Allowed Rent Increases For 2023/2024 and Security Deposit Interest Information
This information is specifically for the period from October 1, 2023 through September 30, 2024. For 2024/2025, please see the new details on allowed rent increases at this link
There are two major financial controls for rental properties in Pasadena and it is important for you to distinguish which one you are working with.
1) Multi-family rental property (more than 2 dwellings on the parcel) built prior to February 1, 1995. Almost all of these are covered by the rent increases and the just cause provisions of Measure H. (for more details, follow this LINK to the rent control proponents website)
2) Single family properties like a single family home or a townhouse/condominium that has a single assessor parcel number APN and is not obviously an apartment. Or an apartment built AFTER February 2, 1995. These properties are subject to the State of California rent control provisions (AB 1482) and you are typically restricted to a combination of 5% PLUS the local CPI increase with a cap of 10%. Some single family homes are exempt from this but it is important to confirm this with your own attorney. Adam Bray-Ali is not able to provide this service to property owners or tenants.
Assuming you own a property that fits into type 1, an apartment building built before 1995, here are the main rules for 2023-2024:
a) You are limited to one rental increase per 12 month period (see Resolution 3)
b) You are allowed to increase rent by 2.75% from the time period of October 1, 2023 to September 30, 2024 (see Resolution 1)
c) Starting January, 2024, you are obligated to pay your tenant (in a series of prescribed ways) interest on their security deposit funds at the rate of .41% (see Resolution 11). For more information, please see this related article about security deposits in 2023 and what is coming in 2024. https://www.pasadenalandlordguide.com/blog/pasadena-security-deposit-law-2023
d) You should check your records to confirm any rent increases given before May 17, 2021, the date that Measure H was announced and is considered a ‘rollback date’ for purposes of base year rent calculations. Look at the calculations at this page for better information than currently provided by the RHB for details. (Pasadena4rentcontrol page on rent increases)
For Single Family homes, or apartment properties built after February, 1995, the rules from the state of California apply and are well summarized here:
California Attorney General Page on Rent Rules
The website from the Apartment Owners of Greater Los Angeles (AAGLA) have the updated information on what rents are allowed in 2023/2024:
AAGLA Rent increase details for Los Angeles County
notes:
Resolution #1 on rent increases for 2023-2024
Resolution #3 on annual rent increase limits and prior dates
