Thinking About Renting Out Your Property or Buying an Investment Rental in Manhattan Beach? Understand AB 1482 First

If you are considering renting out your Manhattan Beach home or purchasing an investment property to lease, one of the first things to understand is how California’s statewide Tenant Protection Act, commonly referred to as AB 1482, may apply.

Manhattan Beach does not have local rent control. That often leads owners and investors to assume there are no rent caps here. However, AB 1482 is a statewide law, and depending on the property, it can limit rent increases and affect termination rights.

AB 1482 does two primary things.

First, it limits annual rent increases for covered properties. The cap is 5% plus the local Consumer Price Index, not to exceed 10% total in any 12 month period. If your property is subject to the law, you cannot increase rent beyond that formula, even in a strong rental market.

Second, it requires just cause for termination after a tenant has occupied the property for 12 months. After that point, ending a tenancy requires a legally recognized reason such as nonpayment of rent, breach of lease, owner occupancy, or substantial remodel. In certain no fault situations, relocation assistance may be required.

So how do you know if AB 1482 will apply to a property in Manhattan Beach?

There are three main factors.

Property type matters. Duplexes, triplexes, and fourplexes are commonly covered. Single family residences and condominiums may qualify for exemption, depending on ownership.

Ownership structure matters. A single family home or condo owned by an individual may qualify for exemption. The same property owned by an LLC or corporation is often subject to AB 1482.

Age matters. In general, the law applies to properties that are more than 15 years old. Newer construction is typically exempt until it reaches that age threshold.

If a property qualifies for exemption, the lease must include specific statutory exemption language. Without that written notice, the exemption can be lost. If the property is subject to the law, the required AB 1482 notice must be included in the lease and rent increases must follow the annual cap.

For someone evaluating whether to rent out their home or purchase an investment property in Manhattan Beach, this is not a reason to avoid the market. It is simply a factor to understand. Ownership structure, property type, and year built can affect long term flexibility, future rent adjustments, and exit strategy.

Manhattan Beach remains a strong rental market, but thoughtful planning matters. Understanding how AB 1482 applies before you list or purchase allows you to structure the investment correctly from the start and align it with your long term goals.

Contact us HERE or give us a call at (424) 212 3859.

Best regards,
Lindsay Woolf CA DRE 02236711
Josh Woolf CA DRE 02252408
Circa Properties CA DRE 02182130

Disclaimer: The information in this blog post is provided for general informational purposes only and does not constitute legal advice. Real estate transactions can vary based on individual circumstances and local regulations. For guidance related to your specific situation, please consult the appropriate licensed professional.