Below are questions asked by rental property owners regarding rent increases, followed by answers provided by the law firm of Simone and Blevins.
Please note: AB 1482 enacted the Tenant Protection Act of 2019, creating statewide rent control for residential rental properties. All references to California rent control in this article refer to the Tenant Protection Act of 2019.
Question One: I own a condo under my family trust that is located in El Cajon and was built in 1985. It needs a lot of work. I am worried about rent control restricting me from remodeling the unit. Another landlord I know told me that my condo is exempt from California rent control. Is my property exempt?
Answer One: Yes, your condo is exempt from California rent control (also known as the Tenant Protection Act of 2019 or AB 1482) as long as you provide your tenant with a proper notice of exemption. Single-family homes and condos qualify for the exemption IF:
- The owner is not a corporation, not an LLC with at least one owner who is a corporation, and not a real estate investment trust (REIT). Ownership by individuals, partnerships, individual co-owners, trusts, and LLCs with no corporate owners, all qualify for the exemption; AND
- The owner gives the tenant a legally-required notice of exemption.
Other cities in San Diego County have additional requirements to claim this exemption (e.g. City of San Diego, Chula Vista, Imperial Beach). However, there is currently no local rent control ordinance in El Cajon.
Q2: I own a single-family home in Encinitas. I believe my rental property is exempt from the California rent control. What information do I need to give my tenant to claim the exemption?
A2: To qualify for the exemption from California rent control, you must include the notice of exemption in the lease/rental agreement. The exemption notice must state the following:
“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”
Q3: I have a tenant that is on a month-to-month agreement and rents one of my condos in La Mesa. I gave my tenant notice of exemption from California rent control. I would like to increase the tenant’s rent by 13%. Can I increase the rent more than 10% and, if so, what type of notice do I need to give?
A3: Yes, if your property is exempt from California rent control, there is no current cap on rent increases for your rental property. However, effective January 1, 2020, the notice requirements for rent increases of more than 10% changed. Landlords must provide tenants with 90 days’ written notice if the rent increase is more than 10% in a 12-month period. This applies if the rent increase is more than 10% by itself or when combined with any other rent increases during the preceding 12-month period. Please note, this only applies to those exempt from the rent cap created by the California rent control and any local ordinance. Rent increases of less than 10% remain subject to a 30 days’ notice. For example, if you give your tenant a 5% increase, you are required to give the tenant a written 30 days’ notice. If you decide to increase the rent again by another 6% within the 12-month period, then the second increase will need 90 days’ written notice. Remember, you cannot raise the rent by more than 10% during a state of emergency.
Q4: I plan on increasing my tenant’s rent by less than 10% with a 30 days’ notice. Am I required to serve this notice personally, or can I just serve him by standard U.S. mail?
A4: You may serve a notice to increase rent personally or by first class mail. If you decide to serve your tenant personally, it must be done 30 days before the increase becomes effective. The other option is to mail the notice to your tenant. However, an additional five days must be added to the timeline. For instance, if you choose to mail the notice to your tenant, you must put it in the mail at least 35 days prior to the rent increase. Remember that if the increase is greater than 10%, you are required to mail the notice 95 days prior to the effective date.
Q5: I own an apartment building in San Diego that is subject to the San Diego Residential Tenant Protection Ordinance. Do I have to comply with the rent caps of the California Tenant Protection Act of 2019?
A5: Yes, your property is subject to the California rent caps. After tenants have lived in the unit for more than 12 months, you may increase the rent up to the applicable rent cap using no more than two rent increase notices within a 12-month period. City of San Diego rent increases that are effective August 2026 through July 2027 are currently capped at 8.2% (5% + CPI increase of 3.2%).
Q6: I spoke with my tenant last week and told her that the rent will be increased by $50 beginning on the first of the month. Is an oral notice of rent increase sufficient?
A6: No, a rent increase notice must be in writing. Email and text messages do not suffice.
Q7: I am planning to increase the rent on my exempt Del Mar condo in the next month by 12%. However, the city just enacted a local emergency ordinance due to a series of fires after a long drought. Can I raise the rent above 10%?
A7: No, Penal Code Section 396(e) makes it illegal to increase the rent more than 10% during a state of emergency declared by the city, county, or state. A state of emergency or local emergency includes, but is not limited to; an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster. There is a limited exception if an increase is directly attributable to additional costs for repairs or additions beyond normal maintenance that were amortized over the rental term that caused the rent to be increased greater than 10%, or the increase was contractually agreed to by the tenant prior to the proclamation or declaration.
The law firm of Simone & Blevins has been doing evictions for over 28 years. Their office is open Monday – Friday from 9:00 AM to 5:00 PM. Tel: 619-235-6180, website: www.landlordslegalcenter.com, or email info@simonelawfirm.com.