A Guide to Navigating the Complex Legal Landscape of Rent Increases
“Can I raise the rent for my unit?”
It’s one of the most common—and most important—questions landlords ask. However, there’s no single, universal answer. In California, the ability to raise rent is governed by a complex web of laws at the state, local, and sometimes federal levels. From statewide rent caps under AB 1482 to strict municipal rent control ordinances, knowing the right answer depends on multiple factors.
This guide provides an overview of the key laws affecting rent increases in California and offers a practical framework to help landlords determine what rules apply to their properties.
Statewide Rent Cap: California’s Tenant Protection Act (AB 1482)
The most widely applicable law is Assembly Bill 1482, known as the Tenant Protection Act of 2019, which applies to much of the state’s rental housing stock. AB 1482 caps annual rent increases for covered units at 5% plus the local rate of inflation, up to a maximum of 10% per year.
Properties Covered by AB 1482:
- Apartments and multifamily units older than 15 years
- Single-family homes and condos owned by corporations, REITs, or LLCs with a corporate member
- Properties not subject to stricter local rent control ordinances
Exemptions:
- Single-family homes or condos owned by individual landlords (not corporations) and where proper exemption notices are provided in the lease.
- New constructions within the past 15 years
- Affordable housing or government-subsidized units
🔎 Tip: Even if your property is exempt from AB 1482, you must provide specific written disclosures in the lease to maintain that exemption.
Local Rent Control Ordinances
California cities like Los Angeles, San Francisco, Oakland, and Berkeley have long-standing local rent control ordinances that often impose stricter limits than state law. These regulations typically apply to older buildings (e.g., built before 1978 in LA) and include highly specific rules about:
- How much rent can be increased
- How often increases may occur
- Required notice periods
- Registration of rent amounts with the local housing department
Failure to follow these regulations can lead to hefty penalties, including having to roll back rent or pay restitution to tenants.
⚠️ Always check your local housing authority’s website or consult an attorney to confirm whether your property falls under a city-specific ordinance.
Just Cause Eviction and Its Impact on Rent Increases
Also part of AB 1482 is the Just Cause for Eviction provision, which limits when and how landlords can terminate a tenancy after 12 months of occupancy. This matters because:
- Attempting to raise rent beyond allowable limits and then evicting a tenant when they refuse to pay could constitute a “bad faith” eviction, subject to legal challenges.
- Certain types of no-fault evictions require landlords to provide relocation assistance.
Landlords must be especially careful not to mix rent increases with retaliatory or discriminatory actions, as this could violate fair housing laws.
Notice Requirements for Rent Increases
Regardless of how much you’re increasing rent, California law mandates written notice with specific timeframes:
- 30-day notice: For rent increases 10% or less over a 12-month period.
- 90-day notice: For rent increases more than 10%.
These timelines apply whether or not your property is under rent control, so long as the tenant is on a month-to-month lease. For fixed-term leases, rent cannot be increased during the term unless the lease includes a clause allowing it.
Other Laws That May Impact Rent Increases
In addition to AB 1482 and local ordinances, landlords should be aware of these additional factors that could affect rent increases:
Anti-Price Gouging Laws (Penal Code 396)
During state emergencies, such as wildfires or the COVID-19 pandemic, California imposes price gouging restrictions that limit rent increases to no more than 10%—even for exempt units.
Section 8 and Subsidized Housing Regulations
If your tenant receives federal assistance (e.g., through HUD Section 8), your rent increase must comply with federal guidelines and be approved by the relevant housing authority.
Mobilehomes and Special Housing Types
Mobilehome parks and senior housing may fall under different rules altogether, often governed by the Mobilehome Residency Law or local ordinances.
A Framework for Determining Rent Increase Rules
To determine what rules apply to your property, landlords should walk through the following steps:
- Determine property type and age: Is it a single-family home? Was it built more than 15 years ago?
- Check ownership structure: Is it owned by a corporation or an individual?
- Review local ordinances: Does the property fall within a rent-controlled jurisdiction?
- Identify tenant type: Are they subsidized tenants or subject to special protections?
- Verify applicable exemptions: Are proper lease disclosures in place?
- Confirm notice timelines: Are you providing adequate notice based on the increase?
Conclusion: Knowledge is Your Best Tool
California landlords must navigate a multi-layered legal environment when considering a rent increase. What seems like a simple business decision can quickly become a legal headache without a clear understanding of state and local laws. Fortunately, by staying informed and consulting trusted resources—like the California Apartment Association (CAA) and local legal professionals—you can protect your investment while maintaining fair housing practices.Key Takeaway:
Always research thoroughly before issuing a rent increase. When in doubt, consult with a legal expert or property management professional to ensure compliance with all applicable laws. Keeping your business legally sound ensures long-term success and tenant trust.