January 27th, 2025 at 3:51 pm
For properties rented within the last year, the landlord can, generally speaking, currently charge 10% more than the most recent rent paid before January 7, 2025. The amount may be increased by another 5% if previously unfurnished, but now fully furnished. For properties not rented within the last year, the landlord can generally charge 10% more than 160% of the fair market rent established by the U.S. Department of Housing and Urban Development (HUD) (but see Caveat below). The amount may be increased by another 5% if fully furnished.
The anti-gouging protections apply to rental housing with an initial lease term of one year or less (see PC section 396(j)(10)). Other terms may apply, as well as rent control and local laws. Price gouging is a crime, punishable by one year imprisonment, plus a $10,000 fine.
Caveat: The anti-gouging law says that a landlord cannot increase the “rental price” by more than 10% (PC 396(e)), and that the “rental price” for a property not previously rented is 160% of HUD’s fair market rent (PC 396(j)(11)(B)). However, many news articles, governmental websites, and other sources, seem to say that that landlord can only charge 160% of HUD’s fair market rent, without addressing the additional 10%. To avoid any issues, landlords may want to consider limiting themselves accordingly until March 8, 2025 (unless extended).
Sources: California’s price gouging law is set forth at section 396 of the California Penal Code. More information is available from the California Department of Justice’s Price Gouging FAQs.
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