Reminder: New Rent Caps in Effect Under AB 1482

As of August 1, 2024, the updated rent caps under AB 1482, the California Tenant Protection Act of 2019, are now in effect. These new limits, based on the latest Consumer Price Index (CPI) figures for all California counties, will govern how much landlords can increase rents over the next year. It’s essential for both tenants and landlords to be aware of these changes to ensure compliance and understanding of their rights and responsibilities.

Key Changes to Rent Caps

For San Francisco, the maximum rent increase for units covered under AB 1482 is now set at 8.8%. This cap is valid from August 1, 2024, to July 31, 2025, and reflects a combination of a 5% base increase plus a 3.8% adjustment based on the regional CPI. 

Understanding AB 1482

AB 1482 was enacted to provide statewide tenant protections, including limits on rent increases and just cause eviction requirements. The law aims to offer stability and predictability for tenants while ensuring landlords can maintain reasonable returns on their properties.

Key Provisions:

– Rent Increase Limit: Annual rent increases are capped at 5% plus the local CPI, or 10%, whichever is lower. 

– Just Cause Eviction: Landlords must provide a valid reason for terminating a tenancy, categorized as either “at-fault” or “no-fault” causes.

– Notice Requirements: Landlords must notify tenants in writing about the just cause and rent cap protections.

Units Covered and Exemptions

AB 1482 applies to most rental units in California, but there are specific exemptions:

– Units built in the past 15 years.

– Deed-restricted affordable housing.

– Certain dormitories.

– Owner-occupied properties with two units, where the owner lives in one of the units.

Eviction and Rent Increase Guidelines

For a tenancy to be terminated, landlords must have a valid “just cause,” such as non-payment of rent or lease violations. In cases of “no-fault” evictions, such as owner move-ins or substantial renovations, landlords are required to provide relocation assistance.

Rent increases are limited to no more than 5% plus the local CPI, with the current allowable increase in San Francisco set at 8.8%. No more than two increases are permitted within a 12-month period.

Compliance and Legal Advice

While the Rent Board provides information and guidance, it does not have enforcement powers. Tenants and landlords may need to seek legal advice or assistance from tenant advocacy organizations for disputes or enforcement actions related to AB 1482.

Staying updated with the latest changes under AB 1482 is crucial for both landlords and tenants to ensure compliance and protect their rights. At Real Property Management Select, we are committed to keeping you informed and helping you navigate these regulations effectively.

Real Property Management Select is dedicated to providing comprehensive property management services. Contact us today to learn more about how we can assist you in managing your rental properties effectively and efficiently.