California Rent Increase Laws 2025: What Tenants Should Know
Statewide Rent Control
In 2025, California’s Tenant Protection Act (AB 1482) continues to provide crucial protections for renters across the state. The law caps annual rent increases at 5% plus the local Consumer Price Index (CPI), or 10%, whichever is lower.
This means that for most tenants, rent hikes are limited to a maximum of 10% per year, helping to maintain housing affordability.
Regional Variations
While the statewide law sets a baseline, some areas have more stringent regulations:
- Los Angeles County: As of January 1, 2025, the annual allowable rent increase is linked to 60% of the CPI’s percentage change over the previous year.
- San Francisco: From March 1, 2024, to February 28, 2025, the permitted rent increase percentage is set at 1.7%.
- Berkeley: Beginning January 1, 2025, eligible landlords may raise rent ceilings by 2.1% for tenancies starting prior to January 1, 2024.
Tenants should check their local rent control ordinances, as city-specific rules may offer additional protections beyond the state law.
Notice Requirements
Landlords must provide proper written notice before implementing any rent increase:
- 30 days’ notice for increases less than 10%
- 90 days’ notice for increases greater than 10%
Frequency of Increases
Under state law, landlords are permitted to raise rent twice every 12 months, provided they give adequate notice and do not exceed the annual cap.
Exemptions
It’s important to note that certain properties are exempt from California’s rent control laws, including:
- Housing built within the last 15 years
- Single-family homes and condos (with some exceptions)
- Duplexes where the owner occupies one of the units
Additional Protections
The Tenant Protection Act also provides “just cause” eviction protections, meaning landlords must have a valid reason to evict tenants in most cases.
Recent Developments
Governor Gavin Newsom recently extended rent-gouging protections in response to firestorms in Los Angeles County. Through March 8, 2025, rent increases are prohibited from exceeding 10% in affected areas.
Credit Reporting Option
A new law effective January 1, 2025, requires landlords to offer tenants the option to report positive rental payment history to at least one nationwide credit reporting agency. This can help tenants build their credit scores.
What Tenants Should Do
- Know your rights: Familiarize yourself with both state and local rent control laws.
- Check for proper notice: Ensure your landlord provides appropriate written notice for any rent increase.
- Verify the increase amount: Calculate the maximum allowable increase based on your local CPI and the statewide cap.
- Understand exemptions: Determine if your rental unit is covered by rent control protections.
- Document everything: Keep records of all communications with your landlord, including rent increase notices.
- Seek help if needed: If you believe your landlord has violated rent control laws, contact local tenant rights organizations or legal aid services for assistance.
- Consider credit reporting: Ask your landlord about the option to report your rent payments to credit bureaus to help build your credit score.
By staying informed about these laws and your rights as a tenant, you can better navigate the rental landscape in California and ensure you’re not being charged more than legally allowed.
Remember that while landlords have the right to increase rent within legal limits, tenants have protections to prevent excessive or unfair rent hikes.
Sources:
- [1] https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260AB246
- [2] https://caanet.org/governor-extends-protections-against-rent-gouging-tied-to-l-a-firestorms/
- [3] https://www.doorloop.com/laws/california-rent-control-laws
- [4] https://www.coastlineequity.net/california-rent-increase-2025-guide
