Did you know? When a new tenancy begins at a rent stabilized unit, a landlord may set the initial rent for that unit but all future increases must follow the rules under Charter Article XVIII.
Understanding Rents for New Tenancies of Rent Stabilized Units
- Setting the initial rent: Under Section 1809 of Charter Article XVIII, landlords may set the initial rent for a new tenancy without regulation by the Charter, to the extent required by state law.
- What happens after the initial rent is set: Once a new tenancy begins, the initial rent becomes the reference point, or Base Rent, for that tenancy. From that point forward, the landlord may only increase rent in accordance with Charter Article XVIII, including the Annual General Adjustment.
- New tenancy vs. existing tenancy: This provision applies only when a new tenancy begins. It does not apply to rent increases during an existing tenancy, which remain subject to the Annual General Adjustment and the petition process.
- What a landlord cannot do: A landlord may not increase rent beyond the Annual General Adjustment based solely on cost increases, capital improvements, or other circumstances. A landlord may request a rent increase above the Annual General Adjustment by filing a fair‑rate‑of‑return petition with the Rent Stabilization Department.
- Exception during a declared state of emergency: This provision does not apply during a declared state of emergency. Landlords and tenants should consult applicable state and local emergency orders regarding rent restrictions in effect during such a period.
For more information, contact the Rent Stabilization Department at RentStabilization@CityofPasadena.net or (626) 744-7999.