Updated 05/19/25
Navigating rent increases in California isn’t just about crunching numbers—it’s about understanding complex rent control laws, staying compliant with tenant protections, and protecting your investment without crossing legal lines. With the Tenant Protection Act (AB 1482) firmly in place and a patchwork of local rent control ordinances layered on top, landlords across the state need more than a general understanding—they need step-by-step clarity.
Whether you’re managing your first property or you’re a seasoned investor adjusting rents for inflation, knowing how much a landlord can raise rent in California is critical to avoiding costly legal missteps. This guide unpacks the 2025 limits, notice requirements, rent control laws, and practical advice for delivering a compliant rent increase.
Too Long Didn’t Read: California law generally allows rent increases of up to 5% plus local inflation, but never more than 10% total in a 12-month period for properties covered by AB 1482. However, many cities have stricter rent control rules. Always provide proper written notice—30 or 90 days depending on the amount—and follow local ordinances. Understanding both state and local rules is essential before raising the rent.
Table of Contents
- Understanding California’s Tenant Protection Act (AB 1482)
- Exceptions to Statewide Rent Control Rules
- Differences Between State and Local Rent Control
- Required Notice Periods for Rent Increases
- Crafting a Compliant Rent Increase Letter
- Tips for Landlords Raising Rent in 2025
- Frequently Asked Questions About Rent Increases
- What Landlords Should Know Before Raising Rent
- Legal Reasons to Raise Rent in California
- How Rent Control Affects Investment Properties
Understanding California’s Tenant Protection Act (AB 1482)
The Tenant Protection Act of 2019, also known as AB 1482, is the cornerstone of statewide rent control in California. It was enacted to curb sudden rent hikes and evictions without cause in an increasingly competitive housing market. Under this law, most residential properties older than 15 years are subject to annual rent caps and just cause eviction protections.
Landlords may increase rent by 5% of the current rate, plus the percentage increase in the local Consumer Price Index (CPI). However, the total increase cannot exceed 10% in a 12-month period. This means if inflation is 3%, a landlord can raise rent by up to 8%. If inflation is 6%, the limit caps out at 10% regardless. These restrictions apply regardless of tenant turnover—so long as the same tenant remains in the unit.
Additionally, AB 1482 outlines eviction protections. You must have a legally valid reason to evict a tenant once they’ve lived in the unit for more than 12 months. These protections aim to stabilize the rental market while allowing for modest increases to reflect rising costs.
Exceptions to Statewide Rent Control Rules
While AB 1482 covers a wide swath of rental properties, several exceptions are built into the law. Single-family homes and condominiums are exempt—but only if the owner is an individual (not a corporation or REIT) and the tenant receives proper disclosure about the exemption in writing.
New construction is another major exception. Units built within the last 15 years are not subject to AB 1482. This rolling exemption means a building constructed in 2011 would become subject to the law in 2026.
Government-subsidized housing, such as Section 8 rentals, may also be exempt if governed by separate federal or state regulations. That said, even exempt units may be subject to local rent control ordinances in California, which can override state exemptions.
Differences Between State and Local Rent Control
California is unique in that statewide rules coexist with powerful local ordinances. Cities like Los Angeles, San Francisco, and Berkeley have some of the most aggressive rent control measures in the country.
For example, Los Angeles’ Rent Stabilization Ordinance (RSO) covers properties built before October 1978. It restricts rent increases to a fixed annual percentage based on CPI and allows only certain reasons for evictions. These rules are often stricter than the California rent increase limits for 2025 under AB 1482.
What complicates matters is that landlords must comply with whichever rule is more protective of the tenant. If AB 1482 allows a 10% increase but Los Angeles limits it to 4%, the local cap prevails. This patchwork makes it essential to research city-specific regulations before taking action.
Required Notice Periods for Rent Increases
Even if you’re following the rent cap, giving the tenant proper notice is non-negotiable. For increases of 10% or less, landlords must provide at least 30 days written notice. If the total increase over a 12-month period exceeds 10%, you must give at least 90 days notice.
These rules apply whether the unit is under state or local control. The notice must be delivered in writing, either personally or via certified mail with return receipt. Keep a copy of the notice and proof of delivery—you may need them in court if the tenant disputes the increase.
Failing to follow the correct notice procedure can render the rent increase invalid and leave you vulnerable to legal action.
Crafting a Compliant Rent Increase Letter
A rent increase letter in California should be both clear and legally compliant. Start with the basics: the date of the letter, tenant’s name, and the property address. Clearly state the current rent, the new rent, and the effective date of the increase.
Make sure your letter references the legal basis for the increase. For example, if your property is subject to AB 1482, cite the statute and explain how you calculated the allowable increase. If your unit is exempt, state the exemption and include the proper disclosure.
Keep your tone professional. Express appreciation for the tenant’s tenancy and offer to answer any questions. Include your contact information, and if you’re delivering the notice by hand, have the tenant sign an acknowledgment of receipt.
Tips for Landlords Raising Rent in 2025
If you plan to raise rent in 2025, first determine whether your property is subject to statewide or local rent control. Once you’ve confirmed the applicable limits, calculate the allowable increase using the CPI published for your region.
Avoid back-to-back increases. You can only raise rent once in a 12-month period under AB 1482. Track past increases to avoid going over the legal cap.
When communicating with tenants, be transparent and respectful. Many disputes start not with the rent increase itself, but with how it was handled. Give plenty of notice, explain the rationale, and document everything.
Frequently Asked Questions About Rent Increases
Tenants and landlords alike often wonder, “how much can a landlord raise rent in California?” This answer depends on several factors, including the age of the building, the owner type, and local laws. AB 1482 generally limits increases to 5% plus CPI, not to exceed 10% annually. But cities like San Jose or Oakland may impose stricter caps.
Tenants may also ask if there are limits to rent hikes when a new tenant moves in. For properties not under rent control, landlords can set rent freely at turnover. For rent-controlled units, strict rules often govern these increases too.
What Landlords Should Know Before Raising Rent
Before initiating any rent increase, review both AB 1482 and your city’s local ordinances. Many legal mistakes happen simply because landlords aren’t aware of overlapping laws. Check for exemptions, calculate the increase correctly, and document your process.
Consulting a legal expert is advisable, especially if you manage multiple properties in different jurisdictions. Local rent boards can also provide guidance.
Legal Reasons to Raise Rent in California
Raising rent legally isn’t just about cost-of-living adjustments. You may also raise rent to cover rising maintenance costs, property tax increases, or recent capital improvements. However, you must still stay within the bounds of the California tenant protection laws.
If you need to exceed the cap, your best option may be to petition your local rent board. Some jurisdictions allow landlords to apply for hardship increases under special conditions.
How Rent Control Affects Investment Properties
Rent control laws in California can influence your investment strategy. While they offer tenant stability, they also cap your revenue growth. If you’re planning to invest in a rent-controlled market, factor in slower rent growth, higher compliance costs, and stricter eviction rules.
However, rent control doesn’t mean profit is impossible. Smart upgrades, strategic property selection, and long-term planning can still yield solid returns. Just make sure to budget for legal compliance and account for capped increases when projecting future cash flow.
