In recent years, the cost of living in Pasadena has risen significantly, making it increasingly difficult for many renters to afford housing. With a struggling economy and 17% rent increases in Los Angeles and its surrounding counties, the local council decided to enact rent control in Pasadena, CA.
When surveyed about implementing rent control in Pasadena, 69% of respondents were in favor of it. As a result, the city has implemented new rent control laws to help address this growing issue of unaffordable housing.
As a landlord in Pasadena, it’s crucial to be aware of these important laws and regulations to retain compliance in your rental business.
By the end of this article, you will have a deeper understanding of the new laws for rent control in Pasadena, California, and how they affect you and your rental property.
What Does Rent Control Mean?
Rent control laws are government regulations that limit the amount landlords can charge for rent and dictate the frequency and percentage by which they can increase rent for their tenants.
These laws are enacted to create stability and affordability in the housing market, particularly for low-income and middle-income families. Rent control laws vary by city and state but typically apply to specific types of rental properties and tenancies.
By imposing limits on rent increases and providing a degree of predictability in housing costs, rent control helps to maintain affordability for tenants, especially in areas where the cost of living is high or rapidly rising.
Rent control laws tend to benefit those who are most vulnerable to housing instability and unaffordable rent increases. These include low-income families, senior citizens, people with disabilities, and long-term renters who have lived in their homes for many years.
While landlords need to earn a profit from their real estate investment in Pasadena, it’s also important to recognize the responsibility to provide habitable and fairly priced housing in the community.
Introduction to Rent Control in Pasadena, CA
Pasadena recently enacted new rent control laws on December 22, 2022, known as Resolution No. 9970, in response to the escalating cost of housing.
These new regulations aim to provide more stability and predictability for renters while ensuring that landlords can still earn a reasonable return on their investments.
Rent control in Pasadena is now a vital part of the city’s housing landscape, so both landlords and tenants need to familiarize themselves with these new rules.
Key Provisions of the Rent Control Laws in Pasadena, CA
One of the most critical aspects of rent control in Pasadena is the rent increase notice requirement.
Landlords must provide at least 30 days’ notice before increasing rent. In this notice, landlords must include the following:
- Pasadena Rent Stabilization Ordinance literature
- Information about the tenant’s right to petition the increase (unless already granted by the Pasadena Rental Board)
- Promise that the rent will not increase until the landlord complies with local ordinances and requirements
How Much Can You Increase Rent in Pasadena, CA?
For renters who live in units built before February 1, 1995, their rent will drop to what it was on May 17, 2021. This is independent of how much the rent may have increased between then and now.
So, how much can landlords raise rent in Pasadena with the new rent control laws?
Landlords are limited to a 6% rent increase for tenants who moved into the property before May 17, 2021. For tenants who moved in after this date, the landlords may increase rent from 0.5% to 5%, depending on when the tenant moved in.
Every year, the Pasadena Rental Board announces the amount of the Annual General Adjustment for rent on September 1st.
This adjustment takes effect on October 1st and is equal to 75% of the percentage increase for the Los Angeles-Riverside-Orange County’s Consumer Price Index.
If the Consumer Price Index is negative, the annual adjustment is 0%.
In theory, rent control in Pasadena, CA can assist landlords in knowing exactly how much to charge for rent. They won’t waste time testing the market or pricing their listing too high or too low.
Rent Increase Restrictions for Non-Compliant Landlords
Landlords in Pasadena must adhere to certain conditions under the new rent control laws, or they risk being unable to increase rent.
The restrictions apply if they fail to comply with the Rent Stabilization Ordinance and Rental Board regulations, if their unit is uninhabitable according to California law, or if they do not make necessary repairs as ordered by the Hearing Officer, the Rental Board, or Pasadena.
Can You Evict in an Area With Rent Control?
Yes, landlords still have the right to evict their tenants if they breach their lease.
Even though the rent is now controlled, if a tenant does not pay rent each month, the landlord still has the right to evict them. However, following the local laws and regulations for eviction is crucial.
Evicting a tenant because of the new rent-controlled price is not possible, though. Landlords must wait until the lease is up to decide not to renew it or increase the rent as the new law allows.
Landlord Responsibilities and Best Practices for Rent Control
To stay compliant with rent control in Pasadena, landlords must keep up-to-date with the latest laws and regulations, maintain their rental units in a habitable condition, and communicate with tenants by providing timely notice for rent increases.
One of the most convenient ways to ensure your rental property in Pasadena is always compliant with laws, both old and new, is to work with an experienced Pasadena property management company.
Property Management Company in Pasadena, CA
As one of the leading property management companies in Pasadena, CA, Lotus Property Services stays up to date on new regulations and laws and has systems in place to ensure our owners’ properties stay legally compliant.
Plus, with an expertly trained staff, detailed accounting services, and quick tenant acquisition, Pasadena rental owners maximize their ROI with our property management services – even with the new rent control laws.
Curious to know how much you should be charging with the new rent control in Pasadena? Request a Free Rental Analysis today!