📋 Overview

You've received a demand letter claiming you charged rent above the legal limit. California has two overlapping rent control systems: the statewide Tenant Protection Act (AB 1482) and local rent control ordinances in cities like San Francisco, Los Angeles, Oakland, and others. Understanding which applies is crucial to your response.

⚠ Two Systems Apply

AB 1482 applies statewide to most rentals, but local ordinances may impose stricter limits. You must comply with both.

🕒 Know Your Exemptions

Many properties are exempt: single-family homes (if notice given), new construction (under 15 years), owner-occupied small buildings, etc.

💰 Refund Obligation

If you overcharged, you may owe refund of excess rent, plus damages depending on the jurisdiction and circumstances.

AB 1482 Rent Cap (Statewide)

  • Annual limit - 5% plus local CPI, or 10% total (whichever is lower)
  • Notice required - 30 days for increases under 10%; 90 days for 10%+
  • Applies to - Most residential rental properties over 15 years old
  • Exemptions - Single-family (with proper notice), new construction, owner-occupied 2-4 units

Local Rent Control (Examples)

  • San Francisco - 60% of CPI increase annually (often 1-3%)
  • Los Angeles - Typically 3-8% based on CPI
  • Oakland - CPI-based, typically 2-5%
  • Berkeley - Annual adjustment by Rent Board
$450
Attorney Response on Letterhead

Case review, exemption analysis, proper rent calculation verification, and professional response letter.

Schedule Review

🔍 Evaluate the Claim

Determine which rent control system applies and whether your property is exempt.

Exemption Status Check

Exemption Type Requirements Applies To
Single-family home Written notice per CC 1947.12(d)(5) AB 1482 only
New construction Certificate of occupancy within 15 years AB 1482 only
Owner-occupied Owner lives in one unit of 2-4 unit building AB 1482 only
Affordable housing Deed-restricted affordable housing Both systems
Post-1979 construction Certificate of occupancy after 1979 Some local ordinances

📄 Property Classification

  • ✓ Certificate of occupancy date
  • ✓ Property type (SFH, condo, multi-unit)
  • ✓ Local rent control jurisdiction
  • ✓ Exemption notice provided (if claimed)

📝 Rent History

  • ✓ Base rent when tenant moved in
  • ✓ Each rent increase with dates
  • ✓ Notice provided for each increase
  • ✓ Applicable CPI for each period

⚠ Calculate Carefully

Rent increases are calculated from the previous lawful rent, not from what you actually charged. If you previously overcharged, subsequent "legal" increases may still be illegal because they're based on an unlawfully high starting point. This can compound liability over time.

🛡 Your Defenses

Several defenses may apply to rent overcharge claims.

Property Is Exempt

Your property falls under one of the statutory exemptions (new construction, single-family with proper notice, etc.). You must have provided required notices for exemption to apply.

When to use: Property qualifies for exemption and you can prove it.

Correct Rent Calculation

Your rent increase was actually within the legal limit. Tenant may have miscalculated the applicable CPI or misunderstood the base rent.

When to use: You can demonstrate proper calculation with CPI data and rent history.

Banking of Rent Increases

Some local ordinances allow "banking" - if you didn't raise rent to the maximum allowed in prior years, you can apply unused increases later.

When to use: Local ordinance permits banking and you have documented rent history.

Capital Improvement Passthrough

Many rent control ordinances allow landlords to pass through costs of capital improvements. These may increase the allowable rent beyond the standard cap.

When to use: You made qualifying improvements and followed proper passthrough procedures.

Voluntary Agreement

Tenant agreed to the rent amount in writing and paid without objection for an extended period. (Note: This defense is weak in strong rent control jurisdictions.)

When to use: May limit recovery period but usually doesn't excuse violation.

🚨 Weak Defenses

  • "I didn't know about rent control" - Ignorance is not a defense
  • "Tenant agreed to pay" - Rent control rights cannot be waived
  • "Market rate is higher" - Rent control overrides market rates
  • "My mortgage increased" - Not a basis for exceeding the cap

⚖ Response Options

Choose your response based on whether the overcharge occurred and your exemption status.

Verify and Correct

Calculate the lawful rent, refund any overcharge, and reduce rent going forward. This is often the best path if you did overcharge.

  • Ends the dispute
  • Shows good faith
  • May avoid penalties

Assert Exemption

If your property is exempt, provide documentation proving exempt status. Ensure you gave any required notices.

  • No refund required
  • May need documentation
  • Check notice requirements

Dispute Calculation

If tenant's calculation is wrong, provide correct rent history and CPI data showing your increase was lawful.

  • No refund if correct
  • Need documentation
  • May need expert review

Negotiate Settlement

If there's ambiguity, negotiate a settlement. This may include partial refund and agreement on going-forward rent.

  • Avoids litigation
  • Creates certainty
  • May include release

📊 Overcharge Calculation Example

AB 1482 property with 8% increase when limit was 5%+CPI (7%)

Base rent $2,000
Your rent increase (8%) $2,160
Maximum lawful rent (7%) $2,140
Monthly overcharge $20
If 12 months at overcharge $240
MINIMUM REFUND OWED $240+

💡 Local Enforcement Varies

In cities with rent boards (SF, LA, Oakland), tenants may file complaints directly. These boards can order rent reduction, refunds, and sometimes penalties. In cities without rent boards, tenants must sue in court. Check your local jurisdiction's enforcement mechanism.

📝 Sample Responses

Customize these response templates for your situation.

Asserting Exemption Status
I am in receipt of your demand letter dated [DATE] claiming rent overcharge at [PROPERTY ADDRESS]. This property is exempt from the rent increase limitations of Civil Code 1947.12 (AB 1482) because [REASON - e.g., "it is a single-family home and you were provided the required notice of exemption under CC 1947.12(d)(5) on [DATE]" or "the certificate of occupancy was issued on [DATE], within the past 15 years"]. Enclosed please find [documentation - exemption notice, certificate of occupancy, etc.] confirming the exempt status of this property. As an exempt property, there is no cap on rent increases beyond what is stated in your lease. The rent charged is lawful, and I respectfully deny your claim for refund.
Correcting Calculation Error
I have reviewed your rent overcharge claim dated [DATE] for [PROPERTY ADDRESS]. After careful review, I believe there may be an error in your calculation. The lawful rent increase under [AB 1482 / local ordinance] is calculated as follows: - Base rent as of [DATE]: [$AMOUNT] - Maximum increase: 5% + CPI of [X%] = [Y%] - Maximum lawful rent: [$AMOUNT] - Current rent charged: [$AMOUNT] As you can see, the current rent is within the legal limit. I have attached [CPI documentation, rent history] supporting this calculation. Please review and let me know if you have additional questions about how the increase was calculated.
Acknowledging Overcharge and Offering Refund
I am responding to your demand dated [DATE] regarding rent at [PROPERTY ADDRESS]. After reviewing the applicable rent increase limits and my records, I acknowledge that the rent increase exceeded the lawful amount. I apologize for this error. The lawful rent should be [$AMOUNT] per month. Effective [DATE], I am reducing your rent to this amount. Additionally, I owe you a refund of [$AMOUNT] for the [X] months during which rent was overcharged. Enclosed is a check for this amount. I trust this resolves the matter. Please confirm receipt of this letter and the enclosed refund.
Settlement Offer
I have reviewed your rent overcharge claim dated [DATE] for [PROPERTY ADDRESS]. While I believe there are questions about the calculation, in the interest of resolving this matter amicably, I am prepared to offer the following settlement: 1. Rent reduction to [$AMOUNT] effective [DATE] 2. Refund of [$AMOUNT] for past overcharges 3. Mutual release of all claims related to rent amounts This offer is contingent on execution of a written settlement agreement. Please respond within [14] days if you wish to accept. If you prefer to pursue this through [the Rent Board / court], I will present my position there, including [exemption claim / calculation dispute / etc.].

🚀 Next Steps

Step 1: Identify Applicable Law

Determine if AB 1482, local rent control, or both apply. Check exemption status.

Step 2: Calculate Lawful Rent

Use base rent and applicable CPI to calculate maximum lawful increases.

Step 3: Gather Documentation

Collect lease, rent increase notices, exemption notices, certificate of occupancy.

Step 4: Respond Appropriately

Either correct the overcharge or dispute with supporting documentation.

If They File with Rent Board

  • Respond to the petition - Submit your answer with all supporting documentation
  • Attend the hearing - Present your case to the hearing officer
  • Be prepared to show - Rent history, notices given, exemption documents if applicable
  • Appeal if necessary - Most boards have appeal procedures

Preventive Measures

  • Track CPI annually - Know the applicable increase percentage each year
  • Document all notices - Keep copies of exemption notices and rent increase notices
  • Use proper notice timing - 30 days for under 10%, 90 days for 10%+
  • Consult before increasing - When in doubt, verify the calculation before sending notice

Get Professional Help

Rent control calculations are complex. Get an attorney to review your situation and respond professionally.

Schedule Consultation - $450

California Resources

  • Civil Code 1947.12: leginfo.legislature.ca.gov - AB 1482 rent cap
  • Local Rent Boards: SF (sfrb.org), LA (hcidla.lacity.org), Oakland (oaklandca.gov/rent)
  • CPI Data: Bureau of Labor Statistics (bls.gov) - For calculating increases