Your tenant pays on time, takes care of the place, and has been there a while. Meanwhile your insurance, property taxes and repair costs keep going up. At some point every owner asks the same question: how much am I actually allowed to raise the rent?

In California, the answer depends on a state law called the Tenant Protection Act, and on one small notice that a lot of owners of single-family homes never send.

The Tenant Protection Act (often called AB 1482) took effect January 1, 2020, and is currently set to expire January 1, 2030. For covered properties, rent can't go up more than 5% plus the change in the cost of living, or 10%, whichever is lower, over any 12-month period.

The California Attorney General publishes the maximum allowed increase each year. For counties outside the big metro areas the state tracks separately, which includes San Luis Obispo County, the cost-of-living figure comes from the April California Consumer Price Index. According to the Attorney General's current chart, the maximum increase for those counties is:

• 7.7% for increases taking effect August 1, 2025 through July 31, 2026
• 8.6% for increases taking effect August 1, 2026 through July 31, 2027

Some cities and counties have their own stricter rent rules. When a local cap is lower, the local rule applies. The Attorney General's list of local rent caps doesn't currently include any city in San Luis Obispo County, but always double-check your city before you send an increase.

Here's where many owners get tripped up. Several types of housing are exempt from the state cap and its eviction rules, including:

• Housing built in the last 15 years (this is a rolling window, so it changes every year)
• A duplex where the owner lives in one of the units for the entire tenancy
• A single-family home or condo, but ONLY if (1) it is not owned by a real estate investment trust, a corporation, or an LLC with at least one corporate member, AND (2) you gave the tenant written notice that the tenancy is not subject to the Tenant Protection Act's rent limits and just cause requirements

That second condition is the one I see owners miss. If you own a single-family rental and never gave that written notice, your home may not be exempt, even if it otherwise would be.

Once a tenant has lived in the unit for 12 months, the Tenant Protection Act generally requires a legally recognized reason, called "just cause," to end the tenancy. Some just-cause reasons are "no-fault," such as the owner moving in or major remodeling. In many no-fault situations, the owner must pay the tenant relocation assistance equal to one month's rent (some cities require more). Senate Bill 567, effective April 1, 2024, tightened several of these rules, so if you're relying on older paperwork, it's worth a fresh look.

1. Confirm whether your property is covered or exempt (and whether the required notice was given).
2. Check the Attorney General's current maximum for the 12-month period you're in.
3. Look back at every increase in the last 12 months, because the cap is cumulative.
4. Check for any local rules in your city.
5. Give proper written notice of the increase, and keep a copy.
6. Compare your rent to current market rents so your increase is fair and keeps a good tenant in place.

Whether you manage your own property or you're tired of keeping up with the rule changes, I'm happy to talk it through. I can help you look at where your rent sits in today's market and what your options are. Call or text me at (805) 400-5543, email CentralCoastLiz@gmail.com, or visit my property management page to set up a consultation.

Liz Anderson, Broker/Owner, Central Coast Premier Realty | DRE #01462145

General information, not legal advice. Landlord-tenant law changes often and every situation is different, so talk with a landlord-tenant attorney before acting on a specific tenancy.

Equal Housing Opportunity.

• California Attorney General, "Limits on Rent Increases"
• California Attorney General Consumer Alert, "Tenant Protection Act — Landlords and Property Managers"
• City of Downey, "AB 1482 (California Tenant Protection Act of 2019)"