Statewide Rent Cap (Tenant Protection Act/AB 1482)
- For most residential properties in California, the maximum rent increase allowed between August 1, 2024, and July 31, 2025, is 8.6%.
- The law limits annual rent hikes to the lower of:
- 5% plus the local inflation rate (based on the California Consumer Price Index), or
- 10% of the current rent.
- Rent cannot be raised more than twice in a 12-month period, and the total of those increases cannot exceed the annual cap.
- The cap does not apply to new tenancies (the initial rent set for a new tenant), only to increases for existing tenants.
Exemptions to the Rent Cap
The following types of housing are generally excluded from the statewide rent cap:
- Housing built within the last 15 years
- Affordable housing units with government restrictions
- Single-family homes or condos (unless owned by a corporation, REIT, or LLC with at least one corporate member)
- Duplexes where the owner lives in one of the units
- Units already subject to more restrictive local rent control ordinances
Notice Requirements
- Landlords must provide at least 30 days’ written notice for increases under 10% in a 12-month period.
- For increases above 10% (rare under the statewide cap), at least 90 days’ written notice is required.
Local Rent Control
- Some cities and counties (like Los Angeles, San Francisco, and others) have stricter local rent control laws. Where local rules are more protective, those rules take precedence.
Upcoming Legislative Changes
- There are proposals in 2025 (such as AB 1157) to further reduce the statewide rent cap to 2% plus inflation, or 5% (whichever is lower), and to eliminate some exemptions (such as for single-family homes and condos).
- These changes are not yet law but are being debated and could impact future rent increase limits.
Additional 2025 Tenant Protections
- Rent Reporting: Landlords must offer tenants the option to have on-time rent payments reported to at least one credit bureau, helping tenants build credit. For existing leases, this must be offered by April 1, 2025; for new leases, at signing and annually thereafter.
- Security Deposit Transparency: Starting July 1, 2025, landlords must document a rental unit’s condition with time-stamped photos before move-in, after move-out, and after repairs/cleaning, providing a clear record for any deposit deductions.
- Stricter Eviction Protections: New laws (like SB 567) further limit “just cause” evictions and require more documentation and relocation assistance for certain evictions.
2025 California Rent Increase Rules
| Rule/Protection | 2025 Standard (Aug 2024–July 2025) |
|---|---|
| Statewide Rent Cap | 8.6% (or 5% + inflation, max 10%) |
| Max Increases per Year | 2 (total cannot exceed annual cap) |
| Notice for <10% Increase | 30 days |
| Notice for >10% Increase | 90 days |
| Exemptions | New buildings, affordable units, some SFH/condos |
| Rent Reporting Option | Required by April 1, 2025 (existing leases) |
| Security Deposit Photo Rule | Required July 1, 2025 |
| Stricter Eviction Protections | In effect |
Most California tenants in 2025 are protected by a statewide rent cap of 8.6%, with additional new rights around credit reporting, security deposits, and eviction protections. Always check for stricter local laws, and watch for possible legislative changes that could further limit rent increases in the near future.
Sources
- https://oag.ca.gov/system/files/media/Know-Your-Rights-Tenants-English.pdf
- https://www.hoffmanforde.com/blog/landlord-tenant-laws-for-2025-in-california/
- https://bfpminc.com/californias-new-real-estate-laws/
- https://caanet.org/bill-seeks-to-reduce-ab-1482-rent-cap/
- https://www.lassd.org/resource/rent-increases/
