Rent increases in California require more than deciding on a new number. The state’s notice requirements, timing rules, and — for many properties — AB 1482 rent caps mean that an improperly executed increase can be unenforceable or create liability. If you’re a San Diego landlord planning your first rent increase, here’s what to understand before you send any notice.
Notice Requirements: How Much Time Do You Need to Give?
California law requires different notice periods depending on the size of the increase:
- Increases of 10% or less: a minimum of 30 days written notice.
- Increases of more than 10%: a minimum of 90 days written notice.
The 30 vs. 90-day threshold applies to the cumulative increase over the previous 12 months, not just the current notice. If you raised rent 5% six months ago and are now raising it another 7%, the cumulative increase is 12% — and the 90-day notice period applies.
Notice must be in writing and properly served. In California, you can deliver it personally, by mail (adding additional days for service by mail under Code of Civil Procedure 1013), or by posting and mailing if personal delivery isn’t possible. Keep proof of service.
When Can You Raise the Rent?
For month-to-month tenancies, you can raise the rent with proper notice at any time, subject to the notice requirements above. For fixed-term leases, you generally cannot increase rent during the lease term unless the lease expressly permits it. If you have rent escalation clauses, make sure they are in line with any state or local rent cap laws. Plan increases to align with lease renewals.
AB 1482 Caps: Does Your Property Have a Ceiling?
For properties subject to California’s AB 1482 (the Tenant Protection Act), the allowable increase is capped at 5% plus local CPI, with a maximum of 10% in any 12-month period. In San Diego, the local CPI component typically brings the effective ceiling to 8–9%, though the exact figure varies by year and requires checking current Bureau of Labor Statistics data for the San Diego-Carlsbad metropolitan area.
You can apply the full allowable increase in a single notice, or split it across two notices in a 12-month period — but the total cannot exceed the cap. Document your calculations.
If your property is exempt from AB 1482 (see our post on AB 1482 for the full exemption list), no statewide cap applies — though you still must follow the notice timing requirements.
What a Proper Rent Increase Notice Includes
A rent increase notice should be straightforward and include: the date of the notice, the resident’s name and address, the current rent amount, the new rent amount, the effective date of the increase, and your name and contact information as the landlord or property manager. Some landlords include the calculation supporting the increase for AB 1482-covered properties — this adds transparency and reduces disputes.
Local Ordinances: San Diego City and County
The City of San Diego does not currently have a local rent stabilization ordinance separate from AB 1482. If your property is in a different incorporated city within San Diego County, verify whether local ordinances impose additional notice requirements or caps. National City has historically had local rent protections worth reviewing if you own property there.
A well-executed rent increase is one of the most straightforward tools for protecting your investment’s value over time. The process is manageable — it just requires the right notice, the right timing, and an accurate calculation of what the law permits. |
The Bottom Line
Raise rent with the right notice period, verify whether AB 1482 caps apply to your property, and document your process. A rent increase that’s improperly noticed or exceeds the allowable cap isn’t just unenforceable — it can create liability with the resident. Get the fundamentals right and it becomes routine.
The right decision usually starts with understanding the full picture. If you’re unsure whether your property is subject to AB 1482 or how to calculate the permissible increase, we’d be glad to walk through it with you. |