Rent Increase Limit in San Diego County
UPDATE: CPI numbers released on April 12, 2023 – see below for details.
Also, Fox 5 News interviewed me about the rent cap law – check out the interview here.
The rent increase limit, or rent cap, became effective on January 1, 2020. And, even though this happened over TWO YEARS ago, I have trouble finding accurate information, or even a decent guide explaining what IS the rent cap maximum for San Diego County. So, here we are. If you have experienced the same frustration, I hope this article helps.
If you are a landlord, renter, or potential investor, I wrote this article for you. And, while this article applies to San Diego County, you will see how most of it also applies to all of California.
This article covers:
- Does rent control exist in San Diego County?
- What is the rent increase limit/rent cap law?
- How is the rent cap calculated?
- What is the current rent increase limit for San Diego County?
- When does the law enforcing rent caps end?
- What properties are exempt from the rent cap law?
Does Rent Control exist in San Diego County?
My short answer is NO. In most cases, landlords can offer a property for rent at any amount they wish. (There are some exceptions, such as low income housing and student housing.) The high initial asking rents are based on the limited supply and increasing demand for housing. So, what are rent caps?
Rent caps limit how much your landlord can INCREASE your rent. For example, a landlord can offer to rent residential property to you for $4000 per month. But, once you have agreed to pay $4000 per month, your landlord can’t suddenly increase the rent to $4500.
What is the rent increase limit/rent cap law?
The Tenant Protection Act of 2019 (TPA), or California Assembly Bill 1482, became effective January 1, 2020. This is the statewide rent cap law.
Here’s an excerpt from the bill, the describes the new rent increase limit:
This bill would, until January 1, 2030, prohibit an owner of residential real property from, over the course of any 12-month period, increasing the gross rental rate for a dwelling or unit more than 5% plus the percentage change in the cost of living, as defined, or 10%, whichever is lower, of the lowest gross rental rate charged for the immediately preceding 12 months, subject to specified conditions. The bill would prohibit an owner of a unit of residential real property from increasing the gross rental rate for the unit in more than 2 increments over a 12-month period, after the tenant remains in occupancy of the unit over a 12-month period.
Read the complete text of AB 1482 here.
How is the rent cap calculated?
There has been SO MUCH MISINFORMATION about this on the Internet, it makes me want to type this part out in caps…
The MAXIMUM annual rent cap = 5% PLUS the % CHANGE in the local Consumer Price Index (CPI).
Also, no matter what the change in CPI is, the annual rent increase can never exceed 10%.
Now, most of us are asking, how do we calculate the % change in the CPI?
And, which percentage change do we use? The CPI is updated throughout the year.
If you Google “California CPI,” you will find that there are many different indexes, both by region and by type. Different government entities print different tables, and as far as I can tell, all the numbers vary. So now what?
According to the California Association of REALTORS®, the real estate industry uses the change in CPI-U from March to March each year. They refer to the United Status Bureau of Labor Statistics, and the California Consumer Price Index for All Urban Customers (CPI-U). Here is the page for San Diego County.
On that page, you see the following: 
The last number in the chart above, which is circled in red, 5.3, is the percentage change for March 2023.
What is the current rent increase for San Diego County?
For rent increases effective between August 1, 2022 and July 31, 2023, the maximum rent increase in San Diego County is:
5% base + 7.9% CPI change (from March 2022) = exceeds max 10% rent increase
For rent increases effective between August 1, 2023 and July 31, 2024, the maximum rent increase in San Diego County is:
5% base + 5.3% CPI change (March 2023, see above) = exceeds max 10% rent increase
Because the maximum is 10%, this is the maximum rent increase for this 12-month period. While AB 1482 allows a landlord to increase rents twice per year, the total increase cannot exceed 10% for that period.
Also, remember that any rent increases 10% or less require a minimum 30-day notice to the tenant. Since the maximum rent increase can no longer exceed 10%, this means that any rent increase should require no more than 30 days’ notice. Of course, this does not apply if your landlord is exempt from this law.
When does the rent cap law end?
This law will sunset on January 1, 2030.
What properties are exempt from the rent cap law?
Here are some examples of properties that are exempt from the rent cap law:
- A single family residence or condominium with NO corporate ownership. This applies ONLY IF the landlord is NOT a real estate investment trust, a corporation, or a limited liability corporation. The tenant must receive a notice of exemption with the rental agreement.
- Housing that is less than 15 years old.
- A duplex, where the landlord lives in one unit and rents out the other.
- Low income housing.
- School-owned housing.
- Housing already subject to more stringent rent control.
If you are a landlord who is exempt from the law, be sure to provide your tenants with the California AB 1482 Notice of Exemption. You can find sample forms online.
I’m tired of paying rent. Can I buy instead?
If you’re tired of paying off your landlord’s mortgage, consider homeownership. Of course I would love to help you! If you don’t want to contact me yet, here are a few articles to check out:
Buying a Home Q&A
Buyer Closing Costs – Buying a Home in California
Mortgage Affordability Calculation – How Much Home Can I Afford?
I’m tired of renting my property. Can I sell?
If you’re tired of being a landlord, consider selling. You can either cash out on your investment, or effect a 1031 Exchange. Of course I would love to help you! If you don’t want to contact me yet, here are a few articles to check out:
What are Home Seller Closing Costs in California?
1031 Exchange – How Real Estate Investors Defer Capital Gains Tax
What to Expect When Selling Your Home – Seller Escrow Timeline
Selling Your Home Q&A
Of course, you are always welcome to Contact Me with any questions.
The first point in the exempt list is confusing. Do you mean condominiums under ownership of regular citizens are exempt from this rent cap law?
Hello Sandeep, yes, the rent cap law applies to corporate landlords.
Hi mylene
I am a private landlord not corporate landlord. I have a duplex, both units are renting out. Can I exempt the rent cap law?
If not corporate then you are likely exempt.
My landlord just sent us notice that our when our 12 month lease is up 6/9/2022 our rent will be increased to $1881 but we currently pay $1725 I feel like this is not the right amount
Hello, it depends if they are exempt from rent cap law
That’s a 9% increase of $1725. If inflation is more than 4% that year then it seems to be just under 10%.
It’s the change from year to year, so yes, 9.1% was the number last year. This year it’s higher so it’s maxed out at 10%.
Hello Mylene ~ Thank you for this information and I have a few questions.
Please contact me ASAP!!
Happy Happy 4th of July***
Hello,
I am a mom & pop landlord in Lakeside CA. Can I raise rent more than 10% in 12 months?
Hello, no rent cap law for non-corporate owners.
Does gross rent cap include increased charges for utilities?
Hello! Rent cap is just for rent.
Thank you for your article.
I have not increased my rent to my tenants for 6 years. I am $400/mo in the red mostly due to HOA dues and property taxes. I wish to raise the rent by $400 but that would put me over the 10% cap (unless I was able to spread it over the 6 years). From reading your blog and the new law it looks like I am exempt from this law being that I’m not a real estate investment trust, a business or a corporation.
Is that your take?
Are landlords punished by this law who have not raised rent over a period of years and need to now?
Thanks
Hello Willis, best to check with the Housing Commission to ensure you are exempt from the rent cap law… just to be safe.
Moved into a small one bedroom converted garage…December 2020 and in March 2022 my rent went from 1495 to 1630…no improvements were made to the property. 9% – increase its legit, right? Ugh.
9.1% is currently the cap, yes.
The exemption for “Affordable housing” is absurd.. HUD just published new AMI for 2022 which has driven my rent up by 25% because my corporate owned unit under the LIHTC Moderate income program is being charged the max rent limit based on the new AMI even though I have had no increase in income and earn at the lowest end of the scale only 62k for a family of 2. My rent is jumping from $1791 to $2239. I sent the management company suggestions from HUD that they do not need to increase or charge maximum rent as it is not required but if they are increasing a large amount they should keep in mind not overwhelming the tenant and increasing incrementally rather than in one lump sum.. they don’t care about anything other than rushing me to sign the lease I am going to have to work another job to pay and I already work alot and barely have time with my son. This program in particular gives too much control to the corporate ownership allowing them to max out rents and add minimal utility allowance.
My rent is intended to be 30% of 80% AMI but this new rent is over 50% of my take home pay before utilities.
I am so sorry to hear this. That’s a huge jump.
Hi Mylene, my landlords sold our unit to a rental management group in May. We received notice, that on August 1st they are increasing our rent from 2240 to 2460 and additionally they will now be charging for water sewage and trash. Our original lease with the old landlord was a year long and expires in December. Is this legal in San Diego?
Best to check with the San Diego Housing Commission to make sure it’s legal.
Question: What is a CORPORATE LANDLORD? I’m simply the owner of my rental. I lived in that house for about 14-15 years and then decided to rent that house and buy another one. I see my self as simply a Landlord, but not sure if I fall under the CORPORATE LANDLORD title. (???) Want to know if I’m EXEMPT from the RENT CAP LAW (??) Thanks….
Hello John,
Do you run your rentals as a corporation, or as an individual? (Best question for your CPA)
can a landlord add trash water sewer charges etc to increase the rent?
Best to check the law – but other charges/services usually don’t count as rent.
Hi Mylene,
I live in a large high rise downtown that’s managed by Brookfield. The construction started in 2006 and finished in 08. Does this still qualify for rent control?
That’s a great question! If it’s 2008 construction, check with them; likely they are exempt for 15 years from that year.
Hi Mylene! Appreciate the article. I’m an individual renting out my single family residence and was wondering is a “note of exemption” a formal form or just an “Exemption Note” within the lease agreement stating that based on the qualifications of AB 1482, I am exempt? Appreciate any feedback. Thank you!
Hello, we spoke on the phone, I hope you were able to find the form you need. Thanks!
Hi Mylene,
I have rented a single- family home for the past year owned by an LLC. What is the maximum percentage increase that our landlord can increase our rent by?
Also, we let our landlord know that we’d like to renew our rent on March 1st for another year. However he then proceeded to list our house on rental sites, saying it will be available for rent April 1st. Is this legal?
Thank you for your advice.
We spoke on the phone last month, just wanted to thank you for finding my website and hope it got settled betweeen you and your landlord – good luck!
Does this apply to a stand alone garage rental?
Best to check w/ the San Diego Housing Commission to be sure that you’re exempt.
Sorry forgot to say my rent was 1850.00
Bree
Hello Bree, sent you an e-mail.
Thank you for your article it’s nice to finally find a good source on this topic. When does the student housing exemption apply? Could you point me to good resources on that?
Great recap of the law Mylene! I’ve shared this with my clients! I appreciate you taking the time to lay it out so clearly!
Thank you Peyton! Hope to work with you again soon!
How much can a non-corporate renter of a single-family home with a note of exemption raise their rent in 2022?
As much as they want.
Appreciate the article, its concise and has great information!
One question I still have is how does the maximum increase apply when on a month-to-month basis following a one year lease? I was just sent a new lease renewal letter with the maximum increase added less than a year after going month-to-month. My assumption would be a corporate landlord could not raise it until a year after the mont-to-month began.
Max increase is for the 12 month period.
Thank you for the great information!
If I need to increase the rent on July 1, 2022, would I use the 7.9 cpi-u to figure my cap on increase?
Rent is currently $1350.
And is the 30-day notice a specific form that I have to use- or is email good enough?
Best to check with a property manager for format for rent increases.
9.1% max until August 1, 2022.
IF you have a tenant with a month-to-month rental (the lease expired 10 years ago, same tenant) does the rent cap apply? No new lease was executed and the original lease converted to a month-to-month as per standard RE leases.
Hello, it depends if landlord is exempt from rent cap laws.
If I plan on raising my rent for my tenents starting June 15, 2022, is the cap 9.1% or 10%? Also if I am exempt under the rent cap law, do I need to notify my tenants with a minimum of 60 days if I want to increase the rent more than 10%, or can I still notify them with a minimum of 30 days of rent increase? Thank you so much for all your assistance and insightful information.
9.1% before August 1, 2022 effective date.
Hi Myelene,
My current rent for a condo I’m living is 2175 . Yesterday my landlord called me and said that he is planning to increase the rent to 2700 due to his increase in escrow and if he dosen’t increase the rent he will be under water. My lease ends in july , can he really increase the rent by almost 30% ?
Hello, is he exempt from the rent cap law?
Hi, so is there a 30 day notice exemption as well for landlord that’s non-corporate? I received a letter for rent increase a week before increase
Generally it’s 30 day notice under 10% and 60 day notice over 10% increase.
We live in San Diego. Our landlord lives in front house and rents the back house to us. It’s older then 15 years old. What’s the yearly cap on raising the rent?
No rent cap law for this type of arrangement.
My roommates and I have been living at a rental for about 12 months and just got served out notice to vacate or extend rent. We were paying 3140 a month, but now they are planning to raise our rent to 3926. Is this increase legal? its an almost 25% increase. The property is less than 15 yrs old, so not sure if that factors in.
Less than 15 years old is exempt from rent cap law.
Thanks for the article but it still doesn’t answer my question which I’m having a hard time finding. I already know my property is exempt under AB 1482 as it’s an owner occupied duplex but what I can’t seem to find is given I’m not subject to the rent increase caps can I then raise my rent every six months by 10%? I ask this because after I raised the rent by 9% (didn’t raise it for two years during the pandemic) I discovered their duplex has so many issues that I can’t afford to fix them all within a reasonable amount of time so I decided to remove the property from the rental market and move in myself so I can fix all the problems on my own time and budget but they refuse to leave so I’m wondering if I can increase the rent again in 6 months by 10% to encourage them to move but I can’t find that answer anywhere as I don’t know the limits of the NO RENT CAP laws.
Hello Leslie, You aren’t subject to rent cap laws so you can raise the rent as you wish, with proper notice.
Thank you for your very informative blog.
My current tenants are paying $3,500/ month and their lease is up for renewal August 17, 2022.
Am I within the law to raise their rent from $3,500 to $3,790 (an increase of 8%) which is below the current rate of inflation of 8.3%?
Best to double-check but yes, that’s generally allowed.
Hello and thank you for your informative article. I’ve read through all the questions and replies. Our landlord passed and there is now a successor Trustee of a family trust. We have been month to month for almost 12 years following a 12 month lease. Unfortunately, they are unable to locate a copy of a signed rental agreement for our tenancy. Their records do no indicate there is a security deposit being held for our tenancy. I do not have any copy of the lease or record of deposit. We have received a letter from law firm representing the trustee, indicating our $1725 per month does not cover the property tax etc and in order to continue tenancy, the rent is being increased to cover these new costs etc. Effective Sept 1, 2022 rent will be $2,400/mo, in addition $2,400 security deposit due Aug 1, 2022. I feel like we’ve been hit sideways with this notice. That’s a big jump in rent as well as the added unexpected deposit amount. My question to you is this all legit? The rent cap does not apply in this circumstance. Thank you for your time and response. Please let me know who to contact if necessary. I really appreciate it!
I’m so sorry to hear this! It really depends upon what’s written in the lease agreement, unfortunately.
Hello,
Thanks for the article. If the property is managed byy a property management and owned by a landlord without corporate ownership, is the landlord exempt? Is the landlord the property management company, since tenants pay them?Does this law apply to property management companies?
Thanks,
Logan
Hello, yes, it depends upon property ownership – if the property isn’t owned by a corporation, then it is likely exempt.
I am a private landlord not corporate landlord. I have two units of condo (different location in San Diego, California) are renting out. Each condo has two bed rooms. Can I exempt the rent cap law? Thank you.
Hello! It sounds like you are exempt, if you are not incorporated.
My tenants 12 month lease is up Aug 31. They have been underpaying for years. They pay $3300/mo for a SFR – 3 bedroom, ocean view home in coastal North County San Diego. Similar properties rent for $5000/mo. Can I have them sign a new lease and raise the rent 25% as I’m not a corporation, investment trust, or LLC? Or am I stuck with San Diego’s 10% rent cap? The tenants don’t want to move.
Hello! It sounds like you are exempt from the rent cap law.
Hi I am a landlord and own a rental unit in the county of San Diego zip code 92154, I am not a corporation and or company and would like to know what is my rent increase tax rate. I am coming finding that is a maximum of a 9.1%, is that right
Hello! If you aren’t a corporation, you are exempt from the rent cap law/limits on annual rent increases.
What happens if my landlord increases my rent more than 10% but does not give me 90day written notice. We have been living in our house for the past two years and are currently on a one year lease
60 day notice is required for any increases above 10%.
Hello Mylene,
Question ? Is their a limit/rule about raising rents in between tenancies on a single family home
in San Diego ?
Yes! It does depend on the ownership, however.
Hello,
Thank you for this information. Our landlord is a property manager who works on behalf of the owner. We pay our rent checks directly to her name and not the owner of the unit. Property manager tells us that the owner is exempt from this rent increase limit. Does this still apply since we pay rent to the property manager?
Thanks!
Hello! It depends on who owns the property – if you send me the address of the property, I can confirm who is the owner. Thank you for reading!
Hi Mylene, Great info, it’s scary for us renters!
I Just saw a story on News8 about raising rents tonight (Aug 1-22) to 10% as of Aug 1st, 2022. I live in a rental in San Diego with 8 units and have been here for 13 years, month to month now- on section 8. New owner, owner died and gave it to his daughters. New property mg too and they raised rents on everyone on our anniversary dates. I got mine in May this year @9.1%. The building is from the 1970s so i do not believe the owner is exempt from the rent cap. Can they raise my rent again even though i just got a 9.1% raise in May of 22? or do they have to wait until next May of 23 to raise it again up to the limit of 10%?
Thank you,
Albert
Hello Albert, total 9.1% increase for the 12 months following the rent increase. They can’t increase the rent more than twice per year and TOTAL increase for 12 months would be 9.1% until the anniversary of the increase. Thank you for reading!
So low income rentals are exempt from the rent cap. Does this mean that low income rents can be increased at any rate, even higher than 10% annually?
It depends on the lease agreement.
If I understand correctly now that we are in August maximum rent increase is 10% now ,
Please confirm,
Yes, if you are subject to the rent cap law.
I live in a home converted into a triplex that is owned by an LLC. My lease moved to a month to month around a year ago at the digression of the landlord. My land lord initially sent me a rent increase of 10% that has been active since August which I don’t think was allowed at the time but I didn’t want to be difficult. However within a few days they sent back another change of terms that would reduce me to a single parking spot. This feels like another rent increase through the loss of a service that was written into the lease. I have avoided action on signing the parking spot, Is this something that I have to accept?
Hello Jared, I’m not sure – best to check w an attorney. Good luck!
Hello, I am trying to figure out if it is legal for the land land to change the terms of the lease to remove a parking spot on top of raising the rent? Does this not count as attempting to skirt the law by decreasing the value of the property that I am renting while increasing the rent the maximum 10%? Please help.
Hello Jared, I would defer to an attorney for advice, just to be safe.
I am a Coronado landlord and did not raise rent for 3 years renters had 3 year lease they are paying about half market rate . Can i raise the rate to $7000 from $4000 they pay now . Do i need to give them a special notice . Can i say i am not renewing the lease and just rent to someone else for $7000 i dont think he can go that high. The lease is up can i choose to rent to someone else and not offer it to them .
Thanks george
60 day minimum advance notice for any rent increases above 10%.
I am nit a corporation owner
George
Hello Mylene,
Thank you for sharing your knowledge and information. Searching for the accurate CPI for my 92131 area in San Diego has been frustrating. Now that I have found your site, I can breath a sigh of relief. What is the current CPI I should use in calculating an increase for February 2023?
Thank you for your assistance!
Would it still be 7.9 CPI?
The max is 10% for rent increase.