California Rent Control, AB 1482, Increases & Late Fees
California Assembly Bill 1482, known as the Tenant Protection Act of 2019, established statewide rent control for the first time in California history. Under Civil Code Section 1947.12, covered properties are limited to annual rent increases of no more than 5 percent plus the local Consumer Price Index (CPI), with a maximum cap of 10 percent total regardless of inflation.
The law applies to most residential rental properties that are more than 15 years old, including apartments, condominiums, and single-family homes unless specifically exempted.
Exemptions include:
The rent cap applies to the total rent increase over any 12-month period, preventing landlords from implementing multiple smaller increases that cumulatively exceed the limit. Landlords must provide at least 30 days written notice for increases of 10 percent or less, or 90 days notice for increases greater than 10 percent.
Determining whether your California rental is covered by rent control requires checking both statewide protections under AB 1482 and any local rent control ordinances that may apply.
For AB 1482 coverage, your rental is likely covered if:
Many California cities have their own rent control laws that may be stricter than AB 1482, including San Francisco, Los Angeles, Oakland, Berkeley, San Jose, and others.
To verify your property's status:
If your landlord claims an exemption but has not provided proper written notice, you may still be entitled to AB 1482 protections.
If your California landlord raises rent beyond the legal limit under AB 1482 or local rent control, you have several options to contest the increase:
Under AB 1482, tenants can recover the excess rent charged plus reasonable attorney fees. Document all rent payments, notices, and communications. Be aware that retaliating against tenants for exercising legal rights is prohibited under Civil Code Section 1942.5.
California law requires landlords to provide written notice before increasing rent, with the notice period depending on the size of the increase:
These notice requirements apply to month-to-month tenancies under California Civil Code Section 827. For tenants with fixed-term leases, the landlord generally cannot increase rent until the lease expires unless the lease specifically allows for increases during the term.
The notice must be properly served under California law through:
The notice should clearly state the new rent amount, the effective date, and how the increase was calculated if the property is subject to rent control. If proper notice is not given, the rent increase is invalid until proper notice is provided and the required time period has passed.
No, California law limits late fees to amounts that represent a reasonable estimate of the landlord's actual costs resulting from late payment. Under Civil Code Section 1671, late fees in rental agreements are considered liquidated damages and must not be structured as penalties.
Courts have generally found that late fees exceeding 5 to 6 percent of the monthly rent may be considered unreasonable and unenforceable penalties. Additionally, landlords cannot charge late fees unless the lease specifically authorizes them.
Key points about late fees:
If you are charged what appears to be an excessive late fee, you may challenge it by paying your rent without the fee and disputing the charge in writing. In an eviction proceeding, you can argue that excessive late fees are unenforceable. Some cities with rent control have additional restrictions on late fees.
California Civil Code Section 1950.5 strictly limits security deposits for residential rentals. The law was updated effective July 1, 2024, by Assembly Bill 12:
These limits apply regardless of what the deposit is called, whether security deposit, cleaning fee, pet deposit, or any other name. Landlords cannot charge non-refundable deposits or fees, as all deposits must be refundable.
Deposits can only be used for:
Within 21 days of the tenant moving out, landlords must either return the full deposit or provide an itemized statement explaining any deductions. Violations entitle tenants to recover wrongfully withheld amounts plus potential statutory penalties.
Generally, your landlord cannot increase rent during a fixed-term lease in California unless the lease agreement specifically includes a provision allowing for rent increases. When you sign a lease for a specific period, such as one year, the rent amount is typically fixed for that entire term.
Important considerations:
For month-to-month tenancies, landlords can increase rent at any time with proper written notice, typically 30 days for increases of 10 percent or less.
If your landlord attempts to increase rent mid-lease without contractual authorization, you can refuse to pay the increase and continue paying the agreed-upon lease amount. Document the original lease terms and any communications about the attempted increase in case of disputes.
When you pay rent late in California, several consequences may follow depending on your lease terms and how late the payment is:
The 3-day notice gives you three days (excluding weekends and court holidays) to pay the full amount of rent owed or vacate. This notice can only demand rent, not late fees or other charges. If you pay within the three-day period, the landlord must accept payment and cannot proceed with eviction.
Late payment also creates a record that may affect future rental applications. Repeated late payments, while not grounds for immediate eviction under just cause requirements, may eventually support an eviction for breach of lease terms after proper notice.
Yes, you can always attempt to negotiate rent with your landlord in California. Several strategies may improve your success:
Timing matters:
Prepare your case:
When negotiating:
Even in rent-controlled areas, landlords are entitled to the maximum allowable increase, so negotiations may focus on whether to implement the full permitted increase.
Local rent control ordinances in California cities often provide stronger tenant protections than the statewide AB 1482 law. When both apply, the stricter regulation generally controls.
AB 1482 establishes a floor of protection, capping rent increases at 5 percent plus CPI (maximum 10 percent) and requiring just cause for eviction after 12 months of tenancy.
Local ordinances may differ in several ways:
Cities with local rent control include San Francisco, Los Angeles, Oakland, Berkeley, and San Jose. Research your city's specific provisions in addition to AB 1482 protections.
Generate a professional demand letter to contest an unlawful rent increase with proper legal citations.
Create Your Letter