The maximum amount a landlord can raise rent varies significantly depending on the location and local rent control laws. However, in California, there are specific state-wide limits established by law.
California's Rent Increase Limits
In California, a state law passed in 2019, known as the Tenant Protection Act, puts a firm ceiling of 10% on how much landlords can raise rents each year for many apartment buildings.
This law allows for an annual rent increase calculated as 5% plus the change in the local Consumer Price Index (CPI). Regardless of the CPI, the total allowable increase cannot exceed 10% in any given year.
Key Aspects of California's Rent Increase Cap:
- Calculation: The permitted increase is 5% plus the percentage change in the local Consumer Price Index.
- Absolute Maximum: The total increase is capped at a maximum of 10% annually. This means if 5% plus CPI were to exceed 10%, the landlord is still limited to a 10% increase. Conversely, if 5% plus CPI results in a lower percentage (e.g., 8%), that lower percentage is the maximum allowed.
- Coverage: This law covers many, but not all, apartment buildings in California. Certain properties, like single-family homes or newer constructions, may be exempt.
- Application: These limits apply to most residential rental properties in California, protecting tenants from excessive annual rent hikes.
It's crucial for tenants and landlords to understand these regulations, as violating them can lead to legal consequences. For detailed information on tenant rights and responsibilities in California, you can consult official state resources.
