Understanding California’s rent increase laws is essential for tenants to protect their rights. The Tenant Protection Act (AB 1482) continues to regulate rent increases across the state. From statewide caps to city-specific regulations, 2025 brings some important updates to these laws. Let’s break it down for clarity.
Statewide Rent Control
California’s Tenant Protection Act limits rent hikes to ensure affordability:
- Annual Cap: Rent increases are limited to 5% plus the local Consumer Price Index (CPI), or 10%, whichever is lower.
- Housing Affordability: These limits aim to protect tenants from unaffordable rent hikes.
Regional Variations in Rent Control
Certain cities have stricter rent control rules:
- Los Angeles County: As of January 2025, rent increases are tied to 60% of the CPI’s annual change.
- San Francisco: From March 2024 to February 2025, the maximum rent increase is capped at 1.7%.
- Berkeley: Beginning January 2025, landlords can increase rent by 2.1% for tenancies started before January 2024.
Tenants should review their city-specific rent control ordinances for additional protections.
Notice Requirements for Rent Increases
Landlords must provide written notice before raising rent:
- 30 days’ notice: For increases below 10%.
- 90 days’ notice: For increases exceeding 10%.
Frequency of Rent Increases
Under state law:
- Landlords can raise rent twice in 12 months, provided the total increase stays within the legal cap.
Exemptions to Rent Control Laws
Not all properties are subject to these rent control regulations. Exemptions include:
- Homes built in the last 15 years.
- Single-family homes and condos (with exceptions).
- Duplexes where the owner lives in one unit.
Additional Protections for Tenants
- Just Cause Evictions: Landlords must have valid reasons to evict tenants under the Tenant Protection Act.
- Emergency Rent Protections: Following firestorms in Los Angeles County, rent increases are limited to 10% until March 8, 2025.
Credit Reporting Option
Starting January 2025, landlords must offer tenants the option to report rental payments to credit bureaus. This helps tenants build a positive credit history.
What Tenants Should Do
- Know your rights: Familiarize yourself with state and local rent control laws.
- Check notices: Ensure landlords provide proper written notice for rent increases.
- Verify increase limits: Use the CPI and statewide cap to calculate allowable increases.
- Document everything: Keep all communications and rent notices for reference.
- Seek help if needed: Reach out to local tenant organizations for legal aid.
- Use credit reporting: Take advantage of the new credit reporting option to boost your credit score.
FAQs
- What is the statewide cap on rent increases in California?
Rent increases are capped at 5% plus the local CPI or 10%, whichever is lower. - Are all properties subject to rent control laws?
No, exemptions include newly built homes (within 15 years), certain single-family homes, and duplexes where the owner lives on-site. - How often can landlords increase rent?
Landlords can raise rent twice a year, but the total increase must stay within the annual limit. - What should tenants do if their rent increase seems illegal?
Contact local tenant rights organizations or legal aid services for assistance. - How can tenants benefit from the credit reporting option?
Reporting rent payments can help tenants improve their credit scores, making it easier to secure future housing or loans.
