Rent Stabilization

In 2019, California enacted the Tenant Protection Act (AB 1482), which established statewide rent stabilization and just cause eviction rules. The law applies throughout Orange County and remains in effect until January 1, 2030, unless extended.

Rent Increases

For covered units, rent may increase by no more than 5% plus the percentage change in the consumer price index (CPI), or 10%, whichever is lower, over any 12-month period. When inflation is above 5%, the ceiling is 10%.

A few other points about how the cap works:

• Rent may not be increased more than twice in any 12-month period, and the combined increases must stay within the annual cap.
• The cap applies to increases during your tenancy. When a unit turns over, the landlord may set the initial rent for the new tenancy at market rate.
• Covered landlords are required to give tenants written notice of their rights under the Act — for leases signed or renewed after July 1, 2020, as an addendum to the lease or a separate signed notice.
• Separately, during a declared state of emergency, California's price gouging law generally prohibits rent increases above 10%.

More information is available in the California Attorney General's tenant resources.

Exemptions

The Legislature exempted several types of units, in part to avoid discouraging new home construction. See Exemptions for the full list, which includes:

• Units that received a certificate of occupancy within the last 15 years
• Single-family homes and condominiums not owned by a corporation, LLC with a corporate member, or real estate investment trust — provided the required exemption notice was given
• Duplexes where the owner lives in the other unit