Understanding California's Rent Increase Laws: Statewide & Local

Navigating California's rent increase laws is essential for both landlords and tenants to ensure compliance and protect rights.

With the state's dynamic housing market and evolving legislation, understanding the rules governing rent adjustments is more important than ever.

This comprehensive guide provides an overview of California's rent increase regulations, including statewide caps, local ordinances, tenant protections, and recent legislative updates.

Note: Always consult official state resources or legal professionals for the most current information.

Rent Control Laws in California

California’s rent control laws establish clear limits on how much landlords can increase rent and how often these increases can occur. These laws aim to balance tenant protections with landlord rights, addressing affordability concerns in the state’s competitive housing market.

Statewide Rent Caps (AB 1482)

Under the California Tenant Protection Act of 2019 (AB 1482), annual rent increases for many rental properties are limited to:

• 5% plus the regional Consumer Price Index (CPI) increase, or
• 10% of the lowest rent charged for the unit during the 12 months prior to the increase,
  whichever is lower.

For example:

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If the CPI increase in your region is 3.5%, landlords can raise rent by up to 8.5% (5% + 3.5%). However, if the CPI increase exceeds 5%, the total allowable increase remains capped at 10%.

Local Rent Control Ordinances

In addition to AB 1482, many cities and counties in California have their own rent control ordinances. These local laws may impose stricter limits on rent increases, along with additional tenant protections.

For instance:

• Los Angeles: Properties under the Rent Stabilization Ordinance (RSO) are subject to stricter rent increase limits and additional rules for tenant protections.
• San Francisco: Rent increases are regulated under local ordinances, which may include specific notice requirements and dispute resolution procedures.

Because local rules can override statewide laws, it’s crucial for landlords and tenants to understand the regulations in their city or county.

Who Is Covered by Rent Control Laws?

Not all properties are subject to these rent control laws. AB 1482 applies to most rental units but excludes:

• Housing built within the last 15 years (a rolling exemption to encourage new construction).
• Single-family homes and condos, provided they are not owned by corporations, real estate investment trusts (REITs), or LLCs with corporate members.
• Owner-occupied duplexes and properties with fewer than two units where the landlord resides.

Properties exempt from AB 1482 may still be subject to local rent control ordinances, depending on the area.

AB 1482: Statewide Rent Caps and Tenant Protections

The California Tenant Protection Act of 2019 (AB 1482) introduced significant statewide protections for residential tenants, aimed at preventing excessive rent increases and unjust evictions. These regulations apply to many rental properties across the state, setting limits on rent adjustments and providing clear guidelines for tenant protections.

Key Provisions of AB 1482

1. Rent Caps:
   • Annual rent increases are capped at 5% plus the regional Consumer Price Index (CPI) increase, or 10% of the lowest rent charged in the past 12 months, whichever is lower.
   • These caps aim to stabilize housing costs while allowing landlords to adjust for inflation.
2. Eviction Protections:
   • Tenants gain protection against "no-fault" evictions after living in their unit for at least 12 months.
   • Landlords must provide a just cause for evictions, which fall into two categories:
     • At-Fault Evictions: Non-payment of rent, breach of lease terms, or criminal activity.
     • No-Fault Evictions: Owner move-ins, substantial renovations, or removing the property from the rental market.
   • For no-fault evictions, landlords are typically required to provide relocation assistance equivalent to one month’s rent.

Here's more detailed information on the eviction process in California.

1. Notice Requirements:
   • Rent increases up to 10% require a 30-day notice.
   • Increases above 10% (if applicable under specific circumstances) require a 90-day notice.

Who Is Protected?

AB 1482 applies to most residential tenants in California but does not cover:

• Newly constructed buildings within the last 15 years.
• Single-family homes and condos not owned by corporations, real estate investment trusts (REITs), or LLCs with corporate ownership.
• Owner-occupied duplexes and specific short-term rental properties.

Even if a property is exempt from AB 1482, it may still be subject to local rent control ordinances that impose similar or stricter protections.

Local Rent Control Laws

In addition to the statewide protections provided by AB 1482, many cities and counties in California have implemented their own rent control laws.

These local ordinances often provide stricter limits on rent increases and additional protections for tenants.

Examples of Local Rent Control Ordinances

• Los Angeles:
  The Rent Stabilization Ordinance (RSO) applies to properties built before October 1, 1978. Under the RSO:
  • Rent increases are limited annually, with specific caps set by the city.
  • Landlords must adhere to notice requirements and may face restrictions on evicting tenants.
  • Tenants can report violations to the Los Angeles Housing Department (LAHD).
• San Francisco:
  San Francisco has one of the most comprehensive rent control programs in California. The ordinance applies to multi-unit buildings constructed before June 13, 1979, and includes:
  • Strict annual limits on rent increases based on the local inflation rate.
  • Additional protections for tenants, such as mandatory relocation payments for certain types of evictions.

How to Determine Local Rent Control Rules

Each city or county has its own set of rules that may override or enhance statewide protections. Landlords and tenants should:

1. Check Local Housing Authority Websites: Many cities, like Los Angeles and San Francisco, maintain resources to explain local rent control laws.
2. Contact Local Rent Boards: Rent boards provide guidance on rent increase limits, eviction protections, and tenant rights in specific jurisdictions.
3. Understand Tenant Protections: Some local ordinances include unique tenant rights, such as relocation assistance or restrictions on allowable evictions.

Why Local Laws Matter

Local ordinances can significantly impact how rent increases are calculated and what protections tenants receive. Even properties exempt from AB 1482 may be subject to local laws that impose additional restrictions or requirements.

Tenant Protections Under Rent Control

Rent control laws in California are designed not only to limit rent increases but also to protect tenants from unjust evictions and ensure they have secure housing.

These protections are a crucial layer of California’s housing laws, particularly under the California Tenant Protection Act (AB 1482).

Eviction Protections

Tenants in rent-controlled properties benefit from significant eviction protections:

• Just Cause Evictions: Landlords must provide a valid reason for evicting a tenant. These reasons are categorized as:
  • At-Fault Evictions: Reasons include non-payment of rent, lease violations, or criminal activity on the property.
  • No-Fault Evictions: Reasons include owner move-ins, substantial renovations, or removing the property from the rental market.
• Relocation Assistance: For no-fault evictions, landlords are generally required to provide relocation assistance or waive the tenant’s final month of rent.

Notice Requirements

State law mandates landlords to provide sufficient notice before evicting tenants or increasing rent:

• Evictions: A notice period depends on the reason for eviction and whether it’s classified as at-fault or no-fault.
• Rent Increases: As noted earlier, rent increases of up to 10% require a 30-day notice, while increases exceeding 10% require 90 days.

Emergency and Local Protections

In addition to statewide protections, tenants may benefit from emergency measures or local ordinances:

• Some cities and counties have stricter eviction protections or additional tenant rights.
• Emergency protections, such as those implemented during the COVID-19 pandemic, may still be in place in certain areas.

Protections During Natural Disasters

Some California cities and counties have enacted specific protections for tenants affected by natural disasters. For example, Sonoma County approved ordinances requiring landlords to accept late rent payments and prohibiting evictions during declared states of emergency.

California’s vulnerability to natural disasters like earthquakes, wildfires, and flooding has led to additional tenant safeguards in some jurisdictions:

• Rent Relief and Late Payment Provisions: During declared states of emergency, some local ordinances prohibit evictions for late rent payments or mandate grace periods for affected tenants.
• Habitability Standards: Landlords are required by law to maintain habitable housing, even after disasters. If a unit becomes uninhabitable due to a natural disaster, tenants may have the right to terminate the lease without penalty.
• Relocation Assistance: In certain cases, landlords may be obligated to assist displaced tenants financially, especially if local laws require it.

Recommendations for Tenants

• Document Damages: Immediately document any damage to your rental unit caused by natural disasters through photographs and written records.
• Notify Your Landlord: Promptly inform your landlord in writing about any damages and the need for repairs.
• Seek Legal Advice: If disputes arise regarding habitability or repairs, consider consulting a legal professional to understand your rights and options.

By understanding these protections and responsibilities, tenants and landlords can better navigate the challenges posed by natural disasters, ensuring safety and compliance with California laws.

Exemptions from Rent Control Laws

While rent control laws in California provide protections for many tenants, not all rental properties fall under their jurisdiction.

Certain types of properties and ownership structures are exempt from statewide laws like AB 1482, as well as some local ordinances. Understanding these exemptions is crucial for landlords and tenants alike.

Statewide Exemptions from AB 1482

The California Tenant Protection Act of 2019 (AB 1482) does not apply to the following types of properties:

• New Construction: Residential properties built within the last 15 years are exempt to encourage housing development. This rolling exemption applies regardless of property type.
• Single-Family Homes and Condos: These are exempt provided they are:
  • Not owned by a corporation, real estate investment trust (REIT), or limited liability company (LLC) with corporate members.
  • Properly disclosed as exempt in the lease agreement.
• Owner-Occupied Duplexes: If the owner lives in one of the units, the property is exempt from AB 1482 regulations.
• Other Exemptions:
  • Properties subject to local rent control ordinances with equal or stricter protections.
  • Hotels and short-term rentals.
  • Affordable housing units with rent restrictions or subsidies.

Local Rent Control Exemptions

Even if a property is exempt from AB 1482, it may still be subject to local rent control ordinances. However, local laws often include their own exemptions:

• Recently Built Properties: Similar to AB 1482, many local ordinances exempt newer buildings to promote development.
• Small Properties: In some areas, buildings with fewer than two or three units may be excluded.
• Specific Owner-Occupied Properties: Some local rules exempt small, owner-occupied rental properties from rent control regulations.

Why Exemptions Matter

Understanding exemptions is critical because:

• For Landlords: Failure to comply with disclosure requirements can result in penalties. For example, landlords of exempt single-family homes must clearly notify tenants in the lease agreement.
• For Tenants: Knowing whether a property is exempt helps tenants determine their rights regarding rent increases and eviction protections.

Housing Conditions and Maintenance

In California, landlords are required by law to maintain safe and habitable living conditions for their tenants. This obligation is outlined under California Civil Code §1941, which ensures that tenants have access to basic necessities and a secure living environment.

Habitability Requirements

Landlords must provide and maintain rental properties that meet the following minimum standards:

• Weatherproofing and Structural Integrity: The property must be free from leaks and structural issues that could endanger tenants.
• Plumbing and Water Supply: Tenants must have access to running water, including hot water, and functional plumbing systems.
• Heating: The unit must include a working heating system to ensure livable conditions during colder months.
• Electrical Systems: Properly functioning electrical wiring and lighting are mandatory.
• Pest Control: The property must be free from infestations, such as rodents or insects.
• Safe Common Areas: Hallways, stairways, and other common areas must be kept clean and safe for tenants.

How Rent Control Intersects with Maintenance

Rent control ordinances often include additional provisions aimed at ensuring landlords maintain habitable housing:

• Limitations on Rent Increases for Repairs: Landlords cannot justify excessive rent hikes by citing routine maintenance costs.
• Tenant Remedies for Neglect: Under rent control laws, tenants can report maintenance violations to local rent boards, which may mediate disputes or impose penalties on landlords who fail to address issues.

What Tenants Should Do If Repairs Are Needed

If a landlord fails to make necessary repairs within a reasonable timeframe, tenants have several options:

1. Notify the Landlord: Provide written notice detailing the issue and requesting repairs.
2. Contact Local Housing Authorities: File a complaint with the city or county if the landlord does not respond.
3. Rent Withholding or Repair and Deduct: Tenants may be allowed to withhold rent or pay for the repair themselves and deduct the cost from future rent, as permitted by California law.

Resources for Landlords and Tenants

Navigating California’s rent control laws and tenant protections can be complex, but various resources are available to help landlords and tenants stay informed and compliant. Here are some valuable tools and organizations to consult:

Statewide Resources

• California Department of Housing and Community Development (HCD): The HCD provides detailed information on housing laws, tenant protections, and statewide initiatives to promote affordable housing. Visit their website for guides and updates on California rent control laws.
• California Department of Consumer Affairs: This department oversees landlord-tenant disputes and offers resources to help resolve issues related to rent increases, evictions, and maintenance responsibilities.

Local Rent Boards and Housing Authorities

Many cities and counties have their own rent boards or housing departments that provide support for landlords and tenants:

• Los Angeles Housing Department (LAHD): For properties under the Rent Stabilization Ordinance (RSO), LAHD offers resources for dispute resolution, filing complaints, and understanding local regulations.
• San Francisco Rent Board: Provides guidance on rent increases, tenant protections, and eviction procedures for properties covered by San Francisco’s rent control ordinance.

Tenant Advocacy Groups

• Tenants Together: A statewide coalition that advocates for tenant rights and provides educational resources and legal referrals.
• Legal Aid Organizations: Local legal aid groups can assist tenants facing disputes with landlords or evictions. For example, here's an LA resource for tenants facing evictions.

Conclusion

Understanding California’s rent increase laws is essential for fostering a fair and transparent rental market. With the state’s combination of statewide rent caps, local ordinances, and tenant protections, landlords and tenants must stay informed to navigate their rights and responsibilities effectively.

Key takeaways include:

• Statewide Rent Caps: AB 1482 limits annual rent increases to 5% plus the local CPI increase or 10%, whichever is lower.
• Local Rent Control: Cities like Los Angeles and San Francisco have stricter rules that may override statewide protections.
• Tenant Protections: Laws such as just-cause eviction requirements and relocation assistance ensure tenants have security in their housing.
• Exemptions: Not all properties are subject to these rules, making it vital to verify the applicability of rent control laws.
• Habitable Conditions: Landlords must maintain their properties in a safe and livable condition, with remedies available for tenants in cases of neglect.

For landlords, compliance with these laws helps build trust and avoid potential penalties, while tenants benefit from greater housing stability and the ability to exercise their rights when needed.

As regulations are subject to change, both landlords and tenants should consult trusted resources, such as local rent boards, the California Department of Housing and Community Development, and legal professionals, for the most current information.

By staying informed, landlords and tenants can create a balanced and equitable rental market in California.

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Sources

1. California Tenant Protection Act of 2019 (AB 1482)
   • This act establishes statewide rent caps and tenant protections in California.
2. Los Angeles Rent Stabilization Ordinance (RSO)
   • The RSO regulates rent increases and tenant protections for certain properties in Los Angeles.
3. San Francisco Rent Board
   • Provides guidance on rent increases, tenant protections, and eviction procedures in San Francisco.
4. Tenants Together
   • A statewide coalition advocating for tenant rights and providing educational resources.
5. California Department of Housing and Community Development (HCD)
   • Offers information on housing laws, tenant protections, and statewide initiatives.
6. California Department of Consumer Affairs
   • Oversees landlord-tenant disputes and provides resources on rent increases, evictions, and maintenance responsibilities.
7. Tenants Together - AB 1482 Toolkit
   • A comprehensive guide to understanding and applying AB 1482.