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AB 1157 Rent Control Proposal Will Not Advance in 2025: What Sacramento Rental Property Owners Need to Know
California rental housing laws continue to evolve, and for property owners in Sacramento, staying informed is essential to protecting long-term investments. A recently proposed statewide rent control bill—Assembly Bill 1157 (AB 1157)—would have significantly altered California’s existing rent cap framework. However, as of this legislative session, the proposal will not advance.
While this outcome offers temporary relief for rental property owners, the bill highlights the ongoing legislative pressure surrounding rent control in California. Here’s what Sacramento property owners need to know about AB 1157, what would have changed, and why proactive management remains critical.
What Was AB 1157?
AB 1157 was introduced by Assemblymember Ash Kalra (D–San Jose) and aimed to tighten California’s current rent control regulations. The bill sought to amend and expand the state’s existing rent cap law, AB 1482, which currently governs allowable rent increases and just-cause eviction standards for many residential properties.
The proposal failed to advance in the Assembly this session and is no longer active. While no immediate changes will occur, the bill reflects broader policy trends that continue to influence housing legislation in Sacramento and across the state.
What Changes Would AB 1157 Have Introduced?
If adopted, AB 1157 would have made several substantial changes affecting Sacramento rental property owners:
1. Lower Rent Increase Limits
The bill proposed reducing the allowable annual rent increase to 2% plus inflation, with a hard cap of 5%. This would have significantly restricted rent growth compared to current law, which allows up to 5% plus inflation, capped at 10%.
For owners facing rising expenses—insurance, property taxes, utilities, and maintenance—this reduction could have impacted operating margins and long-term property viability.
2. Expanded Coverage to Previously Exempt Properties
AB 1157 aimed to remove key exemptions currently available under AB 1482, including:
Single-family homes
Condominiums
Accessory dwelling units (ADUs)
Individually owned townhomes
Many Sacramento property owners rely on these exemptions when structuring rent strategies and long-term planning. Their removal would have dramatically increased regulatory oversight for small and mid-sized landlords.
3. Removal of the Rent Cap Sunset Date
California’s existing statewide rent cap law includes a scheduled sunset date. AB 1157 proposed eliminating that expiration entirely, effectively making statewide rent control permanent unless repealed by future legislation.
This raised concerns among housing stakeholders regarding reinvestment, renovation decisions, and the long-term rental housing supply in markets like Sacramento.
Why Sacramento Property Owners Were Concerned
Sacramento’s rental market has experienced steady demand driven by population growth, employment stability, and relative affordability compared to coastal California markets. However, operating rental property in the region already involves navigating:
State rent control regulations
Local ordinances
Rising insurance and maintenance costs
Increasing compliance and documentation requirements
AB 1157 would have added additional constraints at a time when many owners are already balancing tighter margins. Industry professionals warned that the proposal could discourage reinvestment, reduce rental housing availability, and place disproportionate pressure on small property owners.
What This Means Right Now for Sacramento Rentals
For now, nothing changes.
California’s existing statewide rent control law (AB 1482) remains fully in effect. This means:
Current rent increase limits still apply
Existing exemptions remain intact
Just-cause eviction standards are unchanged
Timelines and compliance requirements remain the same
However, the failure of AB 1157 should not be viewed as a permanent resolution. Rent control remains a highly active topic in Sacramento’s legislative environment, and similar measures may be reintroduced in future sessions under different bill numbers or amended language.
The Importance of Staying Ahead of Legislative Changes
One of the biggest risks for rental property owners is assuming that today’s regulations will remain stable. California housing laws change frequently, often with limited lead time for compliance.
For Sacramento owners, this makes professional property management increasingly valuable. Proper management is no longer just about rent collection—it’s about:
Ensuring lawful rent increases
Maintaining compliant lease language
Tracking exemption eligibility
Staying aligned with evolving state and local regulations
Mistakes in any of these areas can expose owners to fines, legal disputes, or forced rent rollbacks.
How Legacy Property Management Supports Sacramento Property Owners
At Legacy Property Management, we closely monitor legislative activity that could affect rental property owners throughout Sacramento and Northern California. Our team stays informed on proposed bills, regulatory updates, and compliance requirements so our clients can make informed decisions with confidence.
We help property owners by:
Evaluating how rent control laws apply to specific properties
Structuring lawful rent increase strategies
Maintaining compliant documentation and notices
Proactively adjusting management plans as laws evolve
Our approach emphasizes risk reduction, long-term asset protection, and stable tenant relationships, helping investors navigate one of the most complex rental markets in the country.
Looking Ahead
While AB 1157 will not move forward this year, the broader conversation around rent control in California is far from over. Sacramento remains a focal point for housing policy discussions, making it essential for property owners to remain informed and prepared.
If you have questions about how current rent control laws apply to your Sacramento rental property—or how future proposals could affect your investment—working with an experienced local property management team can provide clarity and protection.
Staying proactive today helps prevent costly surprises tomorrow.
