Understanding Rent Gouging Laws in California

If you’re renting in California, you might be concerned about sudden or steep rent hikes. Understanding what is and isn’t allowed—especially in terms of rent gouging—can help you protect your rights. California has specific laws that put a limit on how much your rent can be raised each year under most circumstances. This article covers what rent gouging means in California, your protections under state law, and what you can do if you think your landlord is overstepping.

What Is Rent Gouging in California?

Rent gouging generally refers to landlords raising rent far above normal market rates, sometimes under the pressure of emergencies or disasters. In California, there are strict laws regarding how much—and how often—your rent can be increased, especially since 2020 with the passing of California Civil Code Sections 1946.2 and 1947.12 (often called AB 1482 or the Tenant Protection Act) and during declared emergencies.

How California Law Defines and Limits Rent Increases

• Statewide Rent Cap (AB 1482): Most rentals built before January 1, 2005, have a maximum annual rent increase of 5% of the current rent plus inflation (Consumer Price Index), not to exceed 10% total.
• Exceptions: Single-family homes (when the owner is not a corporate entity and gives proper written notice), new construction (within past 15 years), and some affordable housing are exempt.
• During Emergencies: When the governor or local authorities declare a state of emergency (such as wildfires, earthquakes, or COVID-19), California Penal Code 396 caps rent increases at 10% during the emergency period.

Charging more than these legal caps is considered rent gouging and is prohibited by law. If your landlord attempts to increase your rent above these limits, especially during an official state of emergency, it may be illegal.

How to Tell if a Rent Increase is Legal

Always review your rental agreement and be aware of periodic changes to state or local laws. Ask these key questions:

• Is your unit covered by AB 1482 rent caps?
• Did the landlord give you written notice of the rent increase?
• Is the increase over 5% + CPI (or 10% total) in one year?
• Is there a state of emergency in effect?

Official Forms for Renters: How and When to Use Them

1. Notice of Rent Increase

• Form Name: There is no standardized state-wide "Notice of Rent Increase" form, but California law requires landlords to provide written notice for any rent hike. The notice must state the amount and the effective date.
• How It’s Used: Landlords must give at least 30 days’ written notice for increases of 10% or less over a 12-month period, or 90 days’ notice for increases beyond 10%. For guidelines and sample notice, see the California Department of Housing and Community Development – Renter Resources.
• Practical Example: If your rent is $2,000 and your landlord wants to raise it to $2,150 (an increase of 7.5%), they must provide at least a 90-day written notice if beyond the capped amount; otherwise, 30 days’ notice is sufficient if within legal limits.

2. Tenant Complaint Form (Local City or County Agencies)

• Form Name/Number: Varies by city or county, but many local rent boards or housing departments provide “Tenant Complaint” forms on their websites.
• How It’s Used: Renters can submit this form if they believe their landlord is attempting an illegal rent increase. Check your local agency, such as the Los Angeles County Department of Consumer and Business Affairs – Rent Stabilization.
• Practical Example: If you receive a rent increase above the cap, you can use the appropriate complaint form to begin the local enforcement process.

Who Oversees Rent Gouging Issues in California?

Statewide, the California Department of Housing and Community Development (HCD) oversees tenant-landlord matters. Many cities (Los Angeles, San Francisco, Oakland) have their own rent boards or housing authorities to handle complaints, enforce rent caps, and intervene in cases of suspected rent gouging or other disputes.

Relevant Legislation

• California Civil Code Sections 1946.2 and 1947.12 (Tenant Protections)
• California Penal Code Section 396 (Price Gouging Law)

For further information, visit the California Department of Housing and Community Development.

Common Signs of Rent Gouging

• Rent raised above 10% in a year
• Landlord cites a state of emergency as reason for large increase
• No written notice of increase provided
• Rent increase on units covered by AB 1482 without valid exemption

If you experience any of these, it’s a good idea to seek guidance from a local or state housing agency.

Actions to Take if You Suspect Rent Gouging

• Review your rental agreement and determine whether your unit is covered under California’s rent cap laws.
• Carefully read any rent increase notice and check calculation of percentage increase.
• Document all communications with your landlord, including notices and correspondence.
• Contact your local housing department or rent board and ask about submitting a complaint.

FAQs About Rent Gouging and Rent Caps in California

1. How much can my landlord legally increase my rent in California?
   Under most circumstances, the annual rent increase cannot exceed 5% plus inflation, or a total cap of 10%, for units covered under California’s Tenant Protection Act.
2. What happens if my landlord raises rent more than the legal limit during a state of emergency?
   This is considered illegal rent gouging. You may file a complaint with your local housing authority or district attorney’s office for enforcement.
3. Are all rentals protected by the statewide rent cap?
   No. Some properties—like newer buildings (within 15 years), single-family homes (with exemptions), and affordable housing—are not covered.
4. What should I do if I get an illegal rent increase notice?
   Document the notice, do not pay the increased rent, and contact your local housing agency or rent board for next steps.
5. Where do I submit a complaint about illegal rent increases?
   Start with your city or county rent board or housing department. Statewide concerns can also be brought to the California Department of Housing and Community Development.

Key Takeaways for California Renters

• Rent gouging is illegal in California—annual increases are capped for most units.
• Special restrictions apply during states of emergency.
• If you suspect an illegal rent increase, document everything and reach out to your local housing agency.

Knowing your rights can help you respond quickly and confidently if your landlord tries to raise rent above what’s allowed under the law.

Need Help? Resources for Renters

• California Department of Housing and Community Development (HCD) – For state laws, tenant resources, and complaints.
• LA County Rent Stabilization – For Los Angeles renters facing rent gouging issues.
• San Francisco Rent Board – Handles rent increase disputes and tenant complaints in San Francisco.
• California Attorney General – Landlord/Tenant Resources

---

1. California Civil Code Sections 1946.2 and 1947.12
2. California Penal Code Section 396 (Price Gouging Law)
3. California Department of Housing and Community Development

Categories

Renter Rights & Legal Protections Lease Agreements & Renewals Rent, Fees & Security Deposits Moving In: Inspections & Disclosures Moving Out & Ending a Lease Maintenance, Repairs & Habitability Health & Safety Standards Evictions & Lease Violations Roommates, Subletting & Shared Housing Discrimination & Fair Housing Laws Accessibility & Disability Accommodations Utilities, Services & Billing Affordable Housing & Rental Assistance Rent Control & Rent Stabilization Privacy Rights & Landlord Entry Security, Locks & Emergency Protections Dispute Resolution & Legal Aid Retaliation & Harassment Protections Mobile Home & Manufactured Housing Rights Special Housing Types & Situations