Each year, Pasadena establishes an Annual General Adjustment (AGA) that limits how much rent may be increased for covered rental units. Understanding how the AGA is set can help both tenants and landlords plan and stay informed about allowable rent increases.
🔹What Is the Annual General Adjustment?
The AGA is the maximum allowable rent increase a landlord may apply to a covered rental unit during a given year, unless a higher increase is approved through the department’s petition process. The AGA does not apply automatically each year. Landlords must still follow notice requirements before increasing rent. The AGA effective October 1, 2025, through September 30, 2026, is 2.25%.
🔹How Is the AGA Determined?
The AGA is set annually by the Pasadena Rental Housing Board and is based on factors outlined in Section 1808 of Article XVIII of the Pasadena City Charter, including changes in the Consumer Price Index (CPI). This process is designed to balance rising operating costs for landlords while protecting tenants from excessive rent increases.
🔹What Tenants Should Know
- Rent increases are limited to the AGA unless a landlord has received approval for an additional adjustment.
- Proper written notice is required before any rent increase can take effect.
- Tenants have the right to ask questions or seek assistance if they believe a rent increase exceeds the AGA.
🔹What Landlords Should Know
- Rent increases may not exceed the AGA without approval through a petition.
- Rental units must be registered with the Rent Stabilization Department's Rental Registry within 30 days of any rent change (increase or decrease) taking effect in a covered rental unit.
- For new tenancies, the initial rent may be set at any amount, provided the unit is lawfully exempt from rent caps at the start of the tenancy.
For current AGA rates, notice requirements, or assistance, contact the Pasadena Rent Stabilization Department at RentStabilization@CityofPasadena.net or (626) 744-7999.