City of Pasadena Rent Stabilization Department Highlights Allowable Rent Increases and New Regulations for Tenants and Landlords

PASADENA, Calif.- 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. 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.

The Rent Stabilization Department is dedicated to supporting tenants and landlords as they navigate these regulations. 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 [email protected].