“An investment in knowledge pays the best interest.” — Benjamin Franklin

 

HOW MUCH CAN I RAISE THE RENT?

It’s the question I hear most from owners all the time and the honest answer is: it depends on where your building is.

Statewide, AB 1482 limits annual increases to 5% plus the local change in the Consumer Price Index, up to a maximum of 10%. For increases taking effect August 1, 2026 through July 31, 2027, the figure for the Los Angeles–Long Beach–Anaheim area works out to about 8.7%. That number resets every August.

 

DIFFERENT CAPS But the state cap is only the starting point. When more than one rule applies, the stricter one controls. A few examples:

  • City of Los Angeles rent-stabilized buildings (built before October 1978) are limited to 3%.
  • Unincorporated Los Angeles County buildings fall under the county’s ordinance, currently 1.919%, with different rules for some small owners.
  • Many other cities have their own ordinances, so check yours.

EXEMPTIONS Some properties are exempt from AB 1482, including buildings with a certificate of occupancy within the last 15 years. Some single-family homes and condos also qualify, but the owner must give the proper written exemption notice.

PROPER NOTICE AND REQUIRES TIMING Regarding your written notice- 30 days’ written notice for increases of 10% or less, and 90 days above 10%.

I worked with an investor who owns two older buildings in unincorporated Los Angeles County. The state number was the one everyone had in mind. The county’s cap was far lower. A quick check before the notices went out kept him from sending the wrong ones.

MAKE SURE BEFORE YOU POST NOTICES Before you send any notice, confirm which rules cover your building with your city or county, and check with your attorney. This is general information, not legal advice.

How PRS Properties Can Help

  • Opinions of value on your apartment building
  • Marketing and selling your property
  • Help with 1031 exchanges
  • Buying buildings as-is, so you can sell without repairs or showings

“Risk comes from not knowing what you’re doing.” Warren Buffet

 

WANT TO SELL WITHOUT LISTING? 

We’re currently buying “as-is” properties: low rents, deferred maintenance, even a problem tenant in place. We can offer a 7-day escrow and all cash at closing. We’ve also put together many off-market transactions over the years, including for 1031 investors who need to identify a replacement property before their 45-day window runs out.

  1. Curious what your building would sell for today? Call or email for a free opinion of value.
  2. Want to see what similar buildings have sold for lately? Call or email and I’ll send you recent comps.

 

On the fence? We’ve been doing this for nearly 50 years, and we’re always available to chat. If you’re thinking of selling, or just curious about your property’s value, give us a call. No pressure. Call or email