New rent hike limits go into place this week. What you need to know

Many renters in Los Angeles and Orange counties will see little difference in the maximum allowable rent increase their landlords can charge this year under state law. Starting Aug. 1, the limit will rise to 8.9% compared with 8.8% over the past year.

Why now

Under the statewide Tenant Protection Act, new limits on annual increases go into effect each year on Aug. 1. The law allows rent increases to rise along with inflation. The higher inflation gets, the more landlords can increase rents. That's why in 2022, when inflation was running especially high, the law’s maximum allowable rent hike of 10% was in place.

The backstory

California's Tenant Protection Act, passed in 2019, puts a ceiling on how much landlords can raise rents each year. It covers many, but not all, apartment buildings in California. That law allows a 5% annual increase plus the change in the local consumer price index — up to a firm limit of 10%.

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This year's calculation is based on the consumer price index for the L.A. metro area in April, which was 3.9%. Add that to the law's 5% baseline and you get the new limit of 8.9% taking effect on Aug. 1. That cap will remain in place until Aug. 1, 2025, when it will reset again based on new inflation data.

Who it applies to

The Tenant Protection Act generally applies to apartment buildings constructed more than 15 years ago. If you live in a newer building, your landlord may be allowed to raise your rent even higher.

There are exceptions. In about a dozen Southern California cities, stronger local rent control laws further limit rent hikes. For example, L.A. now caps annual increases in buildings covered by the city's rent stabilization ordinance at 4%, or 6% in units where landlords pay for their tenant's gas and electric bills. Here’s our guide to figuring out the rules in your area.

What to do if you receive an illegal rent hike 

Renters in L.A. County and the city of L.A. can find information about the 8.9% limit on local government websites. That said, previous LAist reporting found some cities in the county did not post timely information about their local rent control rules.

Landlords must give tenants a 30-day notice for any rent hike of up to 10%. If you’re an L.A. or Orange County renter covered by the Tenant Protection Act and your landlord gives you a rent increase starting on Aug. 1 that exceeds 8.9%, you are not legally obligated to pay the higher amount — but if you have questions about how to fight an illegal increase or how these rules apply to your housing, you can reach out to StayHousedLA.org, a coalition of legal aid organizations funded by the city and county of L.A.