SB 1365: 10% Limit on Rent Increases After a Declared Emergency

What it requires

• After the President, the Governor, or a city or county declares an emergency, don’t advertise, offer, or charge rent more than 10% above the unit’s baseline rent. The limit lasts 30 days, plus any extension of the declaration.
• The baseline is the rent paid, or the last asking rent if the unit was offered within the past year. For a unit not rented or offered in the past year, it is 160% of HUD Fair Market Rent.
• From January 1, 2027, the limit covers rentals of any lease length, including units exempt from AB 1482. Local rent control limits still apply if they’re lower.
• The owner must prove any defense: an increase the tenant agreed to in writing before the declaration, or repairs or additions beyond normal maintenance made in the year before. A longer lease term, added services, or an insurer paying the rent don’t justify a higher price.
• You can’t evict a tenant during the period and re-rent the unit for more than the limit. A violation is a misdemeanor, punishable by up to one year in jail, a $10,000 fine, or both.

Owner checklist

• Check for an active emergency declaration before any rent increase or new listing price
• Keep a record of each unit’s rent and asking price
• Keep invoices and dates for repairs and improvements
• Hold any increase over 10% until the declaration and its extensions end