Landlord's Guide to Rent Increase and Evictions: Step 3. Rent Increases

If a tenant is not paying rent or refuses to pay after a lawful rent increase, see Just Cause Evictions tab. 

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Rent Increases

California Civil Code (cc) §1947.12 limits annual rent increases as well as total rents charged by a landlord or master tenant (someone who rents all or part of the leased premises to a subtenant). 

Generally, Civil Code §1947.12 limits annual rent increases to 5% plus the local rate of inflation (CPI-U) OR 10% of the gross rental rate charged at any time during the 12 months prior to the effective date of the increase, whichever is lower. The rate of inflation is tied to the Consumer Price Index for All Urban Consumers for All Items.

The Bureau of Labor Statistics publishes the Consumer Price Index for each metropolitan area, if the metropolitan area where the property is located is not listed then you will use the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations. See Civil Code section 1947.12(g)(3)(B) for the CPI-U month that applies for the calculation.

If the landlord is not exempt, rent increases of 10% or less require a minimum 30-day notice to the tenant. (see Exemptions tab)

If one of the exemptions applies to you (see Exemptions tab) then the CA Tenant Protection Act 2019 rent cap of 10% or less does not apply. If a proposed rent increase is greater than 10% of the tenant’s rent at any time during the prior 12 months of the increase effective date, the landlord must provide 90-day notice. 

The Tenant Protection Act rent control only applies to rent increases for an existing tenant(s). Landlords can raise the rent by any amount when entering into a new lease agreement where no previous tenants remain. Civil Code §1947.12.

If the residential property is covered under the Tenant Protection Act (see Exemptions tab) the gross rental rate shall not be increased in more than two increments over a 12-month period, subject to the 10% cap increase. Civil Code §1947.12.

The Tenant Protection Act does not regulate the amount of rent the landlord may charge for new tenancies (meaning all the tenants have to be new). The landlord can establish the initial rental rate with no maximum, and only the future increase amounts are limited under the Tenant Protection Act.

In California landlords can raise rent for any reason when proper notice is given unless the increase it discriminatory or retaliatory.

A landlord needs to give a 30-day notice when increasing the rent for properties that are not exempt under the Tenant Protection Act (see Exemptions tab). 

Following notice should included: 

• the tenant’s name
• The full address of the property, including street, city, and county
• The change of terms, spelled out as carefully as if you were inserting it as an additional clause in a rental agreement for the first time
• The date when the change of terms is effective, giving at least 30 days notice in the case of a tenancy from month to month 
• The date you’re giving the notice, and the signature of the owner or manager.

If a residential property is exempt under Civil Code 1947.12 and there is not a local rent control law, a landlord can increase rent more than 10% but must provide 90 days notice. See Civil Code § 872.

The notice should included: 

• the tenant’s name
• The full address of the property, including street, city, and county
• The change of terms, spelled out as carefully as if you were inserting it as an additional clause in a rental agreement for the first time
• The date when the change of terms is effective, giving at least 90 days notice in the case of a month-to-month tenancy 
• The date you’re giving the notice, and the signature of the owner or manager.