building trades at different cap rates than both the 1965 RSO-covered building next door and the 2005 Costa-Hawkins exempt building across the street. Three regimes. Three cap rate profiles. Same submarket.
For a 1978-1994 LA City owner (AB 1482 only, no RSO):
This middle position is often misunderstood. Owners sometimes assume they're "rent controlled" when they're actually AB 1482-covered, which is meaningfully less restrictive. The distinction changes the cap rate, the sale pricing, and sometimes the whole sale thesis.
AB 1482 also includes just-cause eviction protections. For AB 1482-covered tenancies of 12+ months:
For sellers, the just-cause implications matter mostly for value-add thesis underwriting. Buyers planning turnover-based strategies have to model AB 1482 just-cause mechanics and relocation fee exposure.
| If your building is... | You're under... |
|---|---|
| LA City, pre-Oct 1, 1978 | LA City RSO (stricter than AB 1482) |
| LA City, Oct 1, 1978 – Jan 31, 1995 | AB 1482 |
| LA City, post-Feb 1, 1995 | Costa-Hawkins exempt (AB 1482 only at initial rent) |
| Unincorporated LA County, pre-1995 | LA County RSTPO (stricter than AB 1482) |
| Santa Monica, West Hollywood, Beverly Hills | That city's ordinance |
| Outside LA County, pre-1995, no local rent control | AB 1482 |
| Single-family home or condo | Costa-Hawkins exempt (AB 1482 only at initial rent) |
AB 1482 is the California regulatory backstop. Knowing whether it's your building's primary regime — or just a layered backstop to something stricter — is foundational to understanding your building's value, your rent growth trajectory, and your exit options.
Most LA multifamily owners don't know which regime actually applies to their building until they try to raise rents or sell. Getting clarity before that moment changes the decision quality materially.
Request a free evaluation — including a confirmation of exactly which regulatory regime applies to your building →
Related reading:
- LA Multifamily Legislation Tracker
- What the 2026 RSO Rewrite Actually Means for Your Apartment Building
- How Rent Control Affects Your Apartment Building's Sale Price in LA
Michael Sterman is Senior Managing Director Investments at Marcus & Millichap. $1.41 billion across 254 closed transactions.
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