California Rent Increase Laws 2025: What Tenants Should Know

In 2025, California continues to enforce strict rent increase regulations under the Tenant Protection Act of 2019 (AB 1482). This law, designed to protect tenants from excessive rent hikes, applies to most residential properties across the state. Here’s a detailed guide on what tenants need to know about rent increases in California this year.

Key Provisions of AB 1482

1. Annual Rent Increase Limits:
   • Landlords can raise rents by 5% plus the local Consumer Price Index (CPI), with a maximum cap of 10% per year, whichever is lower.
   • For example, if the CPI for your region is 3%, the maximum allowable increase would be 8% (5% + 3%). If the CPI is 6%, the cap remains at 10%.
2. Applicability:
   • The law applies to most multi-family rental properties built before January 1, 2005.
   • Single-family homes and condos are exempt unless owned by corporations or real estate investment trusts (REITs).
3. Notice Requirements:
   • Landlords must provide written notice for any rent increase:
     • 30 days’ notice for increases of 10% or less.
     • 90 days’ notice for increases exceeding 10% (though such increases are rare due to the cap).
4. Local Rent Control Ordinances:
   • Cities like Los Angeles, San Francisco, and Oakland have additional rent control laws that may impose stricter limits than AB 1482.
   • For example, in Los Angeles, rent increases under the Rent Stabilization Ordinance (RSO) are tied to local CPI changes and capped at lower rates than the statewide law.

Exemptions and Special Cases

1. Newly Built Properties:
   • Properties with a certificate of occupancy issued after January 1, 2005, are exempt from AB 1482.
   • In some cases, newly constructed units may also be exempt under local laws.
2. Vacancy Decontrol:
   • When a tenant moves out voluntarily or is evicted for just cause, landlords can reset the rent for new tenants without adhering to the previous cap.
3. Emergency Rent Caps:
   • In areas affected by emergencies (e.g., wildfires), temporary rent caps may apply under Penal Code Section 396. For example, in Los Angeles County, emergency caps restrict increases to no more than 10% above pre-emergency levels through July 2025.

How Rent Increases Are Calculated

To calculate a legal rent increase:

1. Determine the current monthly rent.
2. Add 5% to the local CPI percentage.
3. Apply the lower of this sum or the maximum cap of 10%.

For instance:

• If your current rent is $1,500 and the local CPI is 2%, your maximum increase would be 1,500×(5%+2%)=$1,605.
• If the CPI is higher (e.g., 6%), your increase would be capped at 1,500×10%=$1,650.

Additional Tenant Protections in 2025

1. Prohibition of “Junk Fees”:
   • Landlords cannot charge extra fees unrelated to rent payments, such as fees for paying by personal check.
2. Eviction Protections:
   • Tenants cannot be evicted solely for landlords to re-list units at higher rents during emergency periods.
3. Credit Reporting Options:
   • Landlords must offer tenants the ability to report positive rental payment history to credit agencies starting April 2025.

What Tenants Should Do

• Check Your Lease: Ensure your property falls under AB 1482 or local ordinances.
• Monitor Notices: Verify that any rent increase complies with legal limits and notice requirements.
• Stay Informed: Research local ordinances for stricter protections that may apply in your city.

California’s rent increase laws in 2025 aim to balance tenant protections with landlord rights amid ongoing housing challenges. By capping annual rent hikes at a reasonable level and enforcing strict notice requirements, these laws provide stability for renters while addressing inflationary pressures in the housing market. Tenants should stay informed about their rights under AB 1482 and local ordinances to ensure compliance and avoid unlawful increases.

Sources

1. https://www.coastlineequity.net/california-rent-increase-2025-guide
2. https://www.hoffmanforde.com/blog/landlord-tenant-laws-for-2025-in-california/
3. https://rentpost.com/resources/article/raise-rent-laws-in-california/
4. https://www.linkedin.com/pulse/2025-landlord-tenant-law-updates-key-changes-compliance-lucas-kyslc
5. https://caanet.org/gov-newsom-extends-rent-caps-for-residential-rental-properties-in-l-a-firestorm-recovery/