Although Gov. Newsom has ended most state-imposed rent caps tied to old wildfires, that doesn’t necessarily mean rent increases over 10% are permissible.
Depending on the location of your property, other states of emergency may be in effect and triggered California’s anti-price gouging statute, Penal Code Section 396. If your property is simultaneously subject to multiple states of emergency with varying start and end dates — a common issue in California — it can be difficult to determine your maximum allowable rent increase.
This is especially true if one emergency expires while another, with a different start date, remains in effect. Such a scenario could reset the base rent to which the 10% cap is applied. Read the newly added Question 19 in CAA’s Q&A on the price gouging law on for an explanation of how the law applies when there are overlapping states of emergency.