Rent increase limits in California: the Tenant Protection Act and local rent control

How the statewide cap works

The cap is calculated from the lowest gross rental rate charged during the previous 12 months. The allowed increase is 5% plus the change in the regional Consumer Price Index, up to a maximum of 10%. The California Attorney General publishes a chart with the maximum increase for each region and period, so you do not have to calculate the inflation figure yourself. The landlord may not split an increase into several smaller ones to get around the limit; all increases within 12 months count together.

When a tenant moves out and a new tenant moves in, the landlord can generally set a new starting rent. The cap then applies to increases during the new tenancy.

Which homes are covered

The statewide cap applies to most rental housing in California that is more than 15 years old, counted on a rolling basis from the certificate of occupancy. It also covers single-family homes and condos owned by a corporation, a real estate investment trust or an LLC with at least one corporate member.

Common exemptions include housing built within the last 15 years, deed-restricted affordable housing, dormitories, a duplex in which the owner lives in the other unit, and single-family homes or condos owned by individuals, but only if the landlord gave the tenant the required written notice that the unit is exempt. Units already subject to a stricter local rent cap follow the local rule.

• Find out when your building was built or received its certificate of occupancy.
• Check whether your lease contains a written exemption notice.
• Look up whether your city or county has its own rent stabilization ordinance.

Notice before an increase

For a month-to-month tenancy, Civil Code section 827 requires written notice at least 30 days before an increase takes effect. If the increase, together with other increases in the previous 12 months, is more than 10%, the notice period is at least 90 days. A phone call or text message is not enough. During a fixed-term lease, the rent generally cannot be raised unless the lease itself allows it.

An increase that exceeds the cap, or is given without proper notice, is not enforceable as stated. Keep paying the lawful rent, put your objection in writing and get advice, because refusing to pay any part of the rent can lead to a 3-day notice.

Local rent control can protect you more

Many California cities, including large ones, have local rent stabilization ordinances. They often set lower yearly limits tied to inflation, require registration of units or create a rent board where tenants can file petitions. State law limits local rent control in some ways, for example for many newer buildings and for most single-family homes and condos, so a home may be covered by the state cap but not by local rent control, or the other way around.

The Attorney General's rent cap page lists many local ordinances and their current limits. Your city's rent board or housing department can confirm whether your unit is covered.