What is the maximum rent increase allowed under California law?

What the Law Says

California’s statewide rent stabilization law — the Tenant Protection Act of 2019 — sets uniform limits on rent increases for most residential rental units. It applies to units built more than 15 years ago and excludes certain housing types like single-family homes (unless owned by corporations or REITs) and newly constructed units.

The law prohibits landlords from increasing rent by more than 5% plus the local Consumer Price Index (CPI) — but never more than 10% — in any 12-month period. This cap applies to most covered units statewide.

For rent increases of 10% or more within a 12-month period, landlords must give tenants at least 90 days’ written notice. For increases under 10%, only 30 days’ notice is required.

The law took effect January 1, 2020, and is scheduled to sunset on January 1, 2030 — unless extended by the legislature.

Statutory Text

Notwithstanding any other law, an owner of residential real property may not increase the gross rental rate for a tenant more than once within any 12-month period, and the total increase shall not exceed the lesser of either (A) five percent (5%) plus the change in the regional consumer price index for the preceding year, or (B) ten percent (10%).

— Civil Code § 1946.2(b)(1) — Tenant Protection Act of 2019

Statutory Text

If the cumulative rent increase is equal to or greater than ten percent (10%), the notice shall be given at least ninety (90) days before the effective date of the increase.

— Civil Code § 1946.2(c)(1)

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