California Rent Increase Laws 2025: What Tenants Should Know

Starting in 2025, California’s rent increase laws are governed primarily by the California Tenant Protection Act (AB 1482). This legislation establishes specific limits on how much landlords can increase rent for most residential properties.

Key Provisions of California Rent Increase Laws for 2025

• Maximum Allowable Increase: Rent increases are capped at 5% plus the local Consumer Price Index (CPI) or 10%, whichever is lower. This means that if the CPI indicates a rise of 3%, the maximum allowable increase would be 8% (5% + 3%). Conversely, if the CPI rises by 7%, the maximum increase would still be capped at 10%.
• Notice Requirements: Landlords must provide tenants with a written notice of:
  • 30 days for increases of 10% or less.
  • 90 days for increases exceeding 10%.
• Exemptions: Certain properties are exempt from these regulations, including:
  • Single-family homes or condominiums owned by individuals (not corporations).
  • Buildings that are less than 15 years old.

Local Variations

While AB 1482 sets a baseline for rent increases, many cities in California have their own rent stabilization ordinances that may impose stricter limits. Notable examples include:

• Los Angeles: The Rent Stabilization Ordinance (RSO) controls rent hikes on covered units.
• San Francisco: Known for its stringent rent control laws, enacted in 1979.
• Oakland: Implements a Rent Adjustment Program to limit increases and protect tenants from unjust evictions.

Calculation Example

To illustrate how rent increases are calculated under these laws:

• If a tenant’s current rent is $1,500 and the local CPI is reported at 2.3%, the maximum allowable rent increase would be:

$$\text{New Rent}=\text{Current Rent}+\left(\text{Current Rent}\times (5\%+\text{CPI})\right)=1500+(1500\times 0.073)=1609.50$$If the CPI were higher, say at 5.8%, the maximum allowable increase would be capped at 10%, leading to a new rent of $1,650.

Understanding these regulations is crucial for both tenants and landlords in California as they navigate the rental market in 2025. Staying informed about your rights and responsibilities can help ensure fair treatment and stability in housing costs amidst ongoing economic challenges.

Sources

[1] https://www.coastlineequity.net/california-rent-increase-2025-guide
[2] https://www.steadily.com/blog/rent-increase-laws-regulations-california
[3] https://rentpost.com/resources/article/raise-rent-laws-in-california/
[4] https://www.hoffmanforde.com/blog/landlord-tenant-laws-for-2025-in-california/