AB 1482 vs LA RSO: which rent cap applies to my building?
If your building is inside City of LA limits with 2+ units and a pre-October-1978 certificate of occupancy, the LA RSO applies — its cap is stricter and local. If the building is newer than that (but at least 15 years old) or located in a California city without local rent control, the statewide cap AB 1482 applies instead: 5% plus local CPI, with a hard ceiling of 10% per year. A building is never governed by both at once — the stricter local ordinance wins.
The 15-year rolling exemption.
AB 1482 exempts buildings with a certificate of occupancy issued within the last 15 years — a rolling window, so a 2012 build that was exempt in 2026 comes under the cap in 2027. Single-family homes and condos are generally exempt too when owned by individuals (not corporations or REITs) and properly noticed.
Why this matters when buying or selling.
Regulation determines how fast in-place rents can reach market. An AB 1482 building with 25% loss-to-lease can close the gap in roughly three years of maximum increases; an RSO building mostly closes it on turnover. Same loss-to-lease, very different underwriting, and a different buyer pool for each. Long Beach and unincorporated LA County also layer their own local rules on top of state law.
What is the AB 1482 cap right now?
5% plus regional CPI, capped at 10% total per 12 months. CPI varies by metro and year — verify the current figure for LA County before serving increase notices.
Does AB 1482 have just-cause eviction rules?
Yes — after 12 months of tenancy, AB 1482 requires just cause to terminate, and some no-fault terminations (like owner move-in or withdrawal from the rental market) require relocation assistance of one month's rent.
SHAYA LOWENSTEIN · LYON STAHL INVESTMENT REAL ESTATE · DRE #01942326 · (323) 944-2221