Rent Hikes, Rent Control: Californians Will Take A Stand

CALIFORNIA — California residential rent prices keep rising, but many people don't know there are limits on those increases in the Golden State.

On Friday, California Attorney General Rob Bonta issued two consumer alerts regarding current legal limits on rent hikes. The alerts come amid a November ballot measure — Prop. 33 — that could expand rent control.

The alerts and upcoming Election factor heavily on Californians struggling to make ends meet. About 55% of the state's renters pay more than 30% of their income on rent and utilities. About 25% of this group spends half their paycheck on rent and utilities.

Here's a look at the rental laws and what could be in store across California.

What are current laws regarding rent increases?

There are two significant pieces of existing legislation in California that impact rental prices, though local cities and counties have wiggle room.

Statewide, there is the Costa-Hawkins Rental Housing Act that was passed by the California Legislature in 1995. The Act has limited the ability of local governments to implement rent control.

Some would say the law has benefitted landlords. For example, the Act prevents local governments from limiting rent increases for properties first occupied after Feb. 1, 1995, and for tenants living in single-family homes or condominiums. Also, landlords are not restricted in what they charge new tenants.

Then in 2019, the California Legislature rolled out the Tenant Protection Act (AB 1482), which created significant new protections for tenants, including limits on rent increases. Under the TBA, landlords cannot raise rent more than 10% total or 5% plus the percentage change in the cost of living — whichever is lower — over a 12-month period.

Since 2019, the TBA and Costa-Hawkins Rental Housing Act have existed side by side. As a result, some local rent control laws further restrict how much a landlord can increase rent annually.

Unincorporated areas of Los Angeles County and more than 35 California cities have some form of rent control in place. Most of the cities are in Los Angeles County and Northern California counties.

In Berkeley, for example, landlords cannot raise rent during the first two years of a tenancy, and the maximum increase is capped at 1.9%. In the city of Los Angeles, the maximum rent increase is 4% annually. In Orange and Riverside Counties, only two cities have rent control ordinances in place — Santa Ana and Palm Springs. See all the local laws here.

What did the Attorney General's alerts say?

The first consumer alert reiterates the Tenant Protection Act and its maximum annual rent increase. The second alert summarizes local rent control laws throughout the California cities and counties named above.

"At a time when rent prices continue to be a top concern for Californians, my office is publishing two consumer alerts to remind both landlords and tenants of the allowable rent-increase caps under the Tenant Protection Act and local law," Attorney General Bonta said. "The bottom line is this: The Tenant Protection Act sets a floor — not a ceiling. If your city or county has stronger rent-increase protections than those provided by the Tenant Protection Act, that city or county's protections take precedence."

What is Prop. 33?

If passed by Californians next month, Prop. 33 will repeal the Costa-Hawkins Rental Housing Act of 1995, which in turn would expand local governments' ability to enact rent control.

Under the proposition, cities and counties could control rents for any type of housing and could limit how much a landlord increases rent when a new tenant moves in. Perhaps most significantly, Prop. 33 would also prevent the state from taking future actions to limit local rent control.

There have been unsuccessful attempts to repeal the Costa-Hawkins Rental Housing Act. It's unclear whether 2024 will be any different. Prop. 33 supporters say that rent control is an American tradition that works well in many cities. Detractors argue the measure, if passed, would hurt mom-and-pop landlords who rely on rental income for survival.

The Attorney General did not take a stance on Prop. 33 when he issued Friday's consumer alerts.

The takeaway

Californians who believe their landlord has violated their tenant rights should seek legal help immediately, Bonta said. Free or low-cost legal aid may be available. To find a legal aid office, visit lawhelpca.org and click on the "Find Legal Help" tab. For those who don't qualify for legal aid and need help finding a lawyer, visit the California State Bar webpage to find a local certified lawyer referral service.