Rent Stabilization

Rent stabilization, also known as rent control, refers to laws that limit how much and how often rent can be increased. For most rental housing in Orange County, the governing law is the Tenant Protection Act of 2019 (AB 1482), which caps rent increases statewide at covered properties. The Act is codified at Civil Code sections 1947.12 (rent limits) and 1946.2 (just cause) and remains in effect until January 1, 2030, unless extended.

The Rent Cap

At properties covered by AB 1482:

1. Annual limit — Gross rent increases over any 12-month period are limited to 5% plus the percentage change in the cost of living (CPI), or 10%, whichever is lower. When inflation runs above 5%, the ceiling is 10%.
2. Frequency limit — You may not increase rent more than two times in any 12-month period, and the combined total must stay within the annual cap.
3. Vacancy decontrol — When a tenant voluntarily vacates, abandons the unit, or is lawfully evicted, you may set the initial rent for the next tenancy at market rate. The cap applies only to increases after that initial rate is established.

Not sure whether the Act covers your property? Answer a few questions:

Other Limits to Keep in Mind

• Local ordinances — A city rent stabilization ordinance adopted before September 1, 2019 takes precedence over AB 1482 whether its limits are stronger or weaker; one adopted later applies only if it is more restrictive than the Act. Confirm whether your property's city has its own ordinance before noticing an increase.
• Price gouging — Under Penal Code section 396, during a declared state of emergency, rent increases above 10% are generally prohibited.
• No retaliation or discrimination — A rent increase may not be retaliatory (for example, in response to a repair complaint) or discriminatory.

Required Tenant Notice of the Act

Landlords at covered properties must provide tenants written notice of their rights under AB 1482. For leases entered into or renewed after July 1, 2020, the statutory language must appear as a lease addendum or as a separate signed notice.

See Notices for the notice periods rent increases require, and Exemptions for the properties the Act does not cover.

For more detailed information on AB 1482 and its implications for landlords, please consult with a legal professional or refer to the official California legislative resources.