How Much Can A Property Manager Raise Rent In California In 2022?

Posted by: TheGuarantors on August 9, 2022




In California, thanks to AB-1482, there is a statewide rent cap which means property managers are allowed to raise the rent by a maximum of 5% plus the local annual inflation rate or 10% altogether, whichever one is lower. For example, if the annual inflation rate is 3%, a property manager could raise the rent by 8%.

Now, that's all well and good, but the inflation rate in California in 2022 is a mind-blowing 9.1%. This means property owners could have increased rent by 14.1% had that 10% control not been put in place.

In this blog, we'll dive a little deeper into those numbers to learn more about AB-1482 and the rent cap, as well as telling you which properties are exempt from the controls.

What is AB-1482?

With approximately half the population of California currently living in a rented property, and the price of rent rising steadily over the last couple of decades, those in low-income households were feeling the pinch. Add into that equation a global pandemic and it's clear that the government needed to take action.

AB-1482, which went into effect on January 1 2020 and will last until January 1 2030, is essentially a rent control measure that ensures property managers in California cannot raise rent costs by more than 10%.

This ordinance was put in place to tackle the growing number of evictions happening throughout the state. From July 2020 through March 2021, authorities across the state's 58 counties completed over 7,500 evictions.

Are there exceptions to the rent cap?

While AB-1482 is a statewide initiative, this doesn't mean that every property in California will be covered under the rent control measures. So, what properties aren't covered?

Single-family homes

Generally speaking, houses in California will not be covered under the AB-1482 rent control. However, if the building is owned by a real estate investment trust (REIT), corporation, or LLC where at least one of the members is a corporation, then it will fall under the regulations.


An interesting difference in the law when it comes to duplexes is, that they are covered by the rent cap. However, if you as the property managers live on-site in one of the other properties, then the building becomes exempt.

Condos and new builds

If your property was built no more than 15 years ago then the laws of AB-1482 do not apply to it. So if you're thinking of building a new rental property in California, that too will be exempt from the ordinance.

Commercial buildings

The reason behind commercial buildings not being covered under the new statute is simple. Basically, you don't live in a commercial property, so they cannot be affected by AB-1482.

If your property falls into any of the above parameters then you, as the property owner, can charge whatever you like in rent.

What does this mean for property managers?

As a property manager in the state of California, you will need to be up to date on parameters of AB-1482. However, there are tools and resources available to help attract more renters if your property falls into one of the above exemption categories.

Our Security Deposit Replacement product makes it simple and inexpensive for renters to afford the up-front costs of your property by allowing them to lower move-in costs while ensuring you get the right levels of protection.

Plus, our Lease Guarantee product allows you to approve renters who may not otherwise meet traditional application requirements while lowering your risk exposure by ensuring you have the rent default protection you need to keep your bottom line strong.

Summing up

You can still expand your pool of renters even if your building falls outside of the rent cap guidelines. Get in contact with our team today for more information on how our products can help your portfolio work for you.