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New rent increase limits


New rent increase limits

Top line:

For many renters in Los Angeles and Orange County, there will be little difference this year in the maximum allowable rent increase their landlords can charge under state law. Starting August 1, the limit will rise to 8.9 percent, up from 8.8 percent last year.

Why now: Under the nationwide Tenant Protection Act, new limits on annual increases come into force on August 1 each year. The law allows rent increases to rise in line with inflation. The higher inflation gets, the more landlords can raise rents. That’s why in 2022, when inflation was particularly high, the maximum legally permitted rent increase of 10% applied.

Who does it apply to: The renter protection law generally applies to apartment buildings built more than 15 years ago. If you live in a newer building, your landlord may be able to raise your rent even more. There are exceptions. In about a dozen cities in Southern California, stricter local rent control laws further restrict rent increases. Here is Our Guide to find out the rules in your area.

For many renters in Los Angeles and Orange County, there will be little difference this year in the maximum allowable rent increase their landlords can charge under state law. Starting August 1, the limit will rise to 8.9 percent, up from 8.8 percent last year.

Why now

Under the nationwide Tenant Protection Act, new limits on annual increases come into force on August 1 each year. The law allows rent increases to rise in line with inflation. The higher inflation gets, the more landlords can raise rents. That’s why in 2022, when inflation was particularly high, the maximum legally permitted rent increase of 10% applied.

The background story

The California Tenant Protection Act, passed in 2019, sets a cap on how much landlords can increase rent annually. It applies to many, but not all, multifamily properties in California. The law allows an annual increase of 5% plus the change in the local consumer price index—up to a hard cap of 10%.

The calculation for this year is based on the Consumer Price Index for the Los Angeles metropolitan area in April, where it was 3.9%. Add that to the statutory base of 5% and you get the new cap of 8.9%, which takes effect on August 1. This cap will remain in effect until August 1, 2025, when it will be reset again based on new inflation data.

Who does it apply to?

The Tenant Protection Act generally applies to apartment buildings that were built more than 15 years ago. If you live in a newer building, your landlord may be able to increase the rent even further.

There are exceptions. In about a dozen Southern California cities, stricter local rent control laws further limit rent increases. For example, LA caps annual increases at 4% in buildings covered by the city’s rent stabilization ordinance, and 6% in units where landlords pay their tenants’ gas and electric bills. Here is Our Guide to find out the rules in your area.

This is what you can do if your rent is increased unlawfully

Find tenants in LA County and LA City information over the 8.9% limit for Local authority websitesHowever, previous LAist reporting found that some cities in the county failed to release timely information about their local rent controls.

Landlords must give tenants 30 days’ notice for rent increases of up to 10%. If you’re a renter in LA or Orange County covered by the Tenant Protection Act and your landlord gives you a rent increase of more than 8.9% starting August 1, you are not legally obligated to pay the higher amount. However, if you have questions about how to challenge an illegal increase or how these rules apply to your apartment, you can contact StayHousedLA.orga coalition of legal aid organizations funded by the City and County of LA

What questions do you have about living in Southern California?

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