California’s Tenant Protection Act of 2019 (AB 1482) significantly changed landlord-tenant law by imposing statewide rent caps and just cause eviction requirements. While many landlords know that certain single-family homes and condominiums are exempt, far fewer realize that an otherwise exempt property can lose its exemption if the required statutory notice is not properly provided to the tenant.
Failure to provide this disclosure can have serious consequences, including subjecting the property to statewide rent control and just cause eviction requirements.
What Is AB 1482?
AB 1482 created two major statewide tenant protections:
- Civil Code § 1947.12 — statewide rent increase limitations (generally 5% plus CPI, not to exceed 10% annually); and
- Civil Code § 1946.2 — statewide “just cause” eviction requirements after the applicable tenancy period.
Unless a property qualifies for an exemption, these laws generally apply throughout California, subject to local ordinances that may provide greater tenant protections.
Which Properties Qualify for the Single-Family Home Exemption?
One of the most important exemptions applies to residential property that is separately alienable from any other dwelling unit. Civil Code sections 1947.12(d)(5) and 1946.2(e)(8) exempt: “Residential real property that is alienable separate from the title to any other dwelling unit…”
This generally includes:
- Single-family residences
- Individually owned condominiums
However, merely owning a single-family residence is not enough. The exemption only applies if both statutory requirements are satisfied.
Requirement No. 1: The Owner Must Meet Ownership Requirements
The exemption does not apply if the property is owned by:
- A Real Estate Investment Trust (REIT);
- A corporation;
- A limited liability company in which at least one member is a corporation; or
- Management of a mobilehome park.
Requirement No. 2: The Tenant Must Receive the Required Written Disclosure
Even if the property otherwise qualifies, California law requires that tenants receive a very specific written disclosure.
The statute provides that tenants must receive the following statement:
“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12(d)(5) and 1946.2(e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”
Because the Legislature supplied the exact wording, landlords should reproduce it verbatim rather than paraphrase it.
When Must the Notice Be Provided?
The timing requirements depend upon when the tenancy began.
New or Renewed Tenancies
For any tenancy commenced or renewed on or after July 1, 2020, the exemption notice must be included in the rental agreement. Simply sending it later may not satisfy the statutory requirement.
Existing Tenancies Before July 1, 2020
For tenancies already in existence before July 1, 2020, landlords could provide the disclosure either:
- by written notice no later than August 1, 2020, or
- through an addendum to the lease.
Why This Notice Matters
Many landlords mistakenly believe that simply owning a single-family residence automatically exempts them from AB 1482. That is incorrect.The exemption is conditional. One of those conditions is providing the statutory notice.
Without it, an otherwise exempt property may be treated as subject to:
- statewide rent caps; and
- statewide just cause eviction protections.
In litigation, tenants frequently argue that the landlord cannot rely on the exemption because the required disclosure was never provided.
What Happens If the Notice Is Missing?
Failing to provide the required exemption notice can have significant legal consequences.
1. The Property May Become Subject to Statewide Rent Caps
If the exemption cannot be established, the landlord may become subject to Civil Code section 1947.12, limiting annual rent increases to the statutory maximum.
2. Just Cause Eviction Requirements May Apply
Without a valid exemption, a landlord generally cannot terminate a qualifying tenancy without one of the statutory “just cause” reasons listed in Civil Code section 1946.2.
This substantially changes the eviction process and may require:
- an at-fault or no-fault statutory basis;
- relocation assistance for certain no-fault terminations; and
- compliance with numerous statutory notice requirements.
Protect Your Rental Property Before Problems Arise
The AB 1482 exemption notice is one of the most overlooked requirements in California landlord-tenant law. A landlord may own an otherwise exempt single-family residence or condominium yet unintentionally lose the protections of the exemption by failing to provide the required statutory disclosure.
Because the consequences can include rent control limitations, just cause eviction requirements, invalid notices, and costly litigation, landlords should review every lease to ensure the exemption notice has been properly included.
If you own rental property anywhere in California and have questions regarding AB 1482, lease drafting, exemption notices, or unlawful detainer proceedings, the Law Office of Aaron Kohanim can help you protect your rights and avoid costly compliance mistakes.
Contact the Law Office of Aaron Kohanim today to schedule a consultation. You can call us at (310) 861-7506. If you prefer to send a quick message, visit our Contact Us page.
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