Silicon Valley Rent Increases and AB 1482: What Landlords Need to Know

As property managers in the booming Silicon Valley rental market, we know that annual rent increases are a key part of maximizing rental income. When we take on a new building, our first step is to review current leases, compare market rents, and identify the last rent increase date. This ensures your property is earning at its full potential while staying compliant with California law.

Understanding AB 1482 and California Rent Caps

In 2020, California passed AB 1482, introducing statewide rent caps (commonly referred to as “rent control”) on certain residential properties. A rent cap limits the maximum percentage a landlord can increase rent within a 12-month period, protecting tenants while allowing landlords to adjust rents responsibly.

How the CPI Adjustment Works

The California Department of Industrial Relations calculates the annual CPI from April to April. The updated CPI is announced in April and goes into effect September 1 of that year, remaining in effect for 12 months. This ensures rent adjustments reflect current economic conditions.

Which Sacramento Properties Are Exempt from AB 1482?

Not every rental is subject to AB 1482. Common exemptions include:

Single-family homes, condos, or townhomes not owned by a corporation, REIT, or LLC with corporate ownership
Duplexes where one unit is owner-occupied
Mobile homes
Properties built in the last 15 years
Rentals owned by non-profit organizations
Properties already governed by local rent control ordinances

⚖️ Pro Tip: Always consult a real estate attorney or your county assessor to confirm whether your property qualifies for an exemption.

Why Annual Rent Increases Are Crucial for Sacramento Landlords

Even if your property is exempt from AB 1482, reviewing rents annually is essential.

The Silicon Valley rental market has seen rapid increases in market rents over recent years. At the same time, California laws have been designed to protect tenants from sudden, excessive rent hikes. If a landlord does not implement annual rent increases, they may lose years of potential income and fall behind the market.

By staying proactive, landlords can maximize rental income, remain compliant with AB 1482, and ensure their properties continue to generate strong returns.