How to Increase Rent Legally in California & Arizona
How Can Landlords Legally Raise Rent in California and Arizona?
Question: How can landlords in California and Arizona raise rent legally without breaking the rules?
Short answer: In California, rent increases are limited by AB 1482 and require proper notice. In Arizona, there are no caps, but notice periods and lease terms apply.
Why It Matters
Raising rent is necessary to cover rising costs, but doing it wrong can cause legal issues and tenant disputes. By following the rules in California and Arizona, you stay compliant, protect your income, and keep good tenant relationships.
Rent Increases in California
Who Is Covered
- The Tenant Protection Act (AB 1482) covers most rentals in California.
- Exempt properties include:
- Homes built within the last 15 years
- Single-family homes or condos (if not owned by a corporation)
- Units already covered by stricter local rent control
How Much You Can Raise Rent
- You can raise rent 5% + local CPI or 10%, whichever is less.
- Example: If CPI is 3%, the cap is 8%. If CPI is 6%, the cap is 10%.
Notice Periods
- 30 days if the increase is 10% or less in 12 months
- 90 days if the increase is more than 10%
Lease Terms
- Rent cannot be raised in the middle of a fixed-term lease unless the lease allows it.
- Many tenants are also protected by just cause eviction rules under AB 1482.
Local Rules
Cities like Los Angeles and San Francisco have stricter rent rules. Always check local ordinances.
Rent Increases in Arizona
No Rent Cap
- Arizona has no statewide limit on rent increases.
- Cities are not allowed to create their own rent control laws.
Notice Periods
- 30 days for month-to-month rentals
- 10 days for week-to-week rentals
- Fixed-term leases: rent cannot be raised mid-lease unless the lease allows it
Good Faith Rules
- You cannot raise rent for retaliatory or discriminatory reasons.
- Even without a cap, it is smart to raise rent based on market data and property costs.
Best Practices for Landlords
- Check state and local rules first
- Give proper written notice with rent amount and start date
- Avoid frequent increases to reduce tenant turnover
- Use market comparisons to justify increases
- Communicate clearly with tenants to keep trust
- Keep records of your decisions for protection
Final Takeaway
- In California, rent increases are capped at 5% + CPI or 10%, with strict notice rules.
- In Arizona, there are no caps, but you must follow notice and lease rules.
By staying compliant, you avoid legal problems and keep your rental business strong.
📞 Need Help Planning a Rent Increase?
Schedule a call with Initial Property Management, your trusted property management and brokerage in Southern California and the Scottsdale/Phoenix area. We’ll review your properties, check coverage under AB 1482, and guide you through compliant rent increases.
This blog is provided by Initial Property Management, a Professional Property Management Company and Brokerage in Southern California and Arizona.