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For Rent sign on Madison and Del Mar (Photo – Rob G.)
The City of Pasadena’s Rent Stabilization Department is committed to keeping both tenants and landlords informed about recent changes in allowable rent increases and registration requirements.
By News Desk
The department has released essential tips and guidelines on the rent increase limit, eligibility requirements, and the Annual General Adjustment (AGA) under the new Pasadena Fair and Equitable Charter Amendment.
Key Points for Tenants and Landlords
- Allowable Rent Increase
The maximum allowable rent increase is capped at 3.0% for existing tenancies, effective from October 1, 2024, to September 30, 2025. This adjustment, known as the Annual General Adjustment (AGA), can only be applied once every 12 months. Rent increases exceeding this limit are not permitted for eligible rental units. - Eligibility
Not all rental units fall under this 3.0% cap. The following units are excluded:- Units constructed after 1995.
- Single-family homes temporarily rented for no more than 12 months in any 36-month period.
- Low-income housing tax credit units owned by non-profits.
- Units owned by government entities, where exempted by regulations.
- Units with shared spaces like bathrooms or kitchens in primary residences.
- Registration Requirement
To implement a rent increase, landlords must register their rental units with the City of Pasadena and pay the Rental Housing Fee. Failure to do so means landlords are ineligible to impose any rent increase on their units. - Notice Requirements
Landlords must provide tenants with a 30-day written notice before any rent increase. This notice should include a General Notice about the Charter Article XVIII to ensure transparency. - No Banking Policy
The department emphasizes a no-banking policy, which means landlords cannot save or accumulate unused rent increases to apply in future years. If a rent increase is not taken by September 30, 2025, it cannot be imposed later.
Detailed guidelines, FAQs, and additional information are available on the Rent Stabilization website.
> For additional questions or assistance with rent stabilization policies, please contact the Rent Stabilization Department at (626) 744-7999 or email rentstabilization@cityofpasadena.net.
So, the maximum allowable rent increase in Pasadena is capped at 3.0% for existing tenancies, effective from October 1, 2024, to September 30, 2025 even though that rent cap is lower than the one for the State of California set forth in AB 1482. AB 1482 calculates the maximum rent increase by adding 5% to the local Consumer Price Index (CPI) for the area where the property is located or 10%, whichever is lowest. The CPI was 2.9 % in August 2024 for Los Angeles County. Those of you living in Pasadena right now are so lucky. Under AB 1482, the rents in So. Pasadena can be increased to 7.9%, almost double the allowable increase in Pasadena. I was a lawyer for FOREVER AND A DAY but I didn’t practice municipal law. I was under the impression that the terms of a local municipal ordinance could not supercede the conflicting terms of a statewide California law. I guess I was wrong.