How to Raise Rent Legally and Fairly Under California Law

Rent increases can be a stressful topic for both owners and tenants—especially in competitive California markets. The state’s Tenant Protection Act (AB 1482) sets limits on how much landlords can increase rent, but within those rules, there’s still room to raise rents strategically and fairly.

Here’s a 2025 guide to California rent increase laws, including notice requirements, exemptions, and best practices to keep tenants while maintaining profitability.

How Much Can a Landlord Raise Rent in California 2025?

Under AB 1482, the statewide rent cap applies to most multi-unit residential properties:

• Maximum increase: 5% + Consumer Price Index (CPI), capped at 10% per 12-month period.
• Frequency: A maximum of two increases per 12 months (combined not exceeding 10%).
• Notice requirements:
  • More than 10% increase → 90-day written notice
  • Up to 10% increase → 30-day written notice (add 5 mailing days if mailed)
  • Delivery by email or hand-delivery is generally acceptable

In rent-controlled cities like Los Angeles, Santa Monica, and West Hollywood, local rent stabilization ordinances often cap increases lower (around 3–5%).

Know the Exemptions to AB 1482

Not every property is covered under California’s rent cap. Here are the main exemptions to AB 1482 that landlords should know:

• Single-family homes and condos: Exempt if they are owned by an individual (not a corporation or REIT) and tenants received a written lease disclosure stating the exemption.
• New construction: Residential units built within the last 15 years are exempt. This “rolling exemption” means a 2012 building remains exempt until 2027.
• Owner-occupied duplexes: If the landlord lives in one of the units as their primary residence, the duplex is exempt.
• Affordable housing: Units already under government-imposed rent control programs or deed restrictions are exempt.

If your property qualifies, you may legally bypass the AB 1482 rent cap. However, you must still provide a rent increase notice that complies with California law.

Pricing Rent Based on Market Conditions

Fair rent increases balance profitability and retention. To determine a competitive price:

• Research nearby comparable rentals (size, amenities, condition).
• Use tools like Zillow, Apartments.com, or Rentometer.
• Factor in operating costs such as property taxes, insurance, and maintenance.

 Overpricing risks extended vacancies. Underpricing leaves money on the table.

Use Gradual, Tenant-Friendly Increases

Sudden hikes drive tenants away. Instead:

• Tie increases to lease renewals whenever possible.
• Provide 60 days’ notice, even when 30 days would suffice.
• Share a rent increase notice California template with clear justification and effective dates.

Most tenants accept modest, predictable increases when they’re communicated openly.

Communicate Clearly with Tenants

Framing increases as part of long-term property care helps build trust:

• Be transparent: reference rising costs or recent upgrades.
• Show improvements: highlight new landscaping, appliances, or safety measures.
• Offer flexibility: payment plans or longer-term leases with capped increases.

Good communication reduces turnover and improves tenant satisfaction.

Can You Raise Rent After 12 Months in California?

Yes. Landlords can raise rent once a 12-month lease term is complete, provided the increase complies with AB 1482 and local ordinances. For month-to-month leases, increases may be applied after 12 months of tenancy, following proper notice periods.

California Rent Increase Laws for Single-Family Homes

• Many single-family homes and condos are exempt from AB 1482.
• Exemption applies if the property is not owned by a corporate entity and tenants received written disclosure.
• If disclosure is missing, the rent cap may still apply—even to a single-family home.

Always verify exemption status and keep documentation to avoid disputes.

When DIY Might Fail: Professional Rent Increase Management

Managing multiple California units requires precision. Mistakes in notices, exemptions, or calculations can invalidate an increase—or even invite legal action.

Working with Beach Front Property Management means:

• Rent increases aligned with AB 1482 and local laws
• Legally compliant tenant notices
• Market benchmarking for maximum ROI
• Full renewal management and communication support

Final Thoughts

Raising rent legally in California requires more than hitting the cap—it’s about understanding AB 1482 limits, exemptions, and notice rules, while maintaining positive tenant relationships. With careful planning, compliance, and transparent communication, landlords can protect both their income and occupancy.

If you’d rather leave compliance and tenant communications to experts, BFPM Inc. handles rent increases, renewal notices, and market benchmarking across Southern California.