How Much Can a Landlord in California Legally Raise the Rent in 2023

Rent control laws in California can be confusing for both tenants and landlords. Understanding your rights and responsibilities is crucial to ensure that you are not being taken advantage of or breaking the law.

What is AB1482?

AB1482 was implemented in 2019 to protect tenants from unreasonable rent increases. Under AB1482, landlords must follow specific guidelines when increasing the rent for their rental properties. These guidelines include the percentage by which the rent can be increased during 12 months and the frequency at which rent increases can occur. The law is set to expire in 2030; it will be up to the state legislature to decide whether to renew it or create a new plan to regulate rent in California.

The primary purpose of AB1482 is to provide stability for tenants by limiting how much and how often landlords can increase the rent. It is designed to protect tenants from sudden, large rent increases that may be difficult for them to afford. However, it is essential to note that AB1482 does not freeze rent prices. Landlords can still increase the rent, but they must do so within the guidelines outlined in the law.

How Much Can Landlords Raise Rent in California?

According to AB1482, landlords can raise the rent for 12 months by 5% plus the Consumer Price Index (CPI). However, there is a cap on how much the rent can be increased. The maximum amount that the rent can be improved is 10%.

For example:

• If the CPI is 2.5%, the landlord can only raise the rent by 7.5% during the 12 months.
• If the CPI is 3%, the landlord can only raise the rent by 8% during the 12 months.
• If the CPI is 1%, the landlord can raise the rent by 6% during the 12 months.

It’s important to note that AB1482 only applies to rental properties that are not exempt from the law. Our commercial properties, single-family homes, condos, and properties built within the past 15 years are exempt from AB1482. In those cases, landlords can charge whatever rent they choose as long as it is not illegal.

How Often Can Landlords Raise Rent in California?

According to AB1482, landlords can only increase the rent once every 12 months. If a landlord tries to increase the rent more frequently than that, the tenant has the right to file a complaint with the local housing agency.

Tenants need to understand their rights regarding renting increases and the procedures for raising any concerns or issues they may have with their landlord. If you have any questions or concerns about your rental situation in California, don’t hesitate to contact a local housing agency or a qualified real estate professional for guidance. They can provide you with more information about your rights and responsibilities as a tenant and help you navigate any issues you may be facing.

Is AB1482 Permanent?

No, AB1482 is set to expire in 2030. After that, it will be up to the state legislature to decide whether or not to renew the law or come up with a new law to regulate rent in California.

Importantly, the expiration of AB1482 does not mean that rent control will no longer exist in California. It means that the current law will no longer be in effect, and the state legislature will have the opportunity to decide on a new plan for regulating rent in the state.

If AB1482 is not renewed or replaced, rental prices in California could increase more freely without the restrictions of the current law. However, it’s important to remember that the real estate market is constantly changing, and many factors can impact rental prices. It’s difficult to predict exactly what will happen once AB1482 expires, but it’s a good idea for tenants to stay informed about the rental market in their area and be prepared for potential changes.

If you have any questions or concerns about your rental situation in California, don’t hesitate to reach out to a local housing agency or a qualified real estate professional for guidance. They can provide you with more information about your rights and responsibilities as a tenant and help you navigate any issues you may be facing.

Conclusion

Understanding your rights and responsibilities as a tenant or landlord in California is crucial in order to ensure that you are following the law and not being taken advantage of. Suppose you have any questions about AB1482 or your rights and responsibilities as a tenant or landlord. In that case, it is recommended that you reach out to a local housing agency or a qualified real estate professional for guidance.