As a property manager in San Diego, understanding the rules surrounding rent increases is critical to ensuring compliance and maintaining strong relationships with tenants. California’s statewide rent control laws, combined with specific considerations for San Diego, create a framework that property managers must navigate carefully. This guide breaks down the latest regulations, explains how to calculate allowable rent increases, and offers best practices for implementing changes legally and effectively.

Overview of California’s Rent Control Laws

The California Tenant Protection Act (AB 1482), enacted on January 1, 2020, governs rent increases across the state, including San Diego. This law caps annual rent increases at 5% plus the local Consumer Price Index (CPI), with a maximum limit of 10%. The goal is to balance tenant protections with landlords’ ability to adjust rents based on inflation and market trends.

For the period of August 1, 2024, to July 31, 2025, the maximum allowable rent increase in San Diego is 8.6%. This figure comes from adding the local CPI of 3.6% to the base 5%, which stays below the 10% cap.

Does San Diego Have Additional Rent Control?

San Diego does not have its own local rent control ordinance beyond the statewide regulations under AB 1482. However, property managers must still determine whether their properties fall under these rules or qualify for exemptions, as this affects how much rent can be raised.

Which Properties Are Subject to Rent Control?

Not all rental properties in San Diego are subject to AB 1482. Common exemptions include:

• Newer buildings: Properties with a certificate of occupancy issued within the last 15 years.
• Single-family homes or condos: Unless owned by a corporation or real estate investment trust.
• Owner-occupied duplexes: Where the landlord lives in one unit.
• Specialized housing: Such as low-income housing or school-owned properties.

If a property is exempt, landlords can raise rent without the 10% cap, but they must still follow proper notice requirements.

How to Calculate the Maximum Rent Increase

For properties covered by AB 1482, calculating the maximum allowable rent increase is straightforward:

• Formula: Maximum Increase = 5% + Local CPI (up to 10%).
• Example: If the San Diego CPI is 3.6%, then 5% + 3.6% = 8.6%. This is the maximum increase allowed for 2024-2025.
• Higher CPI Scenario: If the CPI were 6%, the total would be 11%, but the cap limits the increase to 10%.

Landlords can implement up to two rent increases per year, provided the combined total does not exceed the annual cap (e.g., 8.6% for 2024-2025).

Notice Requirements for Rent Increases

Proper notification is a legal requirement:

• Increases of 10% or less: Requires a 30-day written notice.
• Increases over 10%: Requires a 60-day written notice.

Since AB 1482 caps increases at 10%, most rent hikes will only need a 30-day notice. For exempt properties, however, a 60-day notice applies if the increase exceeds 10%.

Best Practices for Property Managers

When raising rent, communication is key to maintaining tenant trust. Consider these tips:

• Provide clear written notice: Include the new rent amount, effective date, and a brief explanation (e.g., rising operational costs).
• Be transparent: Address tenant questions with facts about the law and your calculations.
• Stay professional: A respectful tone can prevent disputes and preserve tenant relationships.

Addressing Tenant Concerns

Tenants may question or challenge a rent increase. Property managers should:

• Listen patiently and explain the legal basis for the increase.
• Direct tenants to resources like the Legal Aid Society of San Diego for additional support.
• Keep records of all communications in case disputes escalate.

Staying Informed on Rent Increase Laws

Regulations can evolve, so property managers must stay proactive. Useful resources include:

• California Department of Real Estate: For statewide updates.
• San Diego Housing Commission: For local housing insights.
• Property management associations: For industry-specific guidance.

Consulting a legal professional is also wise if you’re unsure about a property’s status or compliance requirements.

Why Property Managers Matter in Rent Adjustments

Navigating rent increase laws in San Diego requires expertise and diligence. As a property manager, you play a vital role in ensuring landlords comply with regulations while keeping tenants informed and satisfied. By mastering the rules, accurately calculating increases, and communicating effectively, you can streamline the process and enhance your reputation as a trusted professional.

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