What are the rules for rent increases in California?

If you’re a landlord or tenant in California, it’s important to understand the rules for rent increases. California has some of the strongest tenant protection laws in the country, and it’s crucial to follow them to avoid legal issues. In this article, we’ll cover the key rules for rent increases in California, including how much landlords can increase rent, how often they can do it, and what notice they need to give tenants.

How Much Can Landlords Increase Rent in California?

Under California law, landlords can only increase rent by a certain percentage each year. The maximum allowable increase is currently 5% plus the local rate of inflation, or 10%, whichever is lower. This means that if the local rate of inflation is 2%, the maximum allowable increase would be 7%. However, if the local rate of inflation is 6%, the maximum allowable increase would be 5%.

It’s important to note that this rule only applies to rent-controlled units. If your unit is not rent-controlled, your landlord can increase rent by any amount they choose, as long as they give proper notice.

How Often Can Landlords Increase Rent in California?

Landlords in California can only increase rent once every 12 months. This means that if your landlord increases your rent in January, they cannot increase it again until the following January. However, if you move out and a new tenant moves in, the landlord can set the rent at any amount they choose.

What Notice Do Landlords Need to Give Tenants Before Increasing Rent?

Under California law, landlords must give tenants at least 30 days’ notice before increasing rent. If the rent increase is more than 10%, landlords must give tenants at least 60 days’ notice. The notice must be in writing and must include the amount of the rent increase, the date it will take effect, and the reason for the increase.

FAQs

Can landlords increase rent during a lease term?

If you have a fixed-term lease, your landlord cannot increase rent until the lease term is up. However, if you have a month-to-month lease, your landlord can increase rent with proper notice.

Can landlords increase rent for no reason?

If your unit is not rent-controlled, your landlord can increase rent for any reason, as long as they give proper notice. However, if your unit is rent-controlled, your landlord can only increase rent by a certain percentage each year.

Can tenants negotiate rent increases with landlords?

Tenants can try to negotiate rent increases with landlords, but landlords are not required to agree to lower the rent. It’s always a good idea to try to negotiate, but be prepared to pay the increased rent if the landlord refuses to lower it.

Conclusion

In conclusion, understanding the rules for rent increases in California is crucial for both landlords and tenants. Landlords can only increase rent by a certain percentage each year, and they must give proper notice before doing so. Tenants should be aware of their rights and should always try to negotiate rent increases with their landlords. By following these rules, both landlords and tenants can avoid legal issues and maintain a positive rental relationship.

Kurby Team

The Kurby Content Team is a diverse group of seasoned real estate experts dedicated to providing insightful, reliable information for homebuyers, real estate investors, and real estate agents. With backgrounds ranging from real estate brokerage, property investment, and residential home buying, our team combines decades of experience with a passion for demystifying the real estate world. We at Kurby are committed to helping you make informed, successful real estate decisions. Whether you're a first-time homebuyer, a seasoned investor, or a real estate professional, count on the Kurby Content Team to deliver the most relevant, actionable real estate content you need.