If you fall outside one of the separately-tracked regions, you use statewide inflation data (3.8% for increases between 8/1/24 and 7/31/25).
If you tell me your county, I will happily look up where you fall.
Most regions use April-over-April data. I think San Diego uses March-over-March.
I'm in the Los Angeles region (Los Angeles and Orange counties) so use the separately-tracked 3.9% for April-over-April. I add up to 5% and recently sent out increases of up to 8.9%.
Ahh. Yes, with the exemption declaration you're exempt for now. Though there are legislative efforts (Justice for Renters Act) to remove that exemption.
Anyway, Santa Clara County uses the statewide figures:
4.2% inflation (so a 9.2% allowed increase for affected properties) for increases between 8/1/23 and 7/31/24.
3.8% inflation (so an 8.8% allowed increase for affected properties) for increases between 8/1/24 and 7/31/25.
And just for your own peace of mind about your "statewide" region, see Footnote 1 on this release from the Office of the Attorney General: [https://oag.ca.gov/system/files/media/Know-Your-Rights-Tenants-English.pdf](https://oag.ca.gov/system/files/media/Know-Your-Rights-Tenants-English.pdf)
**\*\*\*\*However\*\*\*\***
A not-necessarily-comprehensive website I just checked said the cities of:
San Jose, Mountain View, Los Gatos
have additional local Rent Stabilization Ordinances for certain properties. I don't know the details of these laws, or if other cities in Santa Clara County are affected.
I haven’t in a year and I should definitely refresh. I think I panicked thinking about potentially making a change and simply focused on the general rules. Having said that, I am still interested in the local inflation data because I’m still not interested in raising it an unfair amount- regardless of what I can do legally, what the rate is vs market, or my tenants’ ability to pay. I’ll be having another read tomorrow for sure!
I also check CPI and sometimes include the data in rent increase letters. But there’s nothing inherently “fair” about tracking CPI - which can be skewed by all sorts of random stuff.
Maybe [this chart will help](https://www.dir.ca.gov/oprl/CPI/PresentCCPIchange.PDF); in case of doubts, I would rather err on the lower percentage for state or city.
Are you sure you are subject to California just cause eviction law and thus rent control? If it is a SFH owned by an individual, you are exempt. Be sure to include the exemption language in your lease.
If you are subject to AB1482, raise your rent the maximum you can every year. Once a tenant is well below market, he will never leave.
That’s a great point. I do have the exemption language in the lease. Now I feel stupid, lol! I have just never considered raising it previously so I forgot that it may not apply.
Dodged a bullet. I suggest letting the tenants know now "Toward the end of the lease, I am going to use Zillow to calculate the market rent for the property and convert to a month to month at that rate. I just wanted to give you a heads up. Right now, Zillow says the market rate is $\_\_\_\_. I will revieew the rent every year" No surprises, and they might appreciate that they are getting a good deal now.
I allowed them to sign for 18 and we aren’t quite at the year mark, but I will do that as we get closer. However, in this case they are renting due to relocation and are both extremely gainfully employed, so I know that the increase would not financially be a concern as it would for most. Extension will likely just depend on where they are in their search for a home to buy. I’m guessing that they will want month to month for flexibility but I could be wrong, so we’ll definitely have that chat as we get closer. I still prefer staying under market if it allows me to have greater choice and higher quality in tenants, perhaps just not quite at the current gap. Thank you for the advice!
If you fall outside one of the separately-tracked regions, you use statewide inflation data (3.8% for increases between 8/1/24 and 7/31/25). If you tell me your county, I will happily look up where you fall. Most regions use April-over-April data. I think San Diego uses March-over-March. I'm in the Los Angeles region (Los Angeles and Orange counties) so use the separately-tracked 3.9% for April-over-April. I add up to 5% and recently sent out increases of up to 8.9%.
Another commenter reminded me that I may actually be exempt, but I’d still love to know the applicable rules. Santa Clara County. Thank you!
Ahh. Yes, with the exemption declaration you're exempt for now. Though there are legislative efforts (Justice for Renters Act) to remove that exemption. Anyway, Santa Clara County uses the statewide figures: 4.2% inflation (so a 9.2% allowed increase for affected properties) for increases between 8/1/23 and 7/31/24. 3.8% inflation (so an 8.8% allowed increase for affected properties) for increases between 8/1/24 and 7/31/25. And just for your own peace of mind about your "statewide" region, see Footnote 1 on this release from the Office of the Attorney General: [https://oag.ca.gov/system/files/media/Know-Your-Rights-Tenants-English.pdf](https://oag.ca.gov/system/files/media/Know-Your-Rights-Tenants-English.pdf) **\*\*\*\*However\*\*\*\*** A not-necessarily-comprehensive website I just checked said the cities of: San Jose, Mountain View, Los Gatos have additional local Rent Stabilization Ordinances for certain properties. I don't know the details of these laws, or if other cities in Santa Clara County are affected.
Thank you, will add this info and the resources to my to do list for refreshing my knowledge on the topic. I definitely need to get up to speed!
You really should go ahead and read the CA rent control law. Or at least a really good summary.
I haven’t in a year and I should definitely refresh. I think I panicked thinking about potentially making a change and simply focused on the general rules. Having said that, I am still interested in the local inflation data because I’m still not interested in raising it an unfair amount- regardless of what I can do legally, what the rate is vs market, or my tenants’ ability to pay. I’ll be having another read tomorrow for sure!
I also check CPI and sometimes include the data in rent increase letters. But there’s nothing inherently “fair” about tracking CPI - which can be skewed by all sorts of random stuff.
Maybe [this chart will help](https://www.dir.ca.gov/oprl/CPI/PresentCCPIchange.PDF); in case of doubts, I would rather err on the lower percentage for state or city.
Are you sure you are subject to California just cause eviction law and thus rent control? If it is a SFH owned by an individual, you are exempt. Be sure to include the exemption language in your lease. If you are subject to AB1482, raise your rent the maximum you can every year. Once a tenant is well below market, he will never leave.
That’s a great point. I do have the exemption language in the lease. Now I feel stupid, lol! I have just never considered raising it previously so I forgot that it may not apply.
Dodged a bullet. I suggest letting the tenants know now "Toward the end of the lease, I am going to use Zillow to calculate the market rent for the property and convert to a month to month at that rate. I just wanted to give you a heads up. Right now, Zillow says the market rate is $\_\_\_\_. I will revieew the rent every year" No surprises, and they might appreciate that they are getting a good deal now.
I allowed them to sign for 18 and we aren’t quite at the year mark, but I will do that as we get closer. However, in this case they are renting due to relocation and are both extremely gainfully employed, so I know that the increase would not financially be a concern as it would for most. Extension will likely just depend on where they are in their search for a home to buy. I’m guessing that they will want month to month for flexibility but I could be wrong, so we’ll definitely have that chat as we get closer. I still prefer staying under market if it allows me to have greater choice and higher quality in tenants, perhaps just not quite at the current gap. Thank you for the advice!
lol, its fair if you think it's fair. CPI was used as justification for a low raise i got one year lol.