Rent Cap Law – Is It Actually Working?


California’s rent cap law was one of the most controversial laws passed in California but now that it’s been active for more than 2 years, the big question that needs to be asked is if it’s actually working, or not?

In this article, we will answer this question and offer insight into what the rental market in California will look like in the near future.

About The Rent Cap Law

California’s rent cap law, Assembly Bill 1482, passed in 2019. Authored by then-Assemblymember David Chiu of San Francisco, the law caps annual increases for current tenants at 5% plus the regional rate of inflation, with a maximum possible increase of 10%. The law applies to all apartment units that were constructed more than 15 years ago. It does not apply to single family homes — unless they’re owned by a corporate landlord — or duplexes where the owner occupies one of the units.

The law does not affect established ordinances. In San Francisco, where rent control only covers apartments built before 1979, the rent cap law provides an additional layer of renter protections to tenants in non-rent controlled units. The law also requires landlords to provide a “just cause” in order to carry out an eviction.


Is The Rent Cap Law Working?

As of November 2022, the Rent Cap Law in California has been a modest success, but it’s still hotly contested by landlords who feel that the rent cap law stops them from being able to continue raising rents along with inflation.

With a new year fast approaching, and COVID-19 eviction protections coming to an end statewide, it’s likely that we will see the battle between landlords and the state continue.

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