High-demand, low-inventory housing markets like San Francisco, Washington, D.C., and New York City have used rent control laws for decades to help manage the market and prohibit landlords from excessively raising rents.
While rent control laws are usually decided and implemented locally, landlords and tenants should be aware of significant changes in 2024 that expanded the scope of certain regulations. If you own or rent property in an area governed by rent control laws, here’s a look at important updates and how they have impacted the rental landscape.
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What Changed in 2024?
Below is a summary of key changes to rent control laws for cities and states. This does not cover all restrictions or requirements as rent control laws are specific for each city and county and extend beyond this list.
If you believe your rental property may be subject to rent caps, “it’s important to look into local regulations,” says Mark S. Martinez, founding attorney of The Law Offices of Mark Martinez in Santa Ana, California.
California Rent Control Laws
California rent control is governed by the Costa Hawkins Act, enacted in 1995, and the Tenant Protection Act of 2019.
In 2024, California made changes to the Tenant Protection Act. “It enables more teeth under the California Civil Code 1946.2 and 1947.12, where there are changes to how much a landlord can increase rent over a certain period,” says Martinez.
— Rent increases are limited to 5% plus the local inflation rate, or a 10% rent increase in 12 months, whichever is less.
— This applies to most residential rental properties with a certificate of occupancy 15 years or older (2009 or prior).
Cities can create more restrictive caps. For example, in Los Angeles, as of Jan. 1, 2025, rent increases on some multifamily properties built on or before Feb. 1, 1995, are limited to 60% of the average consumer price index (CPI) over the previous 12 months, and this can’t exceed a maximum rent increase of 3%, according to the Los Angeles County Rent Stabilization and Tenant Protections Ordinance.
While there are a lot of nuances about who and what property these changes apply to, Martinez says the biggest takeaway is that proper notice must be provided to tenants when it comes time for renewal.
“Landlords need to notify the tenant whether or not they are exempt from the new rent control caps. If not, they need to prove they are within the rent control limit if there’s an increase on the lease renewal,” explains Martinez. They should also include the exemption notice in new rental agreements if they are exempt.
[READ: How Landlords Can Legally Raise Rent.]
New York City Rent Control Laws
New York City enacted rent control laws in the 1920s and has some of the most complex laws surrounding rent stabilization. Currently, the city is protected by two key laws, the Good Cause Eviction Law, passed in 2024, and the Housing Security and Tenant Protection Act, enacted in 2019.
Previously, most rent-stabilized apartments were older housing stock built before 1974. “But now almost the entirety of residential rental housing stock in New York City is covered by some form of rent control after the Good Cause Eviction law,” says Alexander Lycoyannis, partner at Holland & Knight LLP in New York City.
In 2024, that act increased the amount landlords can recoup for individual apartment improvements on a vacant unit. Property owners can now amortize up to $30,000 of repair costs over 15 years or up to $50,000 if the property was registered vacant in 2022, 2023, and 2024 or was previously occupied by a tenant for 25 years or longer.
While this is an increase from the previous cap of $15,000, it still restricts how much a landlord can recoup from improving the unit. For example, if a landlord spent $50,000 to renovate an apartment’s kitchen and bathroom and install new plumbing, they could only add a fraction of that $30,000 to the rent each year to compensate for the improvements.
They also need to provide tenants with an explanation of improvement-related rent increases and provide documentation of the improvement costs.
The Good Cause Eviction Law also saw a few key changes in 2024.
— Landlords are now required to give 30- to 90-day notices to tenants, depending on how long they have occupied the unit.
— Rent-stabilized units must receive a lease renewal option 90 to 150 days prior to the end of a lease or be notified of nonrenewal if the property owner plans to use it for personal use.
— Rent increases cannot go beyond 5% plus the CPI or 10% of the existing rent.
However, it’s important to know that there are still city rental caps to keep track of. “Every year there is a Rent Guidelines Board that meets in June. They have public hearings that ultimately decide what rent increase will be permissible for that year,” says Lycoyannis.
According to the latest rules, leases starting between October 1, 2024, and September 30, 2025, can increase:
— Up to 2.75% increase for a one-year lease
— Up to 5.25% increase for two-year leases
Under rent stabilization, you cannot have a lease beyond two years.
Washington D.C. Rent Control Laws
“Washington, D.C., is one of the most aggressive cities for rent control,” says Darren Nix, CEO of Steadily Insurance Company in Austin, Texas.
— As of 2024, rent is capped at the CPI plus 2%, or an increase of no more than 10% of the previous rent, whichever is less.
— Landlords also need to follow the cumulative two-year cap of 12%.
— The required notice for rental increases is now 60 days instead of 30.
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What to Watch for in 2025 and Beyond
Since rental cap limits are updated annually, landlords should keep an eye out for changes and speak with a professional if they are unsure if they are following the current regulations.
Looking beyond 2025, watch out for new laws implementing vacancy control.
“Vacancy control states that properties that qualify under rent control remain controlled despite a new tenant. So, after a tenant moves out, you still can’t reset the rent to adjust to market rent,” explains Nix.
“California put it on the ballot in 2024 but it failed,” he says. However, Nix feels this issue could show up in future elections and is something that should be monitored, as it would have a major impact on the rental industry.
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How New Rent Control Laws Have Changed the Landscape originally appeared on usnews.com
Correction 03/03/25: A previous version of this story incorrectly named New York City’s tenant protection law.
