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Contemporary Information Corp (CIC) offers rental property owners wide-ranging data on relevant laws and statutes in the rental process. This includes assistance in the screening of potential tenants.
A major factor in determining how much landlords can charge potential tenants is rent control legislation. A hotly debated issue, rent control offers renters the benefits of stability and affordability, protecting them from sudden increases in rent. However, it may impact landlords’ ability to earn profits on properties that represent substantial investments.
In recent years, the momentum has shifted in the direction of rent control, though with significant differences state-to-state. California’s landmark Tenant Protection Act of 2019 (AB 1482) went into effect on January1, 2020, and will remain in force a full decade. It stipulates that landlords must have “just cause” for terminating a tenancy and caps annual rent increases at 10 percent, or five percent plus the local Consumer Price Index (CPI, essentially inflation rate), whichever is lower.
Tenants are not allowed to waive rights to such protections and any such agreement to waive rights is deemed as contrary to public policy. The penalty for non-compliance can be substantial, with tenants filing a Report of Excessive Rent Increase with the Rent Board in cases where violations occur. San Francisco has its own, even more restrictive regulations.
Some units are exempt from rent cap limits and the “just cause” regulations in AB 1482. These include units that were built in the last 15 years (this updates on a rolling basis). It also doesn’t apply to units that have legal documents designating them low and moderate income households. Two-unit properties are also exempt, so long as the second unit is occupied by the property owner across the entire tenancy period.
It’s worth noting that state law permits landlords in California to raise the rent only twice in any 12-month span, with the total increase not extending beyond the yearly cap. Any proposed rent increase requires adequate notice. Some cities, such as Oakland and East Palo Alto, only allow a single rent increase yearly, unless the unit in question is rent control exempt.
The California legislature is presently considering AB 1157, which in 2025 advanced through the Assembly Housing and Community Development Committee, but failed to reach the Assembly Judiciary Committee. The aim is to reduce the maximum annual residential rent increase from 5 percent plus inflation, to 2 percent plus inflation (capped at 5 percent). The proposed legislation also seeks to extend “just-cause” eviction requirements and rent caps to a variety of exempt housing types, from single-family homes to condominiums, and would eliminate the 2030 sunset date on rent control.
Opponents of the bill, including the California Apartment Association, argue that provisions in it will dampen rental housing investments, which will worsen the state’s housing shortage and make life harder for small property owners. Contemporary Information Corp helps improve the understanding of complex and evolving regulations and has a vital role in informing California property owners of their current options in raising rent.