If you read the fine print, there’s actually a few nuggets that mean this really won’t be as bad as some say it will be, even assuming it goes through..
The proposal is 5% above the inflation rate, which in CA is 2.5%. So that means a total cap of 7.5% per year. That’s a pretty substantial rental price increase per year imho. The main purpose of this bill is to cut down on predatory evictions. The irony to this is this “cap” will end up turning into a guaranteed rental increase floor, which more landlords will probably attempt to raise the rents every year and discourage landlords from long term lease arrangements.
Also, there are rules governing exemptions..
The abridged version: proposed CA state wide law
1. Rent price increases capped to 5% per year above the 2.5% inflation index: total maximum annual rent increase: 7.5%
2. Properties built 15 years and newer exempt
3. Single family homes exempt, unless owned by large corporations
