How Much Can a Landlord Raise Rent in California? Your Comprehensive Guide

Understanding your rights as a tenant or obligations as a landlord is crucial in California. This guide provides a detailed overview of rent increase limitations and eviction protections under California law, focusing on the Tenant Protection Act (AB 1482) and other relevant regulations.

Rent Increase Limits Under the Tenant Protection Act

The Tenant Protection Act (AB 1482) places a cap on how much landlords can increase rent for most residential tenants in California. This act aims to protect tenants from drastic rent hikes while allowing landlords to adjust rents reasonably.

Landlords in California cannot raise rent more than 10% total or 5% plus the percentage change in the cost of living (whichever is lower) over a 12-month period. This applies to most residential rental units in the state.

To calculate the allowable rent increase, landlords need to consider the cost of living change. This can be found through the national Consumer Price Index (CPI) by the Bureau of Labor Statistics or the California CPI by the California Department of Industrial Relations.

Exceptions to the Rent Cap

While the Tenant Protection Act provides broad protections, some types of properties are exempt from the statewide rent cap:

  • Single-family homes: If not owned or controlled by a corporation or a real estate investment trust. Note that the Act does apply if owned by a corporation or REIT.
  • Units covered by stricter local rent control: If a local ordinance is more tenant-protective than the Tenant Protection Act, the local ordinance takes precedence.
  • Newer buildings: Units issued a certificate of occupancy within the past 15 years (this is a rolling timeline).
  • Mobilehomes: Unless the mobilehome is owned and offered for rent by the owner or manager of a mobilehome park.
  • Owner-occupied duplexes: Duplexes where the owner lives in one unit when the tenant moves into the other, as long as the owner continues to live there.
  • Designated affordable housing: Housing restricted as affordable by deed, government agreement, or other recorded document, or subject to an agreement providing housing subsidies for affordable housing.
  • Dorms.

Local Rent Control Laws

In addition to the statewide rent cap, many cities and counties in California have their own rent control laws that may further restrict how much a landlord can increase rent annually. It is essential for both tenants and landlords to consult local resources to understand if additional protections exist in their specific area.

Just-Cause Eviction Requirement

Alongside rent control, the Tenant Protection Act also includes “just cause” eviction protections for most tenants who have lived in their unit for 12 months or more. This means a landlord can only evict a tenant for specific reasons outlined in the law. There are two categories of permissible evictions: “at fault” and “no fault.”

“At Fault” Evictions

“At fault” evictions occur when the landlord seeks to evict a tenant due to the tenant’s actions. These include:

  • Nonpayment of rent.
  • Breach of a material term of the lease.
  • Nuisance, waste, or using the unit for unlawful purposes.
  • Criminal activity on the premises or directed at the owner/agent.
  • Refusal to allow lawful entry.
  • Refusal to execute a new lease with similar terms.

“No Fault” Evictions

“No fault” evictions happen when the landlord seeks to evict a tenant for reasons not related to the tenant’s conduct. These include:

  • Owner move-in.
  • Intent to demolish or substantially remodel the unit.
  • Withdrawal of the unit from the rental market.
  • Complying with a government order or local law requiring the tenant to leave.

Landlords must provide proper notice and, in some cases, relocation assistance for “no fault” evictions. For instance, with owner move-ins, specific rules apply regarding who can move in, the timing of the move-in, and the duration of residency. Substantial remodels require permits and must involve significant structural, electrical, or plumbing work that necessitates the tenant to vacate for at least 30 days.

Important Considerations for Landlords and Tenants

Written Notice for Rent Increases

Landlords must provide tenants with a formal written notice of any rent increase. The timing of this notice depends on the amount of the increase:

  • 30 days notice: For rent increases of 10% or less.
  • 90 days notice: For rent increases of more than 10%.

Failure to provide proper written notice can render the rent increase unlawful.

Habitability

Landlords are legally obligated to maintain safe and habitable living conditions. This includes ensuring working plumbing, heating, electrical equipment, and maintaining the property free from pests and structural issues.

Tenants have the right to request repairs in writing, and landlords must address these issues promptly. If a landlord fails to make necessary repairs, tenants should contact their local code enforcement office or health department.

Illegal Lockouts

Landlords cannot attempt to “evict” a tenant by locking them out, shutting off utilities, or removing personal property. The only legal eviction method is through a court case.

Additional Tenant Protections

California law provides numerous additional protections for tenants, including:

  • Security Deposits: Limits on the amount that can be charged (typically one month’s rent) and requirements for returning the deposit with an itemized statement within 21 days of move-out.
  • Retaliation: Prohibits landlords from retaliating against tenants for exercising their rights (e.g., requesting repairs or reporting code violations).
  • Discrimination: Landlords cannot discriminate against tenants based on protected characteristics such as race, religion, sex, disability, or source of income.
  • Reasonable Accommodations: Landlords must provide reasonable accommodations for tenants with disabilities.

Seeking Legal Assistance

If you are a tenant facing an eviction, struggling to pay rent, or concerned about your housing rights, free or low-cost legal help may be available. Visit www.LawHelpCA.org to find a legal aid office near you.

Conclusion

Understanding the laws surrounding rent increases and tenant protections is essential for both landlords and tenants in California. By staying informed and adhering to these regulations, you can foster fair and equitable housing practices. This guide provides a solid foundation for navigating the complexities of California’s rental market, but it’s always advisable to seek legal counsel for specific situations.

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