Please see Rent Increases 101 for 10 questions landlords should consider when implementing a rent increase.
Is there a cap on the amount of a rent increase?
All multi-family properties built before February 1995 are subject to a cap on the amount of a rent increase. Each year, the rent may only increase by the Annual General Adjustment (AGA), calculated at 70% of the percentage change in the regional Consumer Price Index for the 12-month period ending April of each year; provided, however, in no event will the Annual General Adjustment be more than 5% nor less than 1 percent. All other rental units are not subject to a cap. See below for more information.
What is the Annual General Adjustment (AGA)?
2025 AGA: 1.0% - Effective September 1, 2025 - August 31, 2026
2024 AGA: 2.7% - Effective September 1, 2024 - August 31, 2025
2023 AGA: 2.9% - Effective September 1, 2023 - August 31, 2024
2022 AGA: 3.5% - Effective September 1, 2022 - August 31, 2023
2021 AGA: 2.7% - Effective September 1, 2021 - August 31, 2022*
2020 AGA: 1.0% - Effective September 1, 2020 - August 31, 2021*
2019 AGA: 2.8% - Effective September 1, 2019 - August 31, 2020*
*In response to the COVID-19 pandemic, Ordinance 3275(PDF, 8MB) placed a moratorium on rent increases for units subject to rent control. Any rent increase that was to take effect on or after April 22, 2020, was considered null and void. Ordinance 3315(PDF, 338KB) allowed landlords to begin serving tenants with AGA rent increases no sooner than May 1, 2022. For more information on the moratorium, click here.
How often may the rent be increased?
Only one rent increase may be imposed within any 12-month period.
How will I learn about the Annual General Adjustment (AGA) for each year?
By no later than May 31 of each year, staff at the Rent Program will provide that information. The AGA will be effective September 1 of that year through August 31 of the following calendar year.
May rent be increased above the Annual General Adjustment (AGA)?
For multi-family properties built before February 1995, rent may only be increased above the AGA under the following circumstances:
- The landlord has increased the rent less than the AGA in one or more years and has “banked” the unused portion of the AGA. In a subsequent year, this “banked” amount may be imposed on top of the AGA provided the landlord adheres to the “banking” requirements. Serving notice of a rent increase that uses "banked" amounts is not permitted until December 18, 2022. Click here for more information.
- The landlord may petition to increase the rent above the AGA in order to receive a fair rate of return. These petitions will be reviewed by a hearing officer who will issue a binding decision concerning the allowable rent increase. Click here for more information.
May rent be increased if an additional tenant(s) moves into the rental unit?
The City does not generally get involved in the formation of new tenancies. However, any rent increases imposed on existing lawful tenants, including roommates, are subject to our local regulations. See Regulation 20-06(PDF, 1MB) for additional information.
Are there limits on revising the utilities, amenities, or housing services that are included in the rent?
For multi-family rental properties built before 1995, there are limits on making revisions to charges or fees that are included with the rent. This can include, but is not limited to, charges for utilities, parking, storage, and pets. Landlords generally may not increase any such charges or fees, nor may the landlord “unbundle” such charges and fees so that they are no longer included with the rent during the terms of the rental agreement or month-to-month tenancy.
If the tenant signs a new or renewed rental agreement or revised terms for a month-to-month tenancy, and if the landlord unbundles or increases any charges or fees that had been included in the rent and lists them separately, those charges and fees shall be included when calculating the Maximum Allowable Rent. However, if the tenant requests housing services that were not included in an existing rental agreement or month-to-month tenancy, such charges or fees will not be included when calculating the Maximum Allowable Rent.
For details, see Section 6-58.45 of the Rent Ordinance.
Is a landlord required to increase the rent by the full amount of the Annual General Adjustment (AGA)?
For multi-family rental properties built before 1995, a landlord may choose to raise the rent less than the AGA. Any amount of the AGA that is not imposed in one year may be “banked” and used in subsequent years provided the landlord imposes the banked amounts in compliance with all the “banking” limitations.
What should tenants do if they receive a rent increase in excess of the Annual General Adjustment?
A tenant may always request a review of previous or pending rent increase notices by filing a copy of the notice or other documentation along with an RP-100(PDF, 115KB) cover form and Attachment C(PDF, 171KB). Requests for review may also be filed online by creating a tenant Rent Registry account.
Please note that a rent increase in excess of the AGA may be in compliance with the Rent Ordinance if the landlord has "banked" a previous year's AGA and imposes the banked amounts in compliance with all the “banking” limitations.
Are there any requirements for noticing a rent increase that is at or less than the Annual General Adjustment?
All notices of a rent increase, whether the rent increase is equal to or less than the Annual General Adjustment, must be served on the tenant as provided by State law.
Are there limits on rent increases for Partially Regulated units?
State law exempts all properties with a single unit on a legal lot of record (i.e. single-family homes, condominiums, and townhomes) as well as multi-unit properties constructed after February 1, 1995, from Alameda's local Annual General Adjustment. However, a tenant who decides to move out after receiving a rent increase of more than 10% may be entitled to a Permanent Relocation Payment. Landlords, including landlords of all Partially Regulated units, must notify tenants of this right when imposing a rent increase of more than 10%.
Additionally, while exempt from Alameda’s local rent cap, some single-family homes, condominiums, and townhomes that were built more than 15 years ago, as well as multi-unit properties built after February 1995 but more than 15 years ago, may be subject to a statewide rent cap under The California Tenant Protection Act of 2019 (AB 1482). The Alameda City Attorney’s Office has the authority to take enforcement action against a landlord who violates the statewide rent cap. For more information click here.
What is the statewide rent cap under AB 1482?
State law prohibits landlords of units not exempt from AB 1482 from increasing rent by more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower. “Percentage change in the cost of living” means the percentage change from April 1 of the prior year to April 1 of the current year in the regional Consumer Price Index for the region where the residential real property is located, as published by the United States Bureau of Labor Statistics.
The maximum rent increase for units under AB 1482 is currently 6.3% (effective from August 1, 2025 to July 31, 2026)
All fully regulated properties are subject to Alameda's Annual General Adjustment, which will always be lower than the statewide rent cap.
What does it mean to “bank” a rent increase?
Each year, a landlord is entitled to raise the rent by the allowable rent increase amount, also known as the Annual General Adjustment (AGA). Banking means that for a full 12 months a landlord chose not to raise the rent or to raise the rent less than the AGA. Increases that landlords were not permitted to take due to the moratorium on rent increases during the COVID-19 pandemic were likewise banked.
A landlord may increase rent above the AGA in a subsequent year by imposing “banked” amounts, in addition to the current year’s AGA, provided the landlord adheres to the following requirements:
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A landlord must provide the tenant with Banking Addendum Form RP-203(PDF, 289KB) when serving notice of a rent increase that includes "banked" AGA
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A landlord must file with the Rent Program a copy of a rent increase notice that includes "banked" AGA within three calendar days.
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A landlord may not bank more than 8.0 percent.
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A landlord may not impose “banked” AGA in consecutive years.
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A landlord may not impose “banked” AGA more than three times in any one tenancy.
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“Banked” AGA from a prior tenancy cannot be imposed on new tenants; i.e., if a tenant vacates a rental unit and the landlord has banked AGA, the banked AGA may not be imposed on the new tenant.
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“Banked” AGA cannot be transferred to a new owner when a property is sold.
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The option to “bank” a rent increase became effective in September 2019. Therefore, there is no “banking” option for any years prior to September 2019 in which a landlord did not increase the rent.
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Due to the rental protections enacted in response to the COVID-19 pandemic, the earliest a landlord may serve tenants with a rent increase that makes use of "banked" amounts is December 18, 2022. For more information on the rent increase moratorium, click here.
What information concerning the Rent Program needs to be attached to the notice of a rent increase?
Full Regulated Units (Multi-family rental properties built before February 1995) are not required to include any attachments to the rent increase notices when the amount of the increase is equal to or less than the Annual General Adjustment (AGA). A landlord must attach Form RP-203(PDF, 289KB) to any notice of rent increase that exceeds the AGA when the landlord is imposing a “banked” rent increase. A copy of the "banked" rent increase notice and a proof of service(PDF, 140KB) form must also be filed with the Rent Program within three days of service on the tenant.
All rental units must adhere to the following notice requirements, in addition to state law, for a rent increase above 10 percent. A landlord must complete and attach Form RP-209(PDF, 564KB) to a notice of rent increase of more than 10 percent. Such notices must also be filed with the Rent Program within three days of serving a tenant with such increase.
While not required, the Rent Program strongly recommends that landlords use Form RP-210(PDF, 347KB) to notify a tenant of the Annual General Adjustment, an additional banked rent increase, and/or any authorized pass throughs.
I received a letter from the Rent Program with the subject "Determination of Maximum Allowable Rent." What is this letter?
The Rent Ordinance requires the Rent Program to notify all landlords and tenants of fully regulated units of the Maximum Allowable Rent, or MAR, on an annual basis. The purpose of the letter is informational. It is intended to advise tenants of their rights and the restrictions landlords must follow when raising rent.
If a landlord has failed to register the property or pay the annual program fee, the landlord and tenant will instead receive notification that the landlord is not in compliance and may not implement the Annual General Adjustment (AGA) until the issue is resolved. Once the landlord is in compliance, the landlord and tenant will receive the annual MAR determination.
What is the MAR?
The Ordinance establishes the “base rent” as the rent charged as of September 1, 2019, or the rent charged on the first date of tenancy if the tenancy starts after September 1, 2019. The MAR is the “base rent” increased each year by the AGA, calculated based on compound addition.
- Example 1: A tenancy began in 2018. As of September 1, 2019, the tenant was paying $2,000 per month. The MAR would be calculated as follows based on the each year's AGA:
- $2,000 increased by 2.8% (for September 2019-August 2020) = $2,056
- $2,056 increased by 1.0% (for September 2020-August 2021) = $2,076.56
- $2,076.56 increased by 2.7% (for September 2021-August 2022) = $2,132.63
- $2,132.63 increased by 3.5% (for September 2022-August 2023) = $2,207.27
- $2,207.27 increased by 2.9% (for September 2023-August 2024) = $2,271.28
- And so on
- Example 2: A tenancy was established on June 1, 2021, with a monthly rent of $2,000. The landlord would first be eligible to raise the rent on June 1, 2022. The MAR would be calculated as follows based on each year's AGA:
- $2,000 increased by 2.7% (for September 2021-August 2022) = $2,054
- $2,054 increased by 3.5% (for September 2022-August 2023) = $2,125.89
- $2,125.89 increased by 2.9% (for September 2023-August 2024) = $2,187.54
- And so on
By definition, a tenant's rent may not exceed the MAR. If a tenant's monthly rent is more than the MAR, that is an indication something is wrong and the tenant should contact Rent Program staff.
Landlords may gauge how much, if any, they have "banked" by comparing the current rent to the MAR.
May a landlord increase a tenant's rent to the MAR with the next rent annual rent increase?
Not necessarily! The Maximum Allowable Rent as calculated above and the maximum rent increase allowed by the Rent Ordinance may not be one and the same. Imposing a rent increase in excess of the current AGA requires following all of the Rent Ordinance's "banking" limitations. As a result, landlords are prevented from increasing rent to (a) to a rent that exceeds the MAR as determined by the Rent Program or (b) by a percentage that exceeds the current year’s AGA plus 3.0%, whichever, i.e., (a) or (b), is smaller. See Rent Increases 101 for more information.
What do I do if I think the MAR or other information in the annual letter is incorrect?
Tenants may 1) request that program staff conduct a review of determination of MAR or 2) contest the base rent and/or the housing services included with the base rent that the landlord reported when registering the rental unit. To request this review, tenants should file a RP-100(PDF, 115KB) cover form along with Attachment B(PDF, 106KB) and supportive documentation. Requests for review may also be filed online by creating a tenant Rent Registry account.
Landlords have the right to request review of the determination of MAR by filing Form RP-200(PDF, 108KB) or logging on to their Rent Registry account.
What should tenants do if their monthly rent is more than the MAR?
By definition, a tenant's rent may not exceed the MAR. A tenant may request a review by filing a copy of the most recent rent increase notice along with an RP-100(PDF, 115KB) cover form and Attachment C(PDF, 171KB). Requests for review may also be filed online by creating a tenant Rent Registry account.
How does a landlord petition for an upward adjustment in the Maximum Allowable Rent?
A landlord may petition for an upward adjustment in the Maximum Allowable Rent if the landlord believes an increase is necessary to provide a fair rate of return. (Click here(PDF, 112KB) for more information on fair rate of return.) The landlord has the burden of proof and may provide any documentation or evidence the landlord believes supports the petition along with a completed RP-200(PDF, 108KB) cover form and Attachment A(PDF, 132KB). Petitions may also be submitted online by logging on to a Rent Registry account. Hearing officers hear petitions and issue binding decisions.
On the petition form, what does Base Rent Year mean?
The Base Rent Year is calendar year 2015, the calendar year before the City first adopted comprehensive rent control regulations. It is presumed that the net operating income received by the landlord in the Base Rent Year provided the landlord with a fair return on property. (Please note that Base Rent Year when petitioning for a rent adjustment is not related to the concept of "base rent" when registering a rental unit.)
How does a tenant petition for a reduction in rent?
A tenant may petition for a downward rent adjustment based on a reduction in housing services, living space, or amenities; a substantial deterioration of the rental unit; and/or the landlord’s failure to comply with housing, health, and safety codes or the City’s rent regulations. To file a petition for a downward rent adjustment, the tenant should file an RP-100(PDF, 115KB) cover form along with Attachment A(PDF, 132KB) . Petitions may also be submitted online by creating a Rent Registry tenant account. The tenant has the burden of proof and must provide documentation or other evidence to support their petition. A Hearing Officers will hear the petition and issue a binding decision.
How does the petition process work?
Rent Program staff do not consider the merits of a petition, only that the petition is based on allowable grounds for a rent adjustment and includes all required information and documentation. Once the Rent Program accepts a petition, the Rent Ordinance requires that a hearing take place within 30 calendar days. Rent Program staff will advise both parties that a hearing has been scheduled and provide a deadline for them to submit additional supportive documentation.
Hearings are typically conducted remotely by Zoom. If necessary, public computers are available at the Rent Program’s offices. Hearings can vary in length but typically last a few hours. Hearings are administrative and not governed by technical rules of evidence used in court. A hearing officer typically asks both sides to present their case, allows cross examination, and may ask clarifying questions. Either party may bring witnesses and/or an advocate.
Once the hearing is closed, the hearing officer has 30 days to make a determination, based on a preponderance of evidence, whether there should be an upward or downward adjustment of rent.
Can I reschedule my hearing?
The Rent Ordinance gives hearing officers the discretion to hold a hearing after the 30-day deadline, but only if both parties agree.
How do I contact the hearing officer?
Neither party should contact the hearing officer directly. All communication should go through Rent Program staff.
I don’t agree with the hearing officer’s decision. How do I challenge it?
A hearing officer’s decision is binding and final unless judicial review is sought within 60 days of the date of the decision. Rent Program staff cannot provide legal guidance about how to seek judicial review. Parties should consult with a legal service provider. If a party does seek judicial review, they shall immediately serve the Rent Program Administrator with the judicial filing.