California Caps Rent Statewide and Allows Local Rent Control

Under Civil Code § 1947.12, a landlord cannot raise rent over a 12-month period by more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower, measured against the lowest rent in the prior 12 months. The statewide cap exempts housing issued a certificate of occupancy within the last 15 years and single-family homes or condos alienable separate from any other unit when owned by an individual (with proper notice). On top of this, California permits local rent-control ordinances, and cities including Los Angeles and San Francisco set lower caps. But the Costa-Hawkins Rental Housing Act (Civ. Code §§ 1954.50 et seq.) limits those local laws: it exempts single-family homes, condos, and units first occupied after February 1, 1995, and lets owners reset rent to market on a new tenancy.

A tenant charged above the lawful AB-1482 cap or a stricter local cap can demand a refund of the overcharge and a rollback; the excess increase is void. Local rent boards and city attorneys enforce municipal ordinances, and tenants may sue, sometimes for treble damages.