Are You Exempt From California’s Tenant Protection Act (AB 1482)?

By Brian Bean | October 31, 2026

If You Never Disclosed to Your Renters in Writing, You Are Not Exempt

The following is not intended as legal advice. It is provided only for informational and entertainment purposes. Consult with an attorney for guidance on your specific situation.

By BRIAN BEAN
Rental Home Advocate | Property Manager | Real Estate Broker

A rental home investor who qualifies for an exemption from California’s Tenant Protection Act is not exempt until the renters are told so in writing. That’s a step that many self-managing landlords miss, and it can cost them the exemption, and possibly legal penalties and fees.

The Tenant Protection Act, better known as AB 1482, which took effect in 2020 caps rent increases statewide and limits the reasons an owner can end a tenancy. Nearly every rental property in California is covered, but some are exempt if they meet specific criteria.

What the Law Limits

On a property covered by the law, rent increases are limited to consumer price index rate of inflation, plus 5 percent, or 10 percent, whichever is lower, over any 12-month period. If the CPI for your county is 3 percent, for example, the ceiling would be 8 percent.

The law also limits the reasons why a property owner can ask a renter to move out:

  • Breach of the lease terms.
  • Owner or their immediate family are moving in themselves.
  • The home is being taken off the rental market.
  • A government agency or court order requiring the property be vacated.

The owner may also have to provide the renter relocation assistance equal to one month’s rent, or a waiver of the final month’s rent.

Exempt Is Not Automatic

Investors or their properties may be exempt from the law’s restrictions. Common reasons included:

  • The home is less than 15 years old.
  • The property is a single-family home or condo not owned in title in the name of a real estate investment trust, a corporation or an LLC with a corporate member.

There are several other possible exemptions. Check with your attorney and tax professional for guidance on your situation.

Covered Owners Disclose Too

Owners who are not exempt also must disclose that fact to their renters. Civil Code 1946.2 requires a statement informing renters that California limits rent increases and that a landlord must state an approved cause to end a tenancy.

So the question is not whether you owe your renters a disclosure. It is which one.

What a Miss Costs

Failure to comply could render a written termination notice void, which would put the owner back at the start of the process. A renter might also be able to sue for damages, attorney’s fees, etc.

If a property manager handles your rental, ask for a copy of the disclosure. If you manage it yourself, ask an attorney to draft one for you. If a renter is already in place and never received it, consult with your legal adviser about how to handle that situation.

For more information about the Tenant Protection Act and your rental property, contact us directly at Dream Big Property Management, 951-314-5402, brian@dreambigpm.com. You can also find valuable information on our website: dreambigpm.com.

Dream Big Property Management, CA DRE #02216670. Brian Bean, Broker, CA DRE #01346382.

Related Reading

Full Transcript

Transcript of the video above — Brian Bean, Broker/Owner and Rental Home Advocate, Dream Big Property Management. CA DRE #01346382. Lightly edited for readability.

Does California’s rent control law apply to your property? Well, whether it does or it doesn’t, you still must give your renters the same written disclosure because if you don’t, it could cost you.

Hi, I’m Brian Bean with Dream Big Property Management here in Riverside, California. Today, we’re getting into California’s Tenant Protection Act, but not just the ABCs of it. Today, we’re focusing on details that make all the difference in compliance with the law or even losing your exempt status. But before we go on, let’s pause for the obligatory reminder. I’m not an attorney. This is not legal advice. My goal here is to raise awareness about important topics for rental property investors so that you can then go forth, seek out advice from the appropriate experts, and have enough basic information to ask a few more pointed questions. Talk to your attorney about your specific situation.

Now, the Tenant Protection Act, you may know it as AB 1482. This law was created in 2019, took effect January 1st, 2020. It set a statewide rent cap as well as allowable reasons that a landlord can ask a renter to move. Essentially, all rental property in California is covered by this law unless you’re exempt. If you or the property are not exempt, rent increases are capped at the consumer price index rate taken annually, plus 5%, up to a maximum of 10%. For example, if the CPI for your county is 3%, your max rent increase for a home there that’s covered by the TPA would be 8% according to law.

Also, if you’re not exempt, if your renter has not breached their lease in any way, there are limited no fault reasons for which you can ask them to leave. And those include you or your immediate family is moving back in, the home’s being taken off the rental market, a government agency or a court has issued an order to vacate for some reason, or the home is in need of repairs that are so significant that no one could live there during the work. The work would take at least 30 days and a permit for the repairs would have to be obtained. Covered properties also have relocation assistance and notice requirements.

Now, if you and the property are exempt, there is no statewide cap on rent increases. Check with your local and county rules. However, there may be rent control laws in place and statewide notice requirements do still apply. Also, exempt properties are not limited to just those four no fault reasons to ask a renter to vacate. And they’re not required to provide relocation assistance equal to one month’s rent when they vacate.

So, how do you know if you’re exempt? Well, first you call your legal and your tax advisors because they are the ones who are going to help you make that determination. The most common exemptions that we see are for single family homes or condos that are either less than 15 years old or they’re not owned on title by a corporation, a real estate investment trust, or an LLC in which a corporation is a member.

Here’s the real kicker, though, and the reason for this video today. You and your property can qualify to be exempt from the California Tenant Protection Act. But if you don’t notify your residents of that exemption at the outset of the lease and with every renewal, you are not exempt. And here’s one more. Regardless of if you are exempt or not, you still may be required to disclose that fact to the renters. Otherwise, you could face penalties.

So, as we approach the end of the year, if your leases and rental agreements are coming up for renewal, this is your reminder that you need the written disclosure about the Tenant Protection Act. Here are some guidelines for that. First of all, the disclosure must state definitively whether the property and/or the owner is exempt from the law. Also, the form must provide details about why and how the rent might be increased and why and how the renters might be asked to vacate the property.

If you work with a professional property manager, they most likely have this disclosure already. Ask them for a copy just to be sure. If you manage your own property and you don’t have this disclosure, contact an attorney as soon as possible. Ask them to draft one for you or just hire a property manager and let them handle this type of stuff. And if you have a renter in place and you haven’t delivered this disclosure to them, do not ignore your duty. Check with your legal advisor on the best way to handle your situation.

If you fail to comply with the law, your written termination notice could be considered void, and that’s going to set you back to square one on the process. More importantly, your renters could sue you, which means legal cost and even more delays. But most importantly, make sure you’re in full compliance with the law because it’s the right thing to do for your own peace of mind and to ensure that your residents are being treated fairly. We’re dealing with people and their homes. Wouldn’t you want the same if you were in their situation?

If you have questions about anything you’ve heard here today, call me directly, 951-314-5402. I’m happy to share. You can also find valuable information on our website, dreambigpm.com. And if you found this information useful, please do us a favor, like and subscribe. It makes it easier for other people like you to find us as well. Don’t be accidental about your future. Be intentional to your success.

Posted in Long Term Rentals, Managing Your Property, New Laws, News, The Purposeful IE Investor and tagged , , , , , , , , , , , ,