California Rent Increase Laws

Last Updated: December 24, 2023 by Jessica Menefee

Rent Increase Facts Answer
Reason Needed? No
Max Amount 5% + CPI or 10%, whichever is lower
Required Notice 30 or 90 Days

Does California Have Rent Control?

California does have statewide rent control laws. Several cities also have additional rent control laws and ordinances to offer additional protections to the tenants.

example

 In Sacramento, rent can only be raised once every 12 months and applies to all tenants regardless of how long they have resided in the unit. The maximum increase cannot exceed 5% plus the change in the inflation rate.

Most major cities in California have rent control ordinances that add additional protections to tenants beyond the state laws including:

Rent Control Exceptions

There are a few rental units that are exempt from state rent control laws, including:

  • Housing restricted in use for low to moderate-income individuals
  • Some school housing
  • Housing built within the past 15 years, excluding mobile homes
  • A single-family residence not owned by an LLC in which one of the members is a corporation, REIT, or corporation, and in which the landlord has provided written notice of the exemption
  • A duplex where the owner resides in one of the units as their primary residence

Occasionally, a city’s rent stabilization ordinance conflicts with the state rent control laws. If a city’s rent control law conflicts with state law, the city law will prevail if it was enacted before September 1, 2019, and the law offers greater protection to tenants.

note

Some cities provide resources to understand local rent control and determine if your residence is protected by rent control. For example, if you live in Los Angeles, you can check to see if your home is protected by city rent control laws. Enter your address in the city’s parcel map and look under the Housing tab.

When Can a Landlord Raise Rent in California?

Landlords in California can raise the rent at any time, as long as they comply with the following:

  • Give the tenant reasonable notice
  • Aren’t raising rent for retaliatory or discriminatory reasons
  • Wait until the end of the lease term (unless otherwise specified in the lease)
  • Don’t break any rent control laws

example

60 days before the end of a year-long lease, a landlord sends a notice that rent will increase by 5% if the tenants choose to renew the lease.

When Can’t a Landlord Raise Rent in California?

Landlords in California may not raise the rent if:

  • The increase is applied in a way that discriminates against one of the protected classes specified in the Fair Housing Act.
  • It is done in response to a protected tenant action, such as filing a complaint about bed bugs. This is known as “retaliation.”
  • It is during the middle of a lease’s fixed term (unless stated otherwise in the lease agreement).
  • The increase is higher than what’s allowed under rent control laws.

How Often Can Rent Be Increased in California?

According to California state law, landlords can increase rent twice every 12 months as long as they provide sufficient notice and don’t do so during the lease term.

However, some city rent control ordinances, like Oakland and East Palo Alto, have differing rules that permit only one rent increase per year unless the unit is exempt.

How Much Can a Landlord Raise Rent in California?

California law limits rent increases to 5% plus the annual rate of inflation or 10%, whichever is lower.

The annual rate of inflation or CPI (Consumer Price Index) is calculated by the Department of Industrial Relations each year. However, some areas use the regional CPI to calculate rent increases including:

How Much Notice is Needed to Raise Rent in California?

Typically, California landlords must give 30 days’ notice when increasing rent. If the landlord proposes to raise the rent by more than 10%, they must give 90 days’ notice.

Landlords in California cannot increase rent during a lease term unless the lease agreement specifically allows rent increases.

Sources

Rent Increases & Fees in Other States