San Jose rent control caps annual rent increases at 5% and bars landlords from ending a tenancy without a documented legal reason, but only for apartments in buildings of three or more units that were offered for rent on or before September 7, 1979. If your unit falls outside that window, California’s statewide Tenant Protection Act likely still gives you a rent cap and just cause protection, just on different terms. Sorting out which set of rules governs your apartment is the first thing to do, because everything else follows from that.
Which Apartments Are Covered
San Jose Municipal Code Chapter 17.23 defines a rent stabilized unit as a rental in a guesthouse or multiple-dwelling building that received its certificate of occupancy on or before September 7, 1979, or was offered for rent by that date. Buildings with only one or two dwelling units are excluded, which takes single-family homes and duplexes out of the local ordinance. Hotels, motels, hospitals, dormitories, and deed-restricted affordable housing are also excluded.1Municode Library. San Jose Code of Ordinances Chapter 17.23 – Section 17.23.167
In practice the ordinance covers older apartment complexes. Condos, newer construction, duplexes, and single-family rentals are outside it. That does not leave those tenants unprotected; it just puts them under a different set of rules.
The 5 Percent Annual Cap
For a covered unit, a landlord may raise the rent by no more than 5% in any 12-month period.2City of São José. Learn About Rent Stabilization The cap is a flat number. It does not move with the Consumer Price Index, and only one increase is permitted per year.
Landlords cannot bank unused increases. If a year passes without a raise, that 5% is gone; it does not stack into a 10% jump the next year. Each year stands alone.
What Happens When You Move Out
The cap protects the sitting tenant, not the unit. Once a tenant voluntarily moves out or is lawfully evicted, the landlord can reset the rent to market for the next tenant.3City of San José. Learn About Rent Stabilization This is vacancy decontrol, and it explains why long-term tenants in these buildings often pay far less than neighbors down the hall.
Once the new tenant signs at the higher rate, the 5% cap applies again throughout that tenancy. Leaving a rent-stabilized apartment usually means re-entering the market at a higher price, and the new place may not be covered at all.
If Your Unit Isn’t Covered by the Local Ordinance
Duplexes, single-family rentals, and buildings put up after 1979 fall outside San Jose’s ordinance, but most are still protected by California’s Tenant Protection Act (AB 1482). The state law caps yearly increases at 5% plus the regional change in the Consumer Price Index, or 10%, whichever is lower. It also requires just cause for eviction once a tenant has lived in the unit for at least 12 months.
The state cap fluctuates with inflation and is usually higher than San Jose’s flat 5%. The state law also exempts some categories entirely:
- Units less than 15 years old, on a rolling basis, so a 2012 building is currently exempt but will age into coverage.
- Owner-occupied duplexes, where the landlord lives in one of the two units.
- Most single-family homes, when the owner is not a corporation or real estate investment trust and has given the required notice.
- Deed-restricted affordable housing already limited to low- or moderate-income rents.
For San Jose tenants not covered by the local ordinance, the state law is the backstop. The rent cap is looser, but the eviction protections still matter.
Notice Requirements for a Rent Increase
Before a tenancy starts in a rent-stabilized unit, the landlord must give written notice that the unit is subject to the Apartment Rent Ordinance and provide the city’s current informational notice or handbook. A landlord who violates a provision of Chapter 17.23 faces civil penalties of up to $2,500 per day or $10,000 per violation, and charging rent above what the ordinance allows is a misdemeanor.4Municode Library. San Jose Code of Ordinances Chapter 17.23 – Section 17.23.500
California law requires at least 30 days’ written notice for any increase of 10% or less, and 90 days for anything above 10%.5California Legislative Information. California Civil Code 827 Since the local cap is 5%, the 30-day rule will apply in almost every case here. A notice that fails these timing rules is unenforceable, and the tenant can keep paying the old rate until a proper notice is served.
One other lever on the landlord side: units not registered with the city’s Rent Registry by the deadline are ineligible for any annual rent increase until registration is complete.6City of San José. Rent Registry A landlord who has ignored the registry cannot raise rent at all, even within the 5% cap, until the property is in compliance.
Just Cause Eviction
San Jose’s Tenant Protection Ordinance requires a documented legal reason to end a tenancy. It reaches beyond rent-stabilized apartments to cover many other housing types, including guesthouses and some unpermitted units. A landlord cannot end a tenancy simply because they want a different tenant or want to charge more than the ordinance allows.
At-fault grounds turn on the tenant’s own conduct:7Municode Library. San Jose Code of Ordinances Chapter 17.23 – Section 17.23.1250
- Nonpayment of rent after a written notice with at least three days to pay.
- Material or habitual lease violations that go uncured after written notice.
- Substantial damage beyond normal wear and tear.
- Nuisance conduct that continues after written notice.
- Refusing lawful entry for inspections or repairs after proper notice.
- Refusing to sign a lease renewal with substantially identical terms.
No-fault grounds allow eviction even when the tenant has done nothing wrong. The most common is an owner move-in, where the landlord or a close family member intends to occupy the unit as a primary residence. No-fault evictions trigger relocation assistance.
Relocation Assistance
When a landlord displaces a tenant for a no-fault reason, including owner move-in or an Ellis Act withdrawal that permanently removes units from the rental market, relocation assistance is required. For Ellis Act withdrawals, the city sets amounts by unit size:8City of San José. Ellis Act Ordinance
- Studio: $9,695 ($6,925 base plus $2,770 for qualifying tenants)
- One bedroom: $11,760 ($8,400 base plus $3,360 for qualifying tenants)
- Two bedrooms: $14,494 ($10,353 base plus $4,141 for qualifying tenants)
- Three bedrooms: $17,380 ($12,414 base plus $4,966 for qualifying tenants)
The landlord must deposit relocation fees into an escrow account at a bank with a branch in San Jose when the notice to withdraw is delivered, and pay a separate relocation counseling fee to the city. Tenants are entitled to at least 120 days’ notice before they have to vacate.8City of San José. Ellis Act Ordinance
Certain tenants get more time. Residents over 62, those with disabilities, terminally ill tenants, and households with school-aged children may receive up to a one-year notice extension from the date the withdrawal notice was delivered.8City of San José. Ellis Act Ordinance These extensions apply regardless of whether the property is rent-stabilized or newer.
Petitions to Go Above or Below the Cap
The 5% cap is the default, but either side can ask the Rent Stabilization Program to adjust rent.
Landlord Petitions
A landlord who believes the cap prevents a fair return can file a fair return petition, and bears the burden of proving with financial records that the allowed rent is insufficient.9City of San José. Petitions, Exemption Requests and Related Forms These are uncommon and demand real documentation.
A separate petition allows a passthrough for capital improvements, meaning permanent upgrades like a new roof, seismic retrofitting, or replacement plumbing that extend the building’s useful life. The monthly passthrough cannot exceed 3% of the rent being charged when the petition is filed, and the improvement must have been completed within the previous 12 months.10Municode Library. San Jose Code of Ordinances Chapter 17.23 – Section 17.23.320 The passthrough is treated as a separate charge rather than as rent, so it does not compound into future 5% calculations.
Tenant Petitions
A tenant can petition for a rent reduction based on decreased housing services or health and safety concerns.11City of San José. File A Petition Decreased services covers amenities originally included in the rent, such as laundry, parking, or storage, that have been removed or degraded. Health and safety petitions apply when the unit has unresolved habitability problems like persistent leaks, mold, broken heating, or code violations.
Enforcing Your Rights
A tenant who believes a landlord has imposed an illegal increase, skipped a required disclosure, or reduced housing services can file a petition with the city’s Rent Stabilization Program.12City of San José. Solve Landlord/Tenant Disputes The program offers mediation before a formal hearing, and petition forms for both sides are available through the San Jose Housing Department.9City of San José. Petitions, Exemption Requests and Related Forms
A landlord who charges rent above what the ordinance permits is guilty of a misdemeanor and faces civil penalties of up to $10,000 per violation.13Municode Library. San Jose Code of Ordinances Chapter 17.23 – Section 17.23.530 If you are not sure whether your unit qualifies, the Rent Registry data is publicly accessible and can confirm whether your building is in the system.