Understanding AB 1482: Maximum Allowable Rent Increases in Bay Area Counties

Understanding regulations such as AB 1482 rent control is crucial in commercial real estate. This law limits the extent to which landlords can increase rents, aiming to protect tenants from steep hikes. 

What is AB 1482?

AB 1482, also known as the Tenant Protection Act of 2019, is a law aimed at protecting renters in California from sudden rent increases and unjust evictions. It went into effect on January 1, 2020, and applies to most residential rental properties in the state.

The increase can reach a maximum of 10%, depending on factors such as the Consumer Price Index (CPI) increase.

Key Provisions of AB 1482

• Rent Cap: This law limits how much a landlord can increase the rent each year. The increase is capped at 5% plus the local rate of inflation, or 10% of the current rent, whichever is lower. This means if your current rent is $1,000, the most it can go up by is $50 plus inflation, or $100, whichever is less.
• Just Cause Eviction: Landlords must have a valid reason, or “just cause,” to evict tenants who have been living in the property for more than 12 months. Just causes include non-payment of rent, violation of lease terms, criminal activity, or if the landlord or their family wants to move into the unit.
• Relocation Assistance: If a landlord evicts a tenant for reasons that are not the tenant’s fault (like the landlord wanting to move in or making significant renovations), the landlord must provide relocation assistance, which is typically one month’s rent.

Maximum Allowable Increases by County

For Rent Increases that took effect between August 1, 2023, and July 31, 2024, below are the the AB 1482 maximum allowable increase by county. 

• San Mateo County's CPI increase translates into a maximum allowable rent increase within the AB 1482 framework. As of 2024, this is represented as 9.2%.
• Santa Clara County’s CPI adjustment impacts the maximum rent increase that landlords can apply under AB 1482. As of 2024, this is represented as 9.2%.
• Alameda County's CPI change directly influenced the maximum rent increase permitted by AB 1482. As of 2024, this is represented as 9.2%.
• Contra Costa County’s CPI fluctuations affect the maximum allowable rent increases as per AB 1482. As of 2024, this is represented as 9.2%.

Impact on Commercial Real Estate

Understanding these maximum allowable increases is vital for tenants, landlords, and investors. It ensures compliance with AB 1482 and helps maintain positive landlord-tenant relationships. Tenants benefit from stable rent increases, which promotes long-term occupancy and business sustainability.

Conclusion

The rent control measures of AB 1482 vary across Bay Area counties due to CPI fluctuations. Staying informed about these changes is essential to navigating commercial real estate transactions smoothly. 

Need help navigating these requirements? My team and I have connections to trusted vendors like contractors, structural engineers, attorneys, and architects. Let's ensure your compliance together. Call us now at (415) 875-0177 or send Hanna an email at [email protected] to get started.