California rental law, explained for owners.

California's statewide rent cap (AB 1482)

Many California rental properties are subject to a statewide cap on annual rent increases under the Tenant Protection Act of 2019 (AB 1482), codified at Civil Code §1947.12. The cap is 5% plus the regional Consumer Price Index, or 10%, whichever is lower, recalculated every August 1st using the CPI for the property's metro area.

Sun Stone's priority markets span two different CPI regions, so there is no single number that covers the whole service area:

• Pomona, Claremont, La Verne, San Dimas, Walnut, Glendora, Covina, and West Covina are in Los Angeles County and fall under the Los Angeles-Long Beach-Anaheim CPI region (Los Angeles and Orange counties). The cap for August 1, 2026 through July 31, 2027 is 8.7%
• Upland, Ontario, Rancho Cucamonga, Chino, Chino Hills, and Montclair are in San Bernardino County and fall under the Riverside-San Bernardino-Ontario CPI region (Riverside and San Bernardino counties). The cap for the same period is 8.1%

A few other things worth being precise about:

• The rent cap itself has no minimum-tenancy waiting period. It limits how much you can raise rent on a sitting tenant, measured over any rolling 12-month period, with no more than two increases allowed in that window. A brand-new tenancy can start at market rate; the cap applies to increases after that.
• Increases of 10% or less require 30 days' written notice; increases above 10% require 90 days
• Some individually owned single-family homes and condos may qualify for exemption from the rent cap when the statutory ownership and tenant-notice requirements are satisfied; newer housing may also qualify for an exemption based on its certificate-of-occupancy date
• California's statewide just-cause protections generally apply after 12 months of lawful occupancy. Different timing can apply when additional adult occupants are added, and local rules may provide earlier or additional protections. This requirement (Civil Code §1946.2) is separate from the rent-cap rule, even though both come out of AB 1482.
• Currently scheduled to remain in effect through 2029

A stricter local ordinance, such as Pomona's below, controls for the properties it covers.

Pomona's Rent Stabilization Ordinance

Pomona Ordinance No. 4359 is effective January 1 through December 31, 2026. Covered residential rent increases are currently limited to 5% per year, with one increase permitted in a 12-month period. The ordinance remains in effect through December 31, 2026 unless reauthorized.

• The 5% limit is a fixed number and is not tied to CPI the way the state cap is
• Requires a valid just-cause reason before ending any tenancy
• It applies to residential rental units unless the property is exempt under the ordinance, state, or federal law, and landlords must comply with the City's exemption-filing requirements where applicable
• Tenants can file a Petition for Noncompliance, reviewed by an independent Hearing Officer

Questions can go directly to the city at RentStabilization@pomonaca.gov or (909) 620-3777.

California's security deposit limit (AB 12)

Since July 1, 2024, security deposits in California are capped at one month's rent for both furnished and unfurnished units, a change from the previous two- and three-month limits.

• A small-landlord exception can allow up to two months' rent when the landlord is a natural person, or an LLC whose members are all natural persons, and owns no more than two residential rental properties totaling no more than four dwelling units
• Active-duty service members are capped at one month's rent regardless of landlord size
• The cap covers everything combined: last month's rent, pet deposits, and cleaning fees can't be charged separately to get around it
• Deposits must be returned, or an itemized deduction statement sent, within 21 calendar days of move-out
• California now also requires condition photographs in specified situations: move-out photos before repair/cleaning deductions for tenancies ending on or after April 1, 2025, and move-in photos for tenancies beginning on or after July 1, 2025; additional photos are required after deductible repair or cleaning work is completed
• Beginning January 1, 2026, if both the security deposit and rent were paid by a digital payment method, the deposit generally must be returned by a digital payment method unless the landlord and tenant agree in writing to another method
• Only unpaid rent, cleaning beyond normal move-in condition, and damage beyond normal wear and tear can be deducted

Getting this wrong is expensive. Failing to return a deposit properly can expose an owner to penalties on top of the deposit itself.

Official references: California DOJ rent-increase limits · 2026 California DRE Landlord/Tenant Guide · City of Pomona Rent Stabilization Program.

General information, not legal advice

This information is meant to help owners understand the rules. It does not replace an attorney. Rules change, exemptions are fact-specific, and a property that looks exempt on paper sometimes isn't. For questions about your property, talk to a real estate attorney or reach out and we'll point you in the right direction.