How Much Can You Legally Raise Rent in Riverside, California — and Why You Should

How Much Can You Legally Raise Rent in Riverside, California — and Why You Should

If you’re a mom-and-pop or “accidental” landlord in Riverside or anywhere in the Inland Empire of California, you’ve probably wondered:

“How much can I raise the rent on my property?”

But the more important question is:

          “Should I raise the rent on my property?”

It’s not just a legal question — it’s an ethical and financial one. Keeping rent artificially low can actually harm your investment and your residents.

AB 1482: California’s Rent Control Law

In 2020, California enacted the Tenant Protection Act (AB 1482), which caps annual rent increases on many properties at:

• 5% + local Consumer Price Index (CPI), or 10% total, whichever is lower

• One increase per 12 months

Exemptions and How to Claim Them

You may be exempt from AB 1482 if you own:

1. A single-family home or condo not held by a corporation, REIT, or LLC with a corporate member

2. A home built within the last 15 years

3. A duplex in which you live in one unit and rent the other

Important: If you are exempt, you must disclose that fact in writing to the resident. Without the disclosure, you are considered non-exempt.

To increase the rent on your property, you must provide property written notice to the residents:

• 30 days if the increase is less than 10%

• 90 days if the increase is more than 10%

Consequences of Improper Rent Hikes

Ignoring these rules can lead to:

• Tenant can refuse to pay the increase

• Refunds, penalties, and legal damages

• Court-ordered payment of your residents’ attorney fees

There’s no “I didn’t know” defense — always follow the law.

Why You Should Raise Rent

Many landlords avoid rent increases because they:

• Fear losing a good tenant

• Fear a rent increase will prompt residents to make excessive repair requests

• Perhaps just haven’t thought about the fallout that low rents can cause

• May have been misinformed by a property manager or adviser about the strategy

If any of those situations sounds familiar, it’s time to rethink your approach.

You’re Running a Business

Costs increase every year — insurance, property taxes, vendor labor. If your income doesn’t match those increases, your rental business will falter.

Budget for Maintenance

You should set aside 5%-10% of gross rent annually for repairs and improvements. For homes 20+ years old, make it 15%. And preventive maintenance is crucial to keep small financial problems from becoming big expenses later.

Fair Rent Builds Stability

Charging below-market rents traps your residents in your home. If your plans for the home ever change (you need to sell or perhaps move back into the property), your residents won’t be able to afford to move. You will have conditioned them to end up on the street or in a drastically reduced neighborhood.

That’s not fair to your tenants or even necessary to address your fears. Fair, gradual increases encourage lease renewals and reduce the true profit killer: vacancy. Your residents are not going to move if your rents are close to market value. And frankly, you should want to know when there is a repair required on your home, before it gets out of hand and more expensive.

Ready for a Smarter Rent Strategy?

Treat your property like the business it is. It will repay you in multiples, you’ll have less stress and drama, and you’ll be running a smart and healthy business.

If you have questions about AB 1482 compliance, exemptions, or finding your property’s market rent, call Brian Bean at 951-314-5402.

Don’t be accidental about your future.
Be intentional.

• AB 1482 Compliance

• California Rent Control

• Rental Property Business

• Landlord Maintenance Tips

• Market Rent Strategy

• Riverside Real Estate Advice