When Can Landlords Pass Costs to Tenants in California?

In California, understanding when your landlord can raise your rent—especially for pass-through costs—can help you avoid unexpected increases and ensure your rights are protected. This article explains what pass-through costs are, how rent increases are regulated, and what forms and protections renters have under state law.

What Are Pass-Through Costs?

Pass-through costs are specific expenses that landlords may be allowed to add to your regular rent, such as costs for improvements, certain repairs, or government-approved fees. But, under California law, not every cost qualifies—and strict rules apply, especially in cities with rent control or rent stabilization.

California Rent Control and Pass-Throughs

Statewide, California’s Tenant Protection Act of 2019 (AB 1482) sets annual caps on rent increases for many units. However, some cities have additional local rules about pass-through expenses and greater protections for renters.

• State law (AB 1482): Limits annual rent increases (usually to 5% plus local inflation, but never above 10%). Pass-throughs outside these limits are generally not allowed unless local law says otherwise.
• Local rent boards: In places like Los Angeles, San Francisco, and Oakland, special rent stabilization ordinances allow for some pass-throughs—like capital improvement costs—but only with approval and notice.

Not sure if you’re covered under AB 1482? Check your rental’s specifics or contact the California Department of Housing and Community Development.

Common Pass-Through Charges

• Capital Improvements: Such as roof replacements or seismic upgrades—sometimes shared with tenants after city approval.
• Utility Surcharges: Local governments may allow landlords to pass along certain utility increases.
• Registration or Regulatory Fees: For example, in some cities, a portion of rent board fees may be passed on.

Pass-through costs often require landlord applications to the local rent board, tenant notification, and sometimes hearings. Renters can challenge improper or excessive charges.

How Are Rent Increases and Pass-Throughs Regulated?

Statewide, AB 1482 covers most multi-unit buildings built before 2005. Older apartments in cities with special rent-control boards (like Los Angeles Rent Stabilization Ordinance) have even stricter rules, including application and approval processes for pass-throughs.

Notice Requirements for Rent Increases and Pass-Throughs

• Written notice: For any rent increase or pass-through, landlords must provide at least 30 days’ written notice (or 90 days for increases over 10%).
• Required form: In many cities, landlords must use the official rent increase or pass-through notice form. For example: Los Angeles uses the "Notice of Rent Increase for Capital Improvements" form.

Example: Filling Out a Pass-Through Form

If a Los Angeles landlord wants to raise your rent to cover an approved capital improvement, they must submit the "Applications for Capital Improvement Surcharge" (LAHD Form) to the Los Angeles Housing Department. Tenants receive a copy and can contest the increase by submitting a response within the allowed timeframe.

What If You Think a Pass-Through Is Improper?

Tenants who believe a rent increase or pass-through charge is not allowed can:

• Contact their city rent board or the California Department of Housing and Community Development
• Submit an official complaint or petition to the local board
• Request a hearing if needed

To dispute a rent increase in Los Angeles, you can use the "Tenant Appeal Form" (LAHD), which is used to request a review or hearing on rent surcharges or increases.

Relevant Government Forms for Renters

• Notice of Rent Increase for Capital Improvements (LAHD): Used by landlords in Los Angeles to notify tenants of surcharges for improvements. Provided directly to tenants and the rent board. See and download the official form.
• Tenant Appeal Form (LAHD): Tenants use this to contest rent increases or pass-through charges before the rent board. File it after receiving notice. Access the Tenant Appeal Form.

If you are outside Los Angeles, check your city or county rent board’s website for proper forms and deadlines.

Where to Get Official Help

The main body overseeing rental disputes in California is the California Department of Housing and Community Development (HCD). Many cities also have their own rent boards or housing departments, such as the Los Angeles Housing Department or San Francisco Rent Board.

FAQs: California Pass-Through Costs & Rent Increases

1. Can my landlord add any cost to my rent as a pass-through?
   No, landlords can only add specific pass-through costs if allowed by state or local law, and typically with approval from a rent board or after following proper notice procedures.
2. How much notice must my landlord give before applying a pass-through?
   At least 30 days’ written notice is required, or 90 days for increases greater than 10%.
3. Are single-family homes covered by these protections?
   Most single-family homes are exempt from California’s statewide rent cap and pass-through restrictions, unless owned by large corporations or located in cities with local ordinances.
4. Where do I file a complaint about an improper surcharge?
   File with your city’s rent board or the California Department of Housing and Community Development for state-level concerns.
5. Can I challenge a pass-through or rent increase?
   Yes. Tenants can contest a rent increase by filing an appeal form with the appropriate rent board if they believe the charge is unfair or not allowed.

Key Takeaways for California Renters

• Landlords must follow state and local rules and always give written notice for pass-through costs.
• Very few charges can be added to rent unless formally approved.
• You have the right to contest improper pass-throughs or rent increases via official forms and local rent boards.

Need Help? Resources for Renters

• California Department of Housing and Community Development (HCD): State-level oversight and renter resources.
• Los Angeles Housing Department - For Renters: Local board handling rent cases in LA.
• San Francisco Rent Board: Support for pass-through, eviction, and rent dispute issues in San Francisco.
• California Government – Housing Resources: General housing contact and help services.

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1. California Civil Code, Part 4, Title 5, Chapter 2 – Tenant Protections
2. California Department of Housing and Community Development (HCD)
3. Los Angeles Housing Department - Rent Stabilization Ordinance
4. San Francisco Rent Board

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