California, being one of the largest states in the U.S., has laws in place to protect renters from unfair rent hikes. As housing costs continue to rise, understanding these rules becomes increasingly important for tenants.
The rent laws in California are designed to balance the rights of landlords with those of tenants, ensuring that rent increases remain fair and manageable. If you’re a tenant in California or planning to move there, it’s essential to know how rent increases are regulated.
Rent Control in California: An Overview
California’s rent control laws are governed by the California Rent Control Act and California statewide rent control laws. These laws limit how much landlords can increase rent for certain types of rental properties.
Rent control laws apply to many older buildings, but they do not cover new constructions or certain other properties. This means not all rental homes or apartments in California are subject to rent control.
The statewide rent control law, known as the California Statewide Rent Control Law (SB 329), caps how much rent can be raised each year for properties that qualify under the law.
The current rule limits annual rent increases to 5% of the current rent or $100, whichever is lower, plus the rate of inflation. This means your landlord cannot raise the rent excessively in one year, making rent more predictable for tenants.
Limits on Rent Increases: The Specifics
For most rental units in California, there are clear limits on how much the rent can be increased. For apartments or homes built before 2005, the rent increase is capped at 5% of the current rent or $100 (whichever is lower), along with an annual adjustment for inflation. This ensures that landlords can’t drastically increase rents in one go.
However, there are exceptions. If your home or apartment is new (built after 2005), it might not be subject to rent control laws. In these cases, landlords can raise the rent to market rates, but the increase cannot be excessive.
In addition to the state laws, some cities in California have stricter rent control regulations. For example, cities like Los Angeles, San Francisco, and Berkeley have their own rent control ordinances. These local rules may limit rent increases even further than the state laws.
How Often Can Rent Be Increased in California?
California law limits how frequently a landlord can increase rent. For tenants who have a lease, rent can typically only be increased after the lease term ends. If you are on a month-to-month rental agreement, your landlord can increase your rent, but the increase must follow specific rules:
If the increase is 10% or less of the current rent, the landlord must provide a 30-day notice.
If the increase is more than 10%, the landlord must give a 60-day notice.
It’s important to note that if your rent is increased too frequently or by an amount that violates state or local rent control laws, you may be able to challenge the increase.
Rent Control Exemptions in California
Not all rental properties in California are covered by rent control laws. Here are a few exemptions:
New construction: Buildings built after 2005 are typically exempt from rent control.
Single-family homes and condos: If the owner is not a corporate entity or a large landlord (owning more than two rental units), these properties are generally not subject to rent control.
Short-term rentals: If you are renting a property for a short time (less than 30 days), the rent control laws do not apply.
In such cases, rent increases may be higher, but even then, the landlord cannot raise the rent too much in one go.
Tenant Rights in California
If you feel your rent increase is unfair or violates California’s rent control laws, you have rights to challenge the increase. You can:
- File a complaint with local government agencies or rent control boards.
- Challenge the rent increase in court if necessary, especially if the increase exceeds legal limits.
Tenants are also protected from retaliatory actions by landlords. For example, a landlord cannot increase the rent or terminate a lease in retaliation for a tenant exercising their legal rights, like filing a complaint about a rent increase.
Rent increases can be frustrating for tenants, especially in expensive areas like California. However, knowing the state and local laws that regulate rent hikes can help you protect yourself and ensure that your landlord follows the rules. While rent control laws in California do offer protections, they don’t apply to every rental property.
Make sure to check if your property is covered by these laws and understand your rights when it comes to rent increases. Being informed is the first step in ensuring a fair rental experience.
