Raising rent is a natural part of managing a rental property, but in California—and especially for landlords in South Orange County—it’s important to follow rent control and tenant protection laws. Setting increases incorrectly can result in financial penalties and strained tenant relationships. Here’s what South OC landlords need to know to stay compliant while protecting their rental income.
California Rent Control: AB 1482 (Tenant Protection Act)
Most rental properties in California are governed by the Tenant Protection Act of 2019 (AB 1482), unless exempt. This law limits annual rent increases to 5% of the current rent plus the local Consumer Price Index (CPI), or 10% total—whichever is lower (California Civil Code §1947.12).
Exemptions include:
Units built within the last 15 years
Single-family homes or condos (if owned by individuals, not corporations or REITs, and proper notice of exemption is given)
Owner-occupied duplexes
Rent Control in South Orange County
Unlike Los Angeles, San Francisco, or Berkeley, cities in South Orange County—including Irvine, Laguna Niguel, Mission Viejo, Aliso Viejo, and San Clemente—do not currently have local rent control ordinances. This means landlords in South OC primarily follow the statewide rules under AB 1482.
However, market dynamics in South OC matter. For example:
Irvine and Aliso Viejo rentals remain highly competitive due to proximity to universities, tech jobs, and the Irvine Spectrum business hub.
Coastal areas like Dana Point and San Clemente see strong demand for lifestyle rentals, where tenant turnover can be costly.
This makes it especially important to balance legal compliance with tenant retention strategies to maximize long-term profitability.
Notice Requirements for Rent Increases
30-Day Notice: For increases of 10% or less within a 12-month period.
90-Day Notice: For increases greater than 10% (though rare due to AB 1482 caps).
All notices must be in writing, and electronic notice alone is not sufficient.
Common Mistakes South OC Landlords Make
Miscalculating CPI for Orange County and exceeding AB 1482 caps
Issuing increases without proper written notice
Forgetting to disclose exemptions on leases for single-family homes and condos
Attempting retaliatory increases (illegal under California Civil Code §1942.5)
Best Practices for South Orange County Landlords
Confirm whether your property is exempt from AB 1482
Document CPI calculations and allowable increase amounts
Provide clear, written notices to tenants with effective dates
Align increases with South OC market conditions to minimize vacancy risk
Final Thoughts
For landlords in South Orange County, raising rent is about more than just adjusting numbers—it requires compliance with California law and a deep understanding of local rental market dynamics. Done right, you can grow rental income, retain quality tenants, and avoid costly disputes.
At PMI South OC, we help landlords calculate compliant increases, provide proper notices, and align rent adjustments with the realities of the South Orange County rental market. Our local expertise ensures you stay protected while maximizing your property’s potential.
Call us today to learn more about our expert property management process—or request your FREE rental analysis to see how much your property could earn in today’s South OC market.
