CALIFORNIA – As California continues to grapple with housing affordability, 2025 brings several updates to rent control laws aimed at protecting tenants and providing clearer guidelines for landlords. Here’s what tenants need to know about the latest developments in the state of California.
What Is AB 1482?
The Tenant Protection Act of 2019, commonly known as AB 1482, established statewide rent control in California. This law limits how much landlords can increase rent and provides eviction protections for tenants in certain residential properties.
Key Features of AB 1482:
- Rent Increase Limits: Landlords can increase rent by the lower of:
- 5% of the current rent plus the local inflation rate (Consumer Price Index), or
- 10% of the current rent.
- Eviction Protections: Landlords must provide a valid reason for evicting tenants who have occupied a residence for more than one year.
- Applicability: The law applies to most residential rental units in California, except for certain exemptions.
Rent Increase Caps for 2025
For the period from August 1, 2025, through July 31, 2026, the allowable rent increase is 8.8%. This is determined by the local inflation rate, which varies by region. For example, if the local inflation rate is 3%, the maximum allowable rent increase would be 8% (5% + 3%).
Important Notes:
- Frequency: Rent can only be increased twice within a 12-month period.
- Exemptions: Certain properties, such as single-family homes or condos owned by individuals (not corporations or LLCs), may be exempt from these caps.
Reporting Rental Payment History
Starting in 2025, landlords are required to offer tenants the option to report positive rental payment history to at least one nationwide credit reporting agency. This initiative aims to help tenants build their credit scores.
Implementation Timeline:
- Existing Leases: Landlords must offer this option by April 1, 2025.
- New Leases: This must be offered at the time the lease is signed and once annually thereafter.
Prohibition of Unpredictable Housing Fees
Assembly Bill 1248, introduced in 2025, seeks to protect renters from unpredictable housing fees by requiring landlords to include all rental costs upfront and prohibiting added charges during a tenancy. This measure aims to provide tenants with clearer financial expectations and reduce unexpected expenses.
Tenant Rights and Protections
In addition to rent control measures, tenants in California have several rights and protections:
- Just Cause Eviction: Landlords must provide a valid reason for evicting tenants who have occupied a residence for more than one year.
- Advance Notice for Rent Increases: For rent increases of 10% or less within a 12-month period, landlords must provide at least 30 days’ advance written notice.
- Protection Against Price Gouging: During emergencies, such as natural disasters, landlords are prohibited from increasing rent above a 10% cap. Violations can lead to severe penalties.
Exemptions from Rent Control
Not all properties are subject to AB 1482 rent control:
- New Construction: Properties built within the last 15 years are exempt.
- Single-Family Homes and Condos: These may be exempt if owned by an individual (not a corporation or LLC) and proper notice is given to tenants.
- Affordable Housing: Units governed by regulatory agreements or tax credits may be exempt.
Conclusion
California’s 2025 updates to rent control laws aim to provide greater stability and fairness for renters while offering landlords clearer guidelines. Understanding these changes is crucial for both tenants and property owners to ensure compliance and protect their rights.
If you’re a tenant or landlord in California, it’s essential to stay informed about these laws and seek legal advice if you have questions about how they apply to your specific situation.
We’d love to hear your thoughts! Have you experienced any challenges or benefits from these new rent control measures? Share your experiences or questions in the comments below.
