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How Much a Landlord Can Raise Rent Under California Rules

Castelblanco Law Group > Tenant lawyers in California, United States  > How Much a Landlord Can Raise Rent Under California Rules
A man signing a rental agreement on a clipboard with apartment keys nearby, while two women stand in the background, suggesting a landlord-tenant interaction related to rent terms.

If you’re renting in California, you already know how stressful unexpected rent hikes can be. Under the Tenant Protection Act of 2019 (AB 1482), most landlords must limit annual increases to 5 percent plus regional CPI—and only once every 12 months. Yet, exemptions, varying notice rules, and local ordinances can complicate the picture. Whether you’re facing a surprise notice or weighing your options, guidance from established tenant lawyers can make all the difference. 

In the following text, we’ll explain statewide caps, calculate allowable hikes, cover notice requirements, highlight exempt properties, detail city-specific limits, and show you how to challenge unlawful increases. Read on to get clear, practical advice and protect your rights.

California Rent-Increase Limits: Essential Overview

Under California’s Tenant Protection Act of 2019 – AB 1482, landlords may increase rent by no more than 5 percent plus the annual change in the regional Consumer Price Index. This cap applies statewide to most apartments and multiunit buildings occupied for over twelve months, preventing abrupt cost spikes and offering predictable limits for tenants. Local agencies—such as the LA Housing & Community Investment Department or the San Francisco Rent Board—publish CPI data used to calculate permissible hikes. Exemptions include new construction (15-year carve-out) and individual, natural-person ownership of single-family homes or condos.

Maximum Rent Increase Allowed

California’s maximum rent increase combines two parts: a base percentage and an inflation adjustment. First, a flat 5 percent cap guarantees landlords can cover routine cost increases. Next, regional CPI figures reflect local economic trends, ensuring rent hikes stay aligned with rising living expenses. Together, these elements form a transparent formula that both tenants and property owners can easily verify against publicly available data.

Fixed 5% Base Cap

Under AB 1482, the first component of any rent hike is a flat 5 percent increase, regardless of inflation levels. This baseline ensures that landlords can cover routine expenses and maintenance, even when the regional CPI is minimal or negative.

Local CPI Adjustments

After applying the 5 percent base, landlords add the change in the regional Consumer Price Index. Several local agencies publish CPI data for their jurisdictions: the LA HCIDLA, the San Francisco Rent Board,  the Oakland Rent Adjustment Program, the West Hollywood Rent Stabilization Division, and the San Diego Housing Commission. You can also consult the U.S. Bureau of Labor Statistics for broader inflation figures. Always use the most recent twelve-month CPI percentage for your specific area to calculate the maximum lawful increase.

Example Calculation

Suppose your rent is $1,800 and your region’s CPI rose by 2 percent. The formula allows a 5 percent cap plus 2 percent inflation, totaling a 7 percent maximum increase. Multiplying $1,800 by 1.07 yields $1,926, so the highest lawful new rent is $1,926 per month.

How Often Can Landlords Raise Rent?

California law prohibits more than one rent increase within any 12 months. The “measurement date” resets each time the rent is raised, meaning landlords must wait a full year from that date before proposing another hike. This rule applies to all units covered by AB 1482, including apartments, duplexes, and multi-unit buildings rented for more than a year. Exempt properties may have different timelines, so it is always advisable to check local ordinances or consult the relevant state statute. Consistent intervals help tenants plan their budgets and avoid surprise increases.

Rent Increase Notice Requirements

Landlords must supply written notice before raising rent, giving tenants clear lead time to assess the change and budget accordingly. Under AB 1482, most covered units see notice periods tied directly to the size of the proposed increase. While this statewide rule sets the floor, some cities—such as Berkeley, Santa Monica, or West Hollywood—may require longer notice under local ordinances (for details, check your city’s housing department website).

30-Day Notice (Up to 10%)

When a rent hike is 10 percent or less, landlords are required to issue a 30-day written notice. Acceptable delivery methods include personal hand-delivery, first-class mail, or email, provided the tenant has previously given written consent. The notice must state the current rent, the new amount, the effective date (no sooner than 30 days after delivery), and provide instructions on where to make the payment. For example, if your rent is $2,000 and your landlord plans a 10 percent increase, they must send notice at least 30 days before your first $2,200 payment is due. Tenants can verify the notice’s validity by requesting a return receipt or tracking number. For a free template, see the California Department of Consumer Affairs.

90-Day Notice (Over 10%)

Increases above 10 percent require a 90-day notice. This extended period reflects the greater financial impact on tenants. If your landlord informs you of a 12 percent hike on a $1,500 rent, they must wait three full months—90 days—before implementing the $1,680 rate. Any shorter notice renders the increase unenforceable until proper notice is given. When municipalities mandate longer waits, those timelines supersede AB 1482’s minimum.

Exempt Properties and Exceptions

Not every rental falls under AB 1482’s 5 percent + CPI cap. Specific units—such as individually owned houses, condos, and newly constructed buildings—are exempt, giving landlords more leeway. Knowing which properties qualify helps tenants anticipate whether stricter statewide or local limits apply to their lease.

Single-Family Homes & Condos

AB 1482 excludes most single-family homes and condos owned by natural persons rather than corporations or LLCs. To claim this exemption, an owner must file a written declaration with the county assessor or the recorder’s office. Tenants can request a copy of that filing or search property records online through your county’s website (for example, the Los Angeles County Registrar-Recorder/County Clerk). If ownership transfers to a corporate entity—or the owner abandons personal ownership—the exemption ends, and the unit becomes subject to rent caps once more.

New Construction (15-Year Rule)

Units with certificates of occupancy issued within the last 15 years are exempt from rent-increase caps to encourage development. This carve-out applies to any building completed after the effective date of AB 1482 (January 1, 2020) and remains in effect for 15 years from that date. To verify eligibility, tenants can check permit records via city portals such as the San Francisco Planning Department or the Los Angeles Department of Building and Safety. Once the 15-year window closes, the property automatically falls under AB 1482’s protections.

Exemption Durations

Exemptions have clear expiration triggers. Owner-occupied single-family homes lose protection if they are sold to a corporate buyer or if the ownership documents are changed. Newly constructed units revert to capped status exactly 15 years after the date of their certificate of occupancy. After an exemption ends, landlords must provide proper notice and adhere to both statewide and any tighter local ordinances. Tenants may confirm exemption timelines by consulting the California Department of Real Estate or requesting official documentation. Understanding these durations ensures renters know precisely when legal limits begin to apply.

Local Adjustments & Limits

California cities can enforce tighter rent-increase rules or layer additional requirements on top of AB 1482’s statewide framework. These local ordinances often use the same CPI data but apply different formulas, absolute ceilings, or special provisions for older buildings. Tenants should always verify whether their municipality has its own rent board or housing department, since local caps override state limits where they are more restrictive.

Los Angeles 

In Los Angeles, the Rent Stabilization Ordinance (RSO) applies to most multi-unit buildings constructed before October 1, 1978. Under the RSO, landlords may increase rent by the lesser of 8 percent or 3 percent plus the annual percentage change in the Los Angeles–Long Beach–Anaheim Consumer Price Index (CPI). For instance, if CPI rose by 4 percent, the allowable hike equals 3 percent + 4 percent = 7 percent, which is below the 8 percent ceiling. Conversely, if CPI jumps by 6 percent, the maximum increase is capped at 8 percent. Exempt properties include newer buildings, single-family homes, and owner-occupied duplexes. To confirm which CPI figure applies, tenants can check the HCIDLA or consult the City Clerk’s online ordinance database. The LA Housing & Community Investment Department also publishes annual RSO adjustment tables and offers tenant workshops on rent stabilization.

San Francisco 

San Francisco’s Rent Ordinance applies to multiunit buildings constructed before June 13, 1979, and sets annual increases at 60 percent of the annual CPI change for the SF-Oakland-Hayward region, not to exceed 7 percent. For example, a 5 percent CPI rise yields a 3 percent increase (60 percent of 5 percent), while a 12 percent CPI spike still tops out at 7 percent. The Rent Board updates the allowable percentage annually based on data from the Bureau of Labor Statistics. Landlords must also provide each tenant with a “Notice of Rent Increase” form supplied by the Rent Board, specifying the calculation and effective date. Tenants can appeal increases they believe exceed permissible limits by filing a petition with the Rent Board, which offers mediation services and holds public hearings. For details, visit the San Francisco Rent Board website or review the municipal code online.

Even in other jurisdictions—such as Berkeley, Oakland, or West Hollywood—local rent programs may impose additional caps, vacancy-control rules, or just-cause eviction protections. Checking your city’s housing authority or rent board site ensures you know the precise limits and your options for contesting unlawful hikes.

Tenant Rights & Dispute Remedies

A person in judicial robes holding a balance scale, symbolizing legal fairness

California renters enjoy multiple protections against improper rent increases. Whether you’re dealing with a simple notice or a complex exemption dispute, knowing each step to challenge an unlawful hike can save you thousands of dollars and prevent housing instability. Below are detailed remedies—from informal objections to formal legal actions—so you can choose the path that best fits your situation.

How to Contest an Illegal Increase

If you suspect your landlord has exceeded legal limits, begin by documenting everything. Save the notice (email or paper) and note its delivery date and stated percentage. Draft a written objection stating the reasons you believe the increase violates AB 1482 or local ordinances (for example, it exceeds “5 percent plus CPI” or ignores a 12-month waiting period). Please send this letter via certified mail with a return receipt requested. Once delivered, the landlord must respond. If they refuse to adjust the rent, gather proof: copies of relevant statute sections (AB 1482 text), CPI tables from the U.S. Bureau of Labor Statistics, and your rent payment history. Next, file a petition with your local rent board using their online forms. These agencies provide mediation services, informal hearings, and can issue binding orders to correct or rescind unlawful hikes within a matter of weeks.

Seeking Relief Under AB 1482

When administrative channels fail, small claims court offers a straightforward venue to recover overcharged rent. Under California law, you can sue for up to $10,000 without a lawyer. Prepare a claim by printing your certified mail receipt, copies of the rent increase notice, and evidence of the permissible cap. On filing day, pay a filing fee (usually under $100), then serve the landlord with court papers via a process server or certified mail. At your hearing, present your documents, explain how the increase exceeded “5 percent plus CPI,” and request a refund for the overcharge. Courts may also award limited attorney fees if you prevail. For injunctive relief or larger claims, consult civil court procedures, where you can seek a court order barring further unlawful increases and awarding damages beyond the small-claims cap.

When to Hire a Lawyer

Some disputes involve complex issues—such as landlords claiming chained exemptions, incorrect CPI calculations, or retaliation after you complained. In these situations, early legal advice can clarify your rights and deadlines. Tenant attorneys can draft stronger petitions, negotiate settlements, and represent you in civil court. 

Alternative Dispute Resolution

Mediation can resolve rent disputes faster and more amicably than a court. Local rent boards and community mediation centers often provide free or low-cost services. During mediation, a neutral facilitator helps you and your landlord reach an agreement—perhaps a smaller rent increase schedule or an extended payment plan. If successful, the deal becomes binding without the need for formal hearings.

Statute of Limitations & Deadlines

Time matters: California’s statute of limitations for contract disputes, including unlawful rent increases, is four years. However, petitions to local rent boards typically must be filed within 30 to 60 days of receiving notice. Small claims actions must be filed within six months of the alleged overcharge. Keep a calendar of key dates—notice receipt, local petition deadlines, and court filing windows—to ensure you don’t lose your right to challenge.

Conclusion 

You now understand that California’s AB 1482 limits most rent hikes to 5 percent plus the regional Consumer Price Index (CPI) once every 12 months, requires 30- or 90-day notice, and exempts owner-occupied homes and new construction. Local ordinances in Los Angeles and San Francisco may impose tighter rules. With this knowledge—and support from experienced tenant lawyers—you can verify any rent-increase notice, calculate the legal maximum, and challenge unlawful hikes to protect your rights.

FAQ

What Is the Maximum Rent Increase Allowed in California in 2025?

Under AB 1482, landlords may raise rent by up to 5 percent plus the regional CPI change once every 12 months. For 2025, check your city’s published CPI percentage—if it’s 3 percent, the total cap is 8 percent. Local ordinances may set lower limits in some municipalities.

Can Landlords Raise Rent Every Year?

Yes—covered units can see one increase per 12-month period. The measurement date resets on the effective date of each hike. Exempt properties may have different schedules, and some cities impose longer intervals between increases.

What Is the New Law for Renters in California?

The Tenant Protection Act of 2019 (AB 1482) restricts most annual rent increases to 5 percent plus the Consumer Price Index (CPI), requires proper notice, and provides eviction protections. It exempts new construction, certain single-family homes, and imposes statewide just-cause rules.

How Do I Calculate My Rent Increase in California?

Multiply your current rent by (1 + 5 percent + regional CPI percentage). For example, $2,000 × 1.07 = $2,140 if CPI is 2 percent. Use your local rent board’s CPI figures for accuracy.

What if an Increase Exceeds 10%?

Increases above 10 percent require a 90-day notice. If a landlord provides less notice, the hike is invalid until proper notice arrives. You can challenge the notice in writing and petition your local rent board.

Do Exemptions Apply to My Unit?

Single-family homes owned by individuals, condos, and buildings under 15 years old are typically exempt from AB 1482 caps. Verify exemption filings via county property records or request documentation from your landlord.

How Do Local Ordinances Affect Me?

Cities like Los Angeles and San Francisco set their own formulas—often combining a base percentage with the Consumer Price Index (CPI), but capping hikes at specified limits. Local rules override state caps when they are more restrictive, so always check your municipality’s rent board website.

Eric Castelblanco, Attorney/Founder

Eric Castelblanco, founder and managing attorney of Castelblanco Law Group, APLC, has championed tenants' rights for over two decades, securing over $200 million in verdicts and settlements. His law firm also specializes in every aspect of personal injury accident cases, delivering exceptional ou...

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