Every August 1, the legal ceiling on rent increases resets in California. For the period running through July 31, 2026, most covered units are capped at 5% plus your region's change in CPI, with a hard maximum of 10% (Cal. Civ. Code § 1947.12). Go past that number, even accidentally, and the excess is void; in cities with their own ordinances you can owe it back with penalties. California regulates the price of housing, not just the process, so this guide starts with rent regulation and works outward to deposits, entry, and evictions.

How the AB 1482 cap works, and which buildings escape it

The Tenant Protection Act of 2019, which everyone calls AB 1482, does two things to covered housing. It caps annual increases at 5% plus regional CPI or 10%, whichever is lower, measured against the lowest rent charged in the prior 12 months (Civ. Code § 1947.12). And once a tenant has lawfully occupied the unit for 12 months, it requires just cause to end the tenancy (Civ. Code § 1946.2). You can't split the year's increase into more than two bumps, and vacancy decontrol survives: when a tenant leaves voluntarily, you may reset to market.

The exemptions matter as much as the rule. Housing built within the last 15 years is exempt on a rolling basis, so a 2013 building becomes covered in 2028. Single-family homes and condos are exempt only when the owner is not a corporation, REIT, or LLC with a corporate member, and only when the lease carries the required exemption notice. Skip that paragraph of boilerplate and your exempt house is, in practice, covered. Owner-occupied duplexes stay out entirely. The statute sunsets January 1, 2030, unless extended.

On top of the state cap, dozens of cities run stricter rent stabilization: Los Angeles, San Francisco, Oakland, San Jose, Santa Ana, and more. Where local law is tougher, local law wins, so check the city ordinance before touching the rent. The current numbers sit on one page in the California quick-reference sheet. If you want to see the only other West Coast state running a statewide formula, compare the Oregon guide: Oregon's cap works differently and has no 10% floor stacking rule.

Raising rent: 30 days' notice, or 90 once you cross 10%

On a month-to-month tenancy, an increase of 10% or less (counting every increase in the trailing 12 months) takes at least 30 days' written notice. Anything above 10% takes 90 days (Civ. Code § 827). Mailing the notice adds five days. For AB 1482-covered units the 90-day tier rarely comes up, since the cap usually keeps you under 10% anyway, but it still bites on exempt single-family rentals.

Late fees are the quieter trap. California sets no statutory late-fee cap and no mandatory grace period. Instead, a late fee is treated as liquidated damages, enforceable only if actual damages would be impracticable to calculate and the fee is a reasonable estimate of them (Civ. Code § 1671(d)). Courts strike fees that function as penalties. Keep the fee small, tie it to real administrative cost, and write it into the lease; an unwritten fee is uncollectible.

Security deposits after AB 12: one month, 21 days, mandatory photos

Taking the deposit

Since July 1, 2024, the deposit is capped at one month's rent, furnished or not (Civ. Code § 1950.5, as amended by AB 12). One carve-out survives: a landlord who is a natural person, or an LLC made up entirely of natural persons, and who owns no more than two residential rental properties totaling four or fewer units, may collect up to two months. Even that exception vanishes when the applicant is a service member; they never owe more than one month. For contrast, two months is still the default cap up north in Alaska, while Hawaii matches California's one-month limit.

No state statute requires paying interest on deposits, but several cities, including San Francisco, Berkeley, and Los Angeles, do.

Returning it

You have 21 calendar days after the tenant vacates to return the balance with an itemized statement (Civ. Code § 1950.5(g)). Any single deduction over $125 needs receipts or invoices attached; if the work isn't finished, send a good-faith estimate and follow with receipts within 14 days of completion. Deductions can cover unpaid rent, damage beyond ordinary wear and tear, and cleaning back to move-in condition. Ordinary wear and tear is never deductible.

AB 2801 added photo duties. Since April 1, 2025, you must photograph the unit at move-out before any cleaning or repairs, and again after the work that you deduct for. For tenancies starting July 1, 2025 or later, you also photograph at move-in. The pictures go to the tenant along with the itemized statement. You must also offer an initial inspection in the final two weeks of the tenancy so the tenant can cure problems before they become deductions. Bad-faith withholding costs you actual damages plus a statutory penalty of up to twice the deposit. Rentari's compliance calendar tracks the 21-day clock and the photo checkpoints state by state, which beats running this from memory.

Entering the unit: 24 hours in writing, business hours only

Outside a genuine emergency or abandonment, you may enter only for the reasons listed in Civ. Code § 1954: repairs, agreed services or improvements, showings to buyers or prospective tenants, and legally required inspections. Notice must be reasonable and in writing, and 24 hours is presumed reasonable; mail it and the presumption stretches to six days. Entry happens during normal business hours unless the tenant agrees otherwise. There's a purpose-built exception for sales: once you give written notice that the property is on the market, oral notice 24 hours ahead covers showings for the next 120 days.

Ending a tenancy: just cause, relocation pay, and the 3-day notice

For covered units, once a tenant hits 12 months you need just cause to terminate (Civ. Code § 1946.2). At-fault causes include nonpayment, a material breach that survives a chance to cure, nuisance, and criminal activity. No-fault causes, meaning owner or family move-in, withdrawal from the rental market, a government order, or a substantial remodel, obligate you to pay one month's rent in relocation assistance or waive the last month.

SB 567 tightened the no-fault lanes on April 1, 2024. A move-in now requires the owner or qualifying relative to take occupancy within 90 days and live there for 12 continuous months. A substantial remodel means permitted structural, electrical, plumbing, or mechanical work, or hazardous-material abatement, that can't be done safely with the tenant in place and requires at least 30 days out. Paint and new flooring don't qualify. Getting it wrong exposes you to actual damages, potential treble damages, and attorney fees.

Nonpayment starts with the 3-day notice to pay rent or quit, and those three days exclude Saturdays, Sundays, and judicial holidays (Code Civ. Proc. § 1161(2)). The notice may demand rent only: no late fees, no utility charges. A curable lease violation gets a 3-day notice to perform or quit. On exempt units rented month to month, termination takes 30 days' notice under one year of tenancy and 60 days after a year (Civ. Code § 1946.1). If the notice runs out, the next step is an unlawful detainer case, then the sheriff. Never self-help: changing locks or cutting utilities runs $100 per day of violation with a $250 minimum, plus actual damages (Civ. Code § 789.3). The judicial branch publishes current unlawful detainer forms and timelines at selfhelp.courts.ca.gov.

Habitability now includes the stove, plus the disclosure stack

Civ. Code § 1941.1 sets the habitability floor: weatherproofing, working plumbing with hot and cold water, heat, safe wiring, no vermin, functioning locks. AB 628 adds a working stove and refrigerator for leases signed, amended, or renewed on or after January 1, 2026, with a written opt-out if the tenant prefers to supply their own refrigerator and a 30-day duty to fix or replace recalled appliances. When repair demands go nowhere, a tenant can repair and deduct up to one month's rent, at most twice in any 12 months (Civ. Code § 1942), withhold rent over serious defects, or call the local code inspector.

Disclosures worth a standing checklist: the federal lead-paint pamphlet for pre-1978 housing; the bed bug information notice (Civ. Code § 1954.603); the state mold booklet; the Megan's Law database notice in the lease (Civ. Code § 2079.10a); flood-hazard-zone status (Gov. Code § 8589.45); known former military ordnance within a mile; any demolition permit you've applied for; the AB 1482 exemption or addendum language; and, since April 1, 2025, a written offer to report positive rent payments to a credit bureau (Civ. Code § 1954.07; natural-person landlords with 15 or fewer units are exempt). California-specific lease and notice templates live in the forms library.

What changed in 2024, 2025, and 2026

  • April 1, 2024: SB 567 tightened owner move-in and remodel evictions and added treble-damage exposure.
  • July 1, 2024: AB 12 cut the deposit cap to one month's rent.
  • April 1, 2025: AB 2801 move-out and post-repair photos; AB 2747 positive rent reporting offers began.
  • July 1, 2025: AB 2801 move-in photos for new tenancies.
  • January 1, 2026: AB 628 stove and refrigerator requirement; AB 414 electronic deposit-return options; AB 1414 lets renewing tenants opt out of bundled third-party subscription charges like internet; SB 610 sets debris, rent-pause, and right-of-return duties after declared disasters.

Questions California landlords keep asking

How much can I raise the rent on a covered unit right now?

Through July 31, 2026: 5% plus your region's CPI change, capped at 10%, measured against the lowest rent of the past 12 months (Civ. Code § 1947.12). If the unit sits in a rent-stabilized city, the local cap is usually lower and controls.

Can I still collect two months' deposit as a small landlord?

Only if you're a natural person (or all-natural-person LLC) with no more than two rental properties and four total units, and the tenant is not a service member (Civ. Code § 1950.5). Everyone else is at one month.

What happens if I miss the 21-day deposit deadline?

You lose the right to keep any of it, and bad-faith retention adds a penalty of up to twice the deposit on top of actual damages. Send the itemized statement, receipts, and required photos on time even if the refund itself is small.

Is my single-family rental exempt from the rent cap?

Usually, but only if you're not a corporate owner and the lease includes the exact AB 1482 exemption notice. Without that language the exemption doesn't apply, and new construction loses its separate exemption 15 years after the certificate of occupancy.

Do the 3 days on a pay-or-quit notice include the weekend?

No. Saturdays, Sundays, and judicial holidays don't count (Code Civ. Proc. § 1161). Serve on a Thursday and the tenant may have until the following Tuesday.

This article is general information for California landlords, not legal advice. Statutes get amended and cities add their own rules, so before acting on a deadline or notice period, read the current statute text or ask a California landlord-tenant attorney.