Allowed rent increases for October 2024 through September 2025
This information is specifically for the period from October 1, 2024 through September 30, 2025. For last year’s information and more context, please see this link
With several minor exceptions, rent increases for October 1, 2024 through September 30, 2025 in Pasadena are limited to 3.0%. (exceptions for single family homes, condominiums and multi-family homes built post-1995 thanks to Costa Hawkins)
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 October 2024 - September 2025:
a) You MUST register your property and pay the annual fee to the Pasadena Rental Housing Board. If you are not registered, you are not allowed to increase rents or demand rental payment - https://www.pasadenalandlordguide.com/blog/rental-registration-september-2024
b) You are limited to one rental increase per 12 month period
c) You are allowed to increase rent by 3.0% from the time period of October 1, 2024 to September 30, 2025
d) 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
e) 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:
