California Rent Control Laws in 2024
California has some of the strongest rent control laws in the country. Rent control refers to laws that limit how much and how often a landlord can raise the rent on certain types of residential properties. The goal of rent control is to promote housing stability and affordability for tenants.
Rent control has existed in various forms in California since the late 1970s. The state passed the Tenant Protection Act of 2019, also known as AB 1482, which placed statewide rent caps and just cause eviction protections for tenants.
AB 1482 limits annual rent increases to 5% plus the rate of inflation, but never above 10% total in a 12-month period. The law applies to residential properties over 15 years old.
Prior to AB 1482, local governments in California could enact their own rent control ordinances, but state law prevented rent control from applying to single family homes and condos. AB 1482 closed this loophole and expanded rent control protections for millions of Californians.
What is Covered Under AB 1482?
The Tenant Protection Act of 2019 (AB 1482) applies to residential properties built before 2005, including:
- Apartments
- Condos
- Multi-unit houses up to 4 units
AB 1482 limits rent increases to 5% plus the regional Consumer Price Index (CPI), up to a maximum of 10% per year.
The law does NOT apply to the following exempt properties:
- Single family homes
- Condos
- Residential properties built within the last 15 years
Owners of exempt properties can raise rents without any cap under state law. However, some local jurisdictions have additional rent control laws that may include single family homes and other exempt units under AB 1482.
AB 1482 provides statewide rent caps and eviction protections for applicable residential properties built before 2005. It does not apply to single family homes, condos and new construction.
Just Cause Eviction Protections
AB 1482 provides just cause eviction protections for tenants. This means your landlord can't evict you without having a valid "just cause."
There are two types of just causes for eviction under AB 1482:
At-Fault Just Causes
At-fault just causes are reasons where the tenant did something wrong, such as:
- Failure to pay rent
- Breach of lease
- Nuisance behavior
- Illegal activity on the property
If your landlord wants to evict you for an at-fault just cause, they must provide you a 3-day notice to pay rent or quit. This gives you a chance to fix the issue before facing eviction.
No-Fault Just Causes
No-fault just causes are reasons outside the tenant's control, such as:
- Landlord wants to move into the unit
- Taking the property off the rental market
- Demolition or substantial remodel of the building
For no-fault causes, the landlord must provide a 30-day or 60-day notice, depending on the situation. You can't "cure" or fix a no-fault cause.
The key takeaway is your landlord can't arbitrarily evict you without having a valid just cause under California law. This provides important eviction protections for renters across the state.
Are Month-to-Month Leases Impacted by AB 1482?
AB 1482 rent caps and eviction protections apply to all residential rental agreements that are covered, including both fixed-term leases and month-to-month rental agreements.
The law does not make any distinction based on the type of lease. As long as the rental property meets the eligibility requirements under AB 1482, tenants with month-to-month leases are also protected by the statewide rent cap and just cause eviction rules.
This means landlords cannot force month-to-month tenants to sign a long-term lease in order to avoid complying with the rent control provisions. Whether you have a periodic month-to-month agreement or a fixed-term annual lease, if your unit is covered, the rent increases are limited to 5% plus CPI, not to exceed 10% per year.
Eviction rules for month-to-month tenants are also the same under AB 1482. Landlords must have a valid “just cause” reason to terminate tenancy, such as failure to pay rent or violation of the lease terms. Month-to-month tenants cannot have their leases terminated without cause just to get around the rent caps.
In summary, California’s statewide rent control law protects tenants with all types of rental agreements, including fixed-term leases as well as month-to-month leases. The rent increase limit and just cause eviction rules apply across the board.
Local Rent Control Ordinances
In addition to the statewide rent cap under AB 1482, some cities in California have enacted their own local rent control ordinances that may provide tenants with additional protections. These local laws can vary quite a bit from city to city.
Generally speaking, if a city has a stricter rent control ordinance than the state law, the local ordinance will take precedence. However, state law does preempt cities from enacting rent control on certain properties, like single family homes and condos.
Some examples of cities with local rent control laws include:
- Los Angeles Rent increases are limited to 3% to 8% depending on inflation. Just cause eviction rules also apply.
- San Francisco Allowable rent increases range from 1.6% to 6% per year. Rent control applies to most rental units built before 1979.
- San Jose Rent increases capped at 5% annually. Just cause eviction and rent increase notice requirements.
- Oakland -Annual rent increases cannot exceed the Consumer Price Index. Just cause for eviction also required.
- Santa Monica Rent Control Board oversees allowable rent increases and mediates tenant-landlord disputes. Strict eviction controls.
- Palm Springs Rent increases limited to 5% per year and just cause eviction rules.
So in cities with local rent control, tenants may have added protections beyond what AB 1482 provides statewide. It's important for both tenants and landlords to understand how state and local laws interact in their jurisdiction.
Exemptions to Rent Control
California's rent control laws do not apply universally to all rental units in the state. There are several exemptions under the Costa-Hawkins Rental Housing Act of 1995 and AB 1482:
- Single Family Homes Single family residences are exempt from rent control, even if the owner does not occupy the property. This applies to detached single family homes, townhomes, and condos.
- Condominiums Condos are exempt from rent control regardless of when they were constructed. The exemption applies to the entire complex.
- New Construction Residential properties built within the last 15 years are exempt from rent control under AB 1482. This is intended to promote new housing construction in California.
- Duplexes Owner-occupied duplexes with 2 units are exempt from rent control. This exemption does not apply if the owner does not live on site.
The Costa-Hawkins Act also exempted residential units after February 1995. However, AB 1482 modified this exemption by imposing rent caps on newer constructions. As of 2020, only units built within the last 15 years are exempt.
These exemptions mean rent control laws like AB 1482 only apply to certain types of rental units in California. Tenants in exempt properties do not have protections against large rent increases.
Impacts on Landlords
California's rent control laws significantly impact landlords in a number of ways:
Rent Increase Restrictions
The statewide rent cap under AB 1482 limits rent increases to 5% plus inflation, not to exceed 10% total per year. This restricts a landlord's ability to raise rents to market rates for incoming tenants. Landlords can only raise the rent by the prescribed maximum each year.
Just Cause Eviction Requirements
AB 1482 prohibits landlords from evicting tenants without "just cause." Landlords must have a valid reason like failure to pay rent or violation of the lease terms. They can no longer choose to end a tenancy simply because the lease ended. This provides tenants with greater housing stability.
Maintenance and Repair Obligations
Landlords in rent controlled units are still responsible for maintaining the property in a habitable condition and making necessary repairs. The rent caps mean they may earn lower profits, which could impact their ability or willingness to make upgrades and improvements.
Overall, rent control laws in California limit a landlord's power over their rental properties. While aimed at protecting tenants, these restrictions do place additional burdens on landlords operating rental housing.
Impacts on Tenants
California's rent control laws under AB 1482 aim to provide several key protections for tenants residing in covered properties:
Caps on Rent Increases
The primary impact on tenants is placing a limit on how much landlords can increase the rent each year. For tenants in covered units, landlords can only raise rents by 5% plus the rate of inflation, up to a maximum of 10% annually. This provides stability by preventing sudden large spikes in rent that could displace tenants.
Improved Housing Stability and Affordability
By capping rent increases, AB 1482 helps improve housing stability and affordability for tenants. Tenants have more financial predictability and are less likely to be priced out of their homes due to exorbitant rent hikes. This is especially helpful for lower-income tenants struggling to afford housing costs.
Eviction Protections
AB 1482 prohibits landlords from evicting tenants without just cause, such as failure to pay rent or violation of the lease terms. Tenants can no longer be evicted for no reason at all, which was previously allowed under month-to-month leases. These eviction protections aim to prevent arbitrary or retaliatory evictions and allow tenants to maintain stable housing.
Overall, these protections offer tenants more housing security and help prevent displacement and homelessness. AB 1482 marks a significant step in balancing the power dynamics between landlords and tenants in California's rental housing market.
Arguments For and Against Rent Control
Rent control laws like AB 1482 have been the source of much debate, with reasonable arguments on both sides. Supporters of rent control highlight benefits such as preventing displacement of vulnerable residents and promoting affordability in competitive rental markets. However, critics argue rent control can also have unintended consequences like disincentivizing new construction and disproportionately benefiting higher-income tenants.
Arguments For Rent Control
- Prevents displacement of vulnerable residents: By limiting how much rents can be raised each year, rent control aims to protect tenants from being priced out of their homes. This helps maintain socioeconomic diversity in neighborhoods and prevents vulnerable groups like the elderly and disabled from being displaced.
- Promotes affordability: In cities with competitive rental markets, landlords may drastically increase rents from year to year, making housing unaffordable for many tenants. Rent control laws ensure rents remain within reach for more residents.
Arguments Against Rent Control
- Disincentivizes new construction: Critics argue rent control reduces incentives for developers to build new rental housing. By capping rental income potential, rent control makes new construction less appealing as an investment. This could exacerbate housing shortages over time.
- Benefits higher-income tenants: Rent control units often end up occupied by tenants who can pay more in rent, while lower-income tenants struggle to find affordable units elsewhere. Rent control may fail to help those most in need.
Enforcement and Filing Complaints
California's statewide rent control law AB 1482 is enforced at the local level by cities and counties. If you believe your landlord is violating the rent cap or just cause eviction provisions, here is how to file a complaint:
- Contact your local city or county housing department. Many municipalities have their own rental housing dispute programs to assist tenants. Explain the situation and they can advise if your landlord is breaking the law.
- Reach out to local tenant advocacy groups. Organizations like the LA Tenants Union can provide guidance on your rights and help document violations.
- Submit a formal complaint to the city or county. Your local housing department will have a process to file a formal complaint against the landlord. Provide documentation like notices and lease agreements as evidence.
- Consult local legal aid organizations. If you need legal representation, groups like the Eviction Defense Network may be able to provide pro-bono legal assistance.
The state law gives local governments authority to enforce AB 1482 and impose penalties on landlords who violate the provisions. Tenants have the right to sue landlords for actual damages as well as punitive damages of up to $5,000 for each violation. With the proper evidence and support, tenants can compel their landlord to comply with the law.
Key Takeaways
- The Tenant Protection Act of 2019 (AB 1482) introduced statewide rent caps and just cause eviction protections, limiting annual rent increases to 5% plus the rate of inflation, but not exceeding 10% total within a 12-month period.
- The law applies to residential properties over 15 years old, including apartments, condos, and multi-unit houses up to 4 units, but does not apply to single-family homes, condos, and residential properties built within the last 15 years unless they're exempt from local rent control laws.
- AB 1482 protects tenants from being evicted without a valid "just cause," categorizing evictions as either "at-fault" (e.g., failure to pay rent, breach of lease) or "no-fault" (e.g., landlord wants to move into the unit, taking the property off the rental market).
- The rent caps and eviction protections apply to all residential rental agreements, including both fixed-term leases and month-to-month rental agreements, ensuring landlords cannot circumvent the law by changing the type of lease agreement.
- Some California cities have their own local rent control ordinances that may provide additional protections to tenants, with the stricter local ordinance taking precedence over state law.
- Certain properties are exempt from rent control under AB 1482, including single-family homes, condos, and new construction built within the last 15 years, with some exceptions based on local ordinances.
- The laws aim to balance the needs for housing stability and affordability for tenants with the interests of landlords, though they place specific restrictions on rent increases and eviction practices, impacting how landlords can manage their properties and providing tenants with greater housing security.
Frequently Asked Questions
What is the new rent control law in California?
The new rent control law in California, known as the Tenant Protection Act of 2019 or AB 1482, sets statewide rent caps and provides just cause eviction protections for tenants. It limits annual rent increases to 5% plus the local rate of inflation, with a maximum increase of 10% total within a 12-month period. The law applies to most residential properties over 15 years old.
What are the exemptions for rent control in California?
The exemptions under AB 1482 include single-family homes, condos, and newly constructed properties built within the last 15 years. These properties are exempt from the statewide rent cap unless they are owned by corporations, real estate investment trusts (REITs), or LLCs where at least one member is a corporation. Additionally, duplexes where the owner occupies one of the units are also exempt.
What is the new renters law in California 2024?
As of my last update in April 2023, specific details about new renters laws set to take effect in California in 2024 were not available. Typically, updates to renters laws could involve adjustments to existing rent control measures, further protections against eviction, or changes to tenant rights. It's advisable to check with the California Department of Consumer Affairs or a legal professional for the most current information.
What is AB 1482 law in California?
AB 1482, the Tenant Protection Act of 2019, is a law that introduced statewide rent control and eviction protections in California. It aims to enhance housing stability and affordability by limiting how much landlords can increase rent each year and establishing clear criteria for just cause evictions. This law marked a significant shift in California's approach to managing the rental housing market.
How much can a landlord raise rent in California 2024?
Under the current provisions of AB 1482, landlords in California can raise rent by up to 5% plus the local rate of inflation, not to exceed a total of 10% in a single 12-month period. These limits are set to continue into 2024 unless new legislation is passed that alters these caps. It's essential for both landlords and tenants to stay informed about any changes to rent control regulations that may occur.
