Triple whammy. How the City, County and State rules apply in Pasadena.
With the passage of Measure H in 2022, Pasadena property owners are now subject to a trio of jurisdictions to be aware of and stay in line with as you operate your landlord business. The state implemented rent control rules in 2020, the county implemented their own in 2020 Pasadena implemented new rules in 2023 with backdated timing.
This post is not fully complete and there are more complex answers to each property but these are the basic rules to be aware of from the City, County and State
City - For all rental properties (including houses, condominiums, and apartments) you are required to rent to the tenants for as long as they remain in compliance with their lease. You are not allowed to ask a tenant to leave without a complex (and costly) relocation process and if your property was built before 1995 and a multifamily property (including a home with a rental ADU) you are not allowed to increase rents more than the allowed amount which is capped at 3/4 of the inflation rate. In addition, you are required to register your rental with the city of Pasadena and pay an annual fee that is not allowed to be passed to the tenant.
County - If you own property in unincorporated Pasadena, there are a number of different rules that begin in 2020 for Los Angeles County. More information on that specific subset will be written about here in the coming months. In the meantime, the county department of Consumer Affairs has an excellent website to review. For 2023, rent increases are capped at 3% and for 2024, rental increases are capped at 4% for covered buildings.
State - In 2020, the state of California enacted a new statewide law called AB1482 that imposed statewide rental price controls on all properties in the state. The general formula for us in Pasadena to be aware of is that there is a floor of 5% and a cap of 10% on rental increases annually. The formula is to take the local inflation, plus 5% and restrict the top at 10%. In 2023, as I am writing this, the allowed amount is 8.8% The California Apartment Association has a good write up on the AB1482 rules.
If you are considering renting any residential property in Pasadena, it is very important to understand the rules and requirements imposed on you. Being a ‘good landlord’ that keeps your places tidy the rent low may not be the best business decision for you and it is important to consider the long term impacts of these rules that were added since 2019.
