AB 1482 vs LA RSO: which rent cap applies to my building?
Inside the City of Los Angeles, a rental building with two or more units built on or before October 1, 1978 is under the RSO, which allows 3% from July 1, 2026 through June 30, 2027. Most other California rental housing more than 15 years old is under AB 1482, which caps any 12-month increase at 5% plus the change in the cost of living, or 10%, whichever is lower. A unit is not capped by both at once. AB 1482 exempts housing already under a stricter local rent ordinance, so the RSO governs an RSO unit.
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Answered by Shaya Lowenstein, a Los Angeles multifamily broker at Lyon Stahl Investment Real Estate, CA DRE 01942326, with 15 years in apartment buildings and land across Los Angeles County. His closed sales are published with addresses and recording dates, so anything claimed here can be checked against the county record.
| Question | LA RSO | AB 1482 (Civil Code 1947.12) |
|---|---|---|
| Annual increase | 3% for July 1, 2026 to June 30, 2027, within a 1% to 4% range LAHD sets each year | 5% plus the change in the cost of living, or 10%, whichever is lower, over any 12 months |
| Which buildings | City of LA rental property built on or before October 1, 1978 | Statewide, except housing with a certificate of occupancy issued within the previous 15 years and other listed exemptions |
| Just cause | RSO causes apply to RSO units; most other City of LA units are under the JCO after six months or the first lease expiry | After a tenant has occupied the unit for 12 months (Civil Code 1946.2) |
Source: LAHD, Rent Stabilization Bulletin: Allowable Rent Increase; LAHD, Owning a Rent Stabilized Property; LAHD, Just Cause For Eviction Ordinance (JCO); California Civil Code section 1947.12 (AB 1482 rent cap); California Civil Code section 1946.2 (AB 1482 just cause)
The 15-year rolling exemption.
AB 1482 exempts housing issued a certificate of occupancy within the previous 15 years. The window rolls, 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. Outside the City of LA the rules change at each city line, and AB 1482 is not always the cap that applies: Civil Code 1947.12(d)(3) exempts housing under a local rent control that holds annual increases below the state cap. That is how unincorporated LA County's ordinance works for its fully covered units, those on a property of two or more units with a certificate of occupancy issued on or before February 1, 1995; its partially covered units have no County cap, so AB 1482 can still reach them.
EDUCATIONAL ONLY, NOT LEGAL OR TAX ADVICE. RATES, THRESHOLDS AND ORDINANCES CHANGE, AND SEVERAL OF THE FIGURES HERE DEPEND ON FACTS SPECIFIC TO YOU. CONFIRM ANYTHING YOU PLAN TO ACT ON WITH YOUR OWN ATTORNEY OR CPA, OR WITH THE AGENCY THAT SETS IT.
/// SOURCES
- LAHD, Rent Stabilization Bulletin: Allowable Rent Increase
- LAHD, Owning a Rent Stabilized Property
- LAHD, Just Cause For Eviction Ordinance (JCO)
- California Civil Code section 1947.12 (AB 1482 rent cap)
- California Civil Code section 1946.2 (AB 1482 just cause)
- LA County Department of Consumer and Business Affairs, RSTPO Rent Stabilization Bulletin: Annual Allowable Rent Increase, revised July 6, 2026
What is the AB 1482 cap right now?
5% plus the percentage change in the regional cost of living, or 10%, whichever is lower, measured against the lowest rent charged in the prior 12 months. The cost-of-living figure varies by metro and year, so verify the current LA County figure before serving increase notices.
Does AB 1482 have just-cause eviction rules?
Yes. After a tenant has occupied the unit for 12 months, Civil Code 1946.2 requires just cause to terminate. A no-fault termination under that statute owes relocation assistance or a rent waiver equal to one month's rent. Inside the City of LA, the Just Cause Ordinance applies sooner and LAHD's relocation schedule sets the amount.
SHAYA LOWENSTEIN · LYON STAHL INVESTMENT REAL ESTATE · DRE #01942326 · (323) 944-2221