California Statewide Rule
California Caps Rent Statewide and Allows Local Rent Control
Key Facts
- Local rent control
- Allowed (limited by Costa-Hawkins)
- Statewide rent cap
- 5% + local CPI, max 10% (AB-1482)
- Statutes
- Civ. Code § 1947.12 (AB-1482); §§ 1954.50+ (Costa-Hawkins)
- Cities with rent control
- LA, SF, Oakland, Berkeley, Santa Monica, San Jose, West Hollywood
Summary
California limits annual rent increases statewide to 5% plus the local change in the cost of living, capped at 10%, under the Tenant Protection Act of 2019 (AB-1482). It also lets cities and counties enact their own stricter rent-control ordinances, subject to the limits of the Costa-Hawkins Rental Housing Act.
Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded.
Full Breakdown
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.
Violations & Penalties
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.
Frequently Asked Questions
Is rent control legal in California?
Can a city in California pass its own rent control?
How much can rent increase in California each year?
Sources
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