How much can I raise the rent each year?

If your rental property is exempt from AB 1482, the maximum rent increase in California to 5% plus CPI, or at 10% (whichever is lower) per a 12 month period.

How many times may I increase the rent each year?

For tenants who have lived in the unit for more than 12 months, you may raise the rent up to two times within that period, as long as the total increases do not exceed the state’s rent cap.

If the renter moves out, can I raise the rent to more than 5% plus CPI?

Yes, the new law does not affect your right to raise the rent to market once a tenant vacates the unit. However, once a new renter is placed in the unit, any future rent increases on that tenant will be subject to the rent cap.

How to Explain Rent Increase to Tenant?

You might want to write a letter that explains why you’re raising the rent. It is common to increase the rent once in a while to accommodate for changes in the real estate market, taxes, and maintenance.

Rent Increase Letter to Tenant (template)




                                       NOTICE OF RENT INCREASE


As indicated in your lease, your lease at [PROPERTY ADDRESS] will end on [LEASE EXPIRATION DATE – write in full]. 

Please note that the monthly rent for the above [PROPERTY ADDRESS] will increase from [OLD RENT AMOUNT] to [NEW RENT AMOUNT] effective [DATE OF NEW LEASE – write in full].

If you do not wish to renew your lease, please provide your notice as soon as possible or at the required 30 days, no later than [DATE OF LAST NOTICE REQUIRED – write in full].

If you have any questions, please do not hesitate to contact me.






Note: This content is not intended to substitute, replace, or be construed as professional legal advice. It is for referential purposes only and not meant to replace the advice of your legal counsel, legal representation, and or lawyer. Please consult your professional legal representation or lawyer to ensure you are compliant with any local, state, and/or federal laws.

Kong Property Management Group provides property management and leasing services to the greater part of Silicon Valley. We specialize in single-family homes, condos, townhomes, duplexes, as well as apartment buildings. Based in San Jose, Kong Property Management Group is a local and family-owned business with over 15 years of combined experience in residential property management, real estate sales, and appraisal.