Disclaimer: This article is for informational purposes only and does not constitute legal advice. California rent control law is subject to change. Consult a licensed real estate attorney for guidance specific to your property.
What Is AB 1482 — and Why Does 2030 Matter?
The California Tenant Protection Act of 2019 — AB 1482 — went into effect January 1, 2020 and is currently set to expire January 1, 2030. It applies to most residential rental properties built more than 15 years ago and does two things:
- Caps annual rent increases at 5% plus regional CPI, maximum 10%
- Requires just cause to terminate a tenancy after 12 months of occupancy
Current maximum allowable increases for August 2025 through July 2026:
- Alameda, Contra Costa, Marin, San Francisco, San Mateo counties: 6.3% (5% + 1.3% CPI)
- Santa Clara, Sonoma, Napa, Solano, Monterey counties: 7.7% (5% + 2.7% CPI)
These figures update every August. Verify current rates at caanet.org or with a property management professional.
The 2030 sunset was built into the original law by design — a deliberate compromise signaling that AB 1482 was intended to be temporary. That date is now approaching, and investors need to understand what it actually means.
What Changes If AB 1482 Expires
For properties not covered by a local rent control ordinance, two things change:
The statewide rent cap goes away. Owners would no longer face a state-mandated ceiling on annual rent increases.
The statewide just cause requirement goes away. Owners would no longer need a legally recognized reason to terminate a tenancy under state law.
This matters most for properties in cities without their own local rent control. For Bay Area properties already subject to stronger local frameworks — Oakland, Berkeley, San Jose, Hayward, and others — those local rules remain in place regardless of what happens to AB 1482.
What Stays in Place Regardless
The following do not change when AB 1482 expires:
- Costa-Hawkins remains in full effect — no expiration date
- Local rent control ordinances in Oakland, Berkeley, San Jose, Hayward, and other Bay Area cities continue to apply independently
- The 15-year rolling exemption for new construction continues year by year
The Legislative Wildcard: AB 1157
Investors should not assume AB 1482 will quietly disappear on January 1, 2030.
AB 1157 — introduced by Assemblymember Ash Kalra (D-San Jose) — is an active proposal that would make sweeping changes to the current framework. As drafted, it would:
- Lower the statewide rent cap from 5% + CPI (max 10%) to 2% + CPI (max 5%)
- Eliminate the 2030 sunset date, making rent caps and just cause requirements permanent
- Expand coverage to single-family homes, condos, and ADUs currently exempt under state law
AB 1157 stalled in 2025 but was reintroduced in January 2026 as a two-year bill and remains active. The outcome is not certain — but its existence means the 2030 sunset could be eliminated entirely and replaced with something more restrictive rather than simply expiring. This is a bill every Bay Area multifamily investor should be monitoring.
What This Means for Buyers and Sellers
Sellers should factor the regulatory uncertainty into exit timing. Properties subject only to AB 1482 — not covered by local rent control — carry a different long-term risk profile depending on whether the law sunsets or is replaced by something tighter. Evaluating that now rather than reactively is the smarter play.
Buyers need to underwrite for multiple scenarios. Modeling only today's regulatory environment may mean mispricing the risk embedded in the asset. A property's income trajectory looks different under a 2030 sunset than it does under a permanent 2% cap.
The R&Z Group works with multifamily investors across the Bay Area — from duplexes to 100+ unit apartment communities — and brings the market knowledge and financial precision to help clients understand how regulatory changes affect asset value, investment strategy, and timing. Whether you are evaluating a purchase or considering an exit, the regulatory picture is part of every conversation.
FAQ
What is AB 1482 and when does it expire?
AB 1482 is California's statewide rent cap and just cause eviction law. It caps annual increases at 5% plus regional CPI (max 10%) and requires just cause to end a tenancy after 12 months. It is set to expire January 1, 2030, unless the Legislature acts to extend or replace it.
What happens if AB 1482 expires?
Properties subject only to AB 1482 — not covered by local rent control — would no longer face a statewide rent cap or just cause eviction requirement. Properties in cities with local rent control ordinances, like Oakland, Berkeley, and San Jose, would continue to be governed by those local frameworks.
What is AB 1157?
AB 1157 is an active legislative proposal that would lower the rent cap to 2% plus CPI (max 5%), expand coverage to single-family homes and condos, and eliminate the 2030 sunset entirely. It stalled in 2025 and was reintroduced in January 2026 as a two-year bill. It remains active and should be monitored closely.
Does the expiration affect properties under local rent control?
No. Local ordinances in Oakland, Berkeley, San Jose, Hayward, and other Bay Area cities operate independently of AB 1482 and remain in effect regardless of what happens at the state level.
If you're looking to sell a multifamily property in San Jose, Oakland, Redwood City, San Mateo, Burlingame, Daly City, Hayward, Palo Alto, Menlo Park, Santa Clara, Sunnyvale, Berkeley, or Concord — or anywhere across the Bay Area and beyond — The R&Z Group is the multifamily real estate broker built for investors who expect results. Whether it's a duplex or a 100-unit apartment complex, from maximizing your sale price to navigating a 1031 exchange into a stronger-performing asset, we bring local market expertise, financial precision, and a proven track record to every transaction. Contact us today to discuss your multifamily investment goals.
Contact The R&Z Group:
Ray Rodriguez | (650) 405-0743 | Lic# 01999734
Tony Zizzo | (650) 770-8356 | Lic# 01962093
