Why Rent Control Confuses So Many Owners
Every week, we talk to landlords who don’t realize their property is (or isn’t) under rent control. It’s one of the most misunderstood aspects of owning rental property in California — and getting it wrong can lead to fines, rent refunds, or invalid notices.
California’s rent laws are layered. There’s the statewide AB 1482 (Tenant Protection Act), and then there are local rent control ordinances that can be even stricter. Understanding which one applies to your property is critical before you raise rent, issue notices, or make changes to tenancy.
Understanding AB 1482 (Statewide Rent Control)
AB 1482 applies to most California rentals and sets two main rules:
- Rent Cap: Annual rent increases are limited to 5% + local CPI, capped at 10% total in any 12-month period.
- Just Cause Eviction: After 12 months of tenancy (24 months if multiple tenants), landlords must have a legal reason to terminate the tenancy.
But not every property is covered — and that’s where many landlords get tripped up.
Commonly Covered:
- Multi-unit buildings built before 2005 (non-owner occupied).
- Single-family homes or condos owned by LLCs, corporations, or trusts (depending on how they’re structured).
Commonly Exempt:
- Single-family homes or condos owned by individuals or family trusts (not LLCs).
- Properties built
within the past 15 years (rolling exemption). - Owner-occupied duplexes (owner lives in one unit).
- Certain affordable housing or deed-restricted properties.
Even if your property qualifies for an exemption, here’s where most people make a costly mistake: you must serve a written Notice of Exemption to the tenant.
Until that notice is properly included in the lease (or served afterward), your property is treated as if it’s under AB 1482 — meaning rent caps and just-cause rules apply. Many owners, agents, and even some management companies miss this step completely.
If you’re unsure whether your lease includes the required notice, it’s worth checking immediately.
Local Rent Control: When State Law Isn’t the Final Word
In Los Angeles County, AB 1482 is just the beginning. Cities like Los Angeles, West Hollywood, Santa Monica, Beverly Hills, and unincorporated LA County all have their own stricter rent stabilization rules.
These often include:
- Lower rent increase limits (typically 3–4%).
- Mandatory property registration with the local housing department.
- Relocation assistance for certain “no-fault” evictions (like owner move-ins or major renovations).
A big misconception we see in unincorporated Los Angeles County is owners believing they can terminate tenancy “anytime with proper notice.” That’s not true for rent-controlled properties — even in unincorporated areas. In most cases, you’ll need a qualified “just cause” reason and may owe the tenant relocation fees.
These are serious costs that catch many landlords off guard.
Common Misconceptions That Cost Landlords Money
“My property is exempt.”
It might be — but unless you’ve served the Notice of Exemption, your property is treated as rent controlled under AB 1482 until that notice is properly given.
“I can end a tenancy anytime with 30 or 60 days’ notice.”
Not under rent control. For covered properties, you need a legally valid “just cause” reason, and in some cases, you’ll owe relocation assistance — especially in unincorporated LA County.
“My home isn’t under rent control because it’s a single-family property.”
That’s only true if it’s owned by an individual or family trust and you’ve provided the exemption notice. If it’s owned by an LLC or corporation, it’s likely covered.
“I raised rent 10% — that’s allowed, right?”
Most times, no. Local ordinances cap increases lower than AB 1482 allows. Always verify before serving any rent increase notice.
If you’re unsure which rent control laws apply to your property, you can look it up using ZIMAS (Zone Information Map Access System) at zimas.lacity.org. It’s a free tool that identifies your property’s location and zoning, which helps determine if it’s under the LA City Rent Stabilization Ordinance (RSO).
How Leasing Alert Protects Owners
We stay ahead of these regulations so our owners don’t have to. Every property we manage is reviewed for rent control status and properly documented. We verify exemptions, update lease language, and calculate rent adjustments using current CPI data — all to keep our clients compliant while maximizing returns.
We also advise owners before issuing any notice to ensure it meets local and state requirements. These small details make a huge difference — a missed disclosure or incorrect notice can wipe out months of income or result in legal exposure.
Why Partner With Leasing Alert?
We’re not a corporate management company juggling thousands of doors. We’re a local team that knows the laws, knows the neighborhoods, and answers the phone when you or your tenants call.
Our focus is keeping owners compliant, profitable, and protected — while maintaining great relationships with tenants who stay long-term. With strong vendor relationships, low turnover, and years of local experience, we manage each property as if it were our own.
And don’t forget — our 25% Referral Fee Program rewards you with 25% of the first year’s gross management fees for every referral you send our way. Your clients get white-glove management, and you strengthen your relationship for future sales.
Coming Up Next Week…
“Inside the Screening Process: How We Find Great Tenants That Stay”
We’ll show what goes into our tenant screening process, why it matters more than ever under California’s new laws, and how the right tenant can make or break an investment.
If you have a client unsure whether their property falls under rent control or needs help verifying its exemption, give me a call at 661.993.1233 or send me an email.
