Understanding Rent Control Laws in Major Cities: A Landlord's Survival Guide

By PropsManager Team · Legal & Compliance · Sep 08, 2025

I'll never forget the call I got from a landlord in Brooklyn who'd just raised rent on a stabilized apartment by 15%. He thought the market justified it. The tenant filed a complaint, and within three months he was staring down an overcharge penalty of $23,000—plus legal fees that pushed the total past $35,000. All because he didn't understand one thing: rent control.

If you own rental property (or you're thinking about buying) in cities like New York, Los Angeles, San Francisco, Portland, or any of the growing list of municipalities with rent regulations, you absolutely cannot afford to be ignorant of these laws. They dictate how much you can charge, when you can raise rent, and under what circumstances you can ask a tenant to leave. Period.

This isn't abstract legal theory. This is your cash flow on the line.

What Exactly Is Rent Control?

Let's clear something up right away, because even experienced landlords confuse these terms.

Rent control in its strictest form freezes rent at a specific amount. It's rare these days—mostly limited to a shrinking pool of old apartments in New York City that have been continuously occupied since July 1, 1971.

Rent stabilization is far more common and what most people actually mean when they say "rent control." Under stabilization, your annual rent increase is capped at a percentage set by a local rent board or housing authority. You can raise the rent, just not by whatever you want.

Then there's rent regulation as an umbrella term covering both, plus any local ordinances that limit what landlords can do with pricing and evictions.

Here's why the distinction matters: if you own a rent-controlled unit in NYC, you might be capped at increases of 3.25% for a one-year lease renewal. If you own a rent-stabilized unit, the Rent Guidelines Board sets a different percentage every year—recently it's been between 2% and 5%. Those numbers may sound small, but on a $2,400/month apartment, the difference between a 2% increase ($48/month) and a 5% increase ($120/month) is $864 over a year. Scale that across ten units and you're looking at real money.

Rent Control Laws by Major City

Not all rent control is created equal. The rules vary dramatically from one city to the next, and in some cases, from one neighborhood to the next within the same city. Here's how the major markets stack up.

New York City

NYC has the most complex rent regulation system in the country. Roughly one million apartments are rent-stabilized, and a small number are still under old-style rent control.

• Rent caps: The NYC Rent Guidelines Board votes each year on allowable increases. For 2024-2025, they approved 2.75% for one-year leases and 5.25% for two-year leases.
• Deregulation threshold: Units used to deregulate when rent hit $2,774/month and the tenant's household income exceeded $200,000 for two consecutive years. The Housing Stability and Tenant Protection Act of 2019 eliminated vacancy decontrol entirely.
• Just cause eviction: Required for stabilized units. You need a legitimate reason—non-payment, lease violation, owner move-in, or building demolition.
• Registration: Every stabilized unit must be registered annually with the Division of Housing and Community Renewal (DHCR).

The bottom line in NYC: you cannot reset rent to market rate when a tenant moves out anymore. That single change wiped out billions in potential property value overnight.

Los Angeles

LA's Rent Stabilization Ordinance (RSO) covers roughly 650,000 units built before October 1, 1978.

• Rent caps: Increases are tied to CPI (Consumer Price Index), typically between 3% and 8% annually. The current cap is around 4%.
• Just cause eviction: Required under both the RSO and California's statewide AB 1482 (the Tenant Protection Act of 2019).
• Vacancy decontrol: Still allowed in LA. When a tenant voluntarily vacates, you can reset to market rate. This makes turnover the single biggest opportunity for increasing revenue on stabilized units.
• Relocation assistance: If you evict a tenant for no-fault reasons (like owner move-in), you must pay relocation fees ranging from roughly $8,950 to $22,400 depending on the tenant's age, income, disability status, and length of tenancy.

San Francisco

San Francisco's rent ordinance applies to most units built before June 13, 1979 (about 172,000 units).

• Rent caps: Tied to 60% of the Bay Area CPI increase, typically landing between 1.5% and 3.5% per year.
• Just cause eviction: Absolutely required. SF has 16 enumerated "just causes" for eviction, and the burden of proof is on the landlord.
• Vacancy decontrol: Allowed under the Costa-Hawkins Rental Housing Act, though there have been multiple ballot initiatives to eliminate it. Keep a close eye on this—it could change.
• Capital improvement passthroughs: You can petition to pass through a portion of major capital improvements to tenants, but the process is bureaucratic and can take months.

Portland, Oregon

Oregon became the first state to pass statewide rent control in 2019 (SB 608).

• Rent caps: 7% plus CPI per year for buildings older than 15 years. For 2024, the effective cap is around 10%.
• Just cause eviction: Required after the first year of tenancy.
• Relocation assistance: Landlords must pay one month's rent as relocation assistance for no-fault evictions or rent increases exceeding 10%.

Other Cities to Watch

• Washington, D.C.: Rent increases capped at CPI + 2% for most units (CPI + 5% for units where the landlord doesn't occupy the building).
• Minneapolis/St. Paul: St. Paul passed a 3% cap in 2021 (one of the strictest in the country), though it's been modified with exemptions for new construction.
• Boston/Massachusetts: Rent control was banned statewide by a 1994 ballot measure, but there's growing political momentum to bring it back.

Rent Control Comparison Table: Key Cities at a Glance

Just Cause Eviction: What You Actually Need to Know

This is where landlords get into the most trouble. In a rent-controlled market, you can't just decide not to renew a lease because you want a different tenant or because you want to renovate and charge more.

Just cause eviction laws typically allow removal for:

• Non-payment of rent (the most straightforward)
• Material lease violations (unauthorized occupants, illegal activity, property damage)
• Owner move-in (you or an immediate family member plan to live in the unit)
• Ellis Act withdrawal (removing the unit from the rental market entirely—common in SF)
• Substantial rehabilitation (major renovation that requires the unit to be vacated)

Here's the thing that trips people up: even when you have just cause, the process is heavily regulated. In San Francisco, an owner move-in eviction requires you to actually live in the unit for at least 36 months. Get caught renting it out before that? You're looking at penalties up to $100,000.

In LA, if you Ellis Act a building, you can't re-rent those units for at least five years. And if you do re-rent them, you must offer them to the original tenants at their original rent. Five years. That's not a strategy—that's a commitment.

Vacancy Decontrol: The Hidden Goldmine (Where It Still Exists)

Where vacancy decontrol is allowed, tenant turnover becomes your single best opportunity for revenue growth. Let me show you what this looks like in practice.

Say you've got a two-bedroom in LA that's been rented at $1,450/month to a long-term tenant for twelve years. Market rate for that unit? $2,800/month. When that tenant moves out voluntarily, you can list it at $2,800. That's an additional $16,200 per year in gross revenue from one unit.

Now you understand why some landlords offer cash-for-keys buyouts. Offering a long-term tenant $10,000 to $25,000 to voluntarily vacate can pay for itself within the first year at the reset rent. It sounds aggressive—and it can be ethically murky—but it's legal in most jurisdictions as long as there's no coercion or harassment involved.

In New York, vacancy decontrol no longer exists, so this strategy is off the table entirely. Your stabilized rent is your stabilized rent, whether the tenant has been there for six months or sixty years. This fundamentally changes the investment calculus for NYC properties.

How Rent Control Affects Your Investment Strategy

If you're evaluating a property in a rent-controlled market, you need to underwrite it differently. Here's a checklist:

• Verify the regulatory status of every unit—is it controlled, stabilized, or market rate?
• Pull rent roll history. What are current rents vs. market rents? What's the gap?
• Calculate your maximum allowable increases for the next 5 years based on current cap trends.
• Factor in just cause eviction restrictions when estimating tenant turnover rates.
• Check for vacancy decontrol. Can you reset to market on turnover, or not?
• Research pending legislation. Are new restrictions likely in your market?
• Budget for relocation assistance fees if you plan any no-fault evictions.
• Review capital improvement passthrough rules. Can you recoup renovation costs through rent?

A property that looks like a great deal at a 6% cap rate might actually perform like a 4% deal once you realize half the units are $600 below market with no path to reset rents.

Common Mistakes Landlords Make With Rent Control

I've seen these over and over again. Don't be the landlord who learns these lessons the hard way.

Mistake #1: Ignoring Registration Requirements

In NYC, if you fail to register a rent-stabilized unit with the DHCR, you cannot collect any rent increase—even the legally allowed one. I've seen landlords lose tens of thousands of dollars in increases they were entitled to simply because they didn't file the annual registration form. It takes 15 minutes.

Mistake #2: Raising Rent Without Proper Notice

Most rent-controlled jurisdictions require 30 to 90 days' written notice before a rent increase takes effect. In California, if the increase exceeds 10%, you need 90 days' notice. Miss the notice window and you have to wait until the next cycle.

Mistake #3: Attempting "Constructive Eviction"

Some landlords try to make tenants uncomfortable enough to leave voluntarily—neglecting repairs, turning off services, making excessive noise during renovations. This is illegal, it's called constructive eviction or tenant harassment, and the penalties are severe. In NYC, harassment penalties can reach $10,000 per violation. In SF, they can be even higher.

Mistake #4: Not Tracking Regulatory Changes

Rent control laws change constantly. New ballot measures, new state legislation, new guidance from local rent boards. What was legal last year might not be legal this year. You need a system to stay current.

This is exactly where property management software like PropsManager becomes invaluable. Instead of tracking rent caps, notice periods, and regulatory deadlines manually across dozens of units, you can centralize everything in one dashboard. PropsManager's automated alerts can notify you when rent increase windows open, when registrations are due, and when local regulations change—so nothing falls through the cracks.

Strategies for Thriving Under Rent Control

Rent control doesn't have to be a death sentence for your returns. Smart landlords adapt.

Maximize Allowable Increases Every Year

Sounds obvious, but a surprising number of landlords skip annual increases to keep tenants happy. Over time, this compounds into a massive gap. If you skip a 3% increase on a $2,000/month rent, that's $720 in year one. Skip it five years in a row and you're leaving over $3,800 per year on the table—permanently, since most rent control systems don't let you "catch up."

Invest in Capital Improvements Strategically

Many rent control regimes allow you to pass through a portion of major capital improvements to tenants. In NYC, Individual Apartment Improvements (IAIs) allow you to increase rent based on the cost of improvements (currently 1/168th of the cost for buildings with 35+ units). A $15,000 kitchen renovation could justify a $89/month permanent rent increase.

Focus on Ancillary Revenue

Parking, storage, laundry, pet fees (where allowed), and utility reimbursements aren't always subject to rent control caps. Check your local laws, but in many markets, you can increase non-rent charges more freely.

Use Technology to Stay Compliant and Efficient

Tracking rent control compliance across multiple units is a nightmare with spreadsheets. You need software that's built for it. PropsManager's pricing plans are designed to scale with your portfolio—whether you've got five units in one building or fifty spread across a city. Automated lease tracking, rent roll management, and compliance alerts keep you legal and profitable.

How PropsManager Helps Landlords Navigate Rent Control

Managing rent-controlled properties demands precision. You need to know exactly what you can charge, when you can raise rent, and what documentation to maintain. PropsManager was built with these complexities in mind.

• Automated rent increase calculations based on your local regulatory caps
• Lease expiration tracking with advance notice alerts tied to your jurisdiction's requirements
• Document management for storing registration confirmations, rent increase notices, and tenant communications
• Financial reporting that separates regulated and market-rate unit performance
• Maintenance tracking to document your compliance with habitability requirements—critical in understanding implied warranty of habitability disputes

When you're managing even a handful of rent-controlled units, the paperwork adds up fast. One missed filing or improperly calculated increase can cost more than a year's subscription to a full property management platform.

Explore More PropsManager Resources

Looking for the right property management software? Check out our in-depth guides:

• Compare Property Management Software — See how PropsManager stacks up against Buildium, AppFolio, Rent Manager, and Propertyware.
• Software for Small Landlords — Built for landlords managing 1–50 units without the enterprise price tag.
• AI-Powered Property Management — Discover how automation can save you 5–10 hours per week.
• Solutions for Property Managers — Scale from 50 to 500+ units without scaling your costs.

Frequently Asked Questions

Can a landlord opt out of rent control?

Generally, no. If your property falls under rent control or stabilization based on its age, location, or other criteria, you're subject to it whether you like it or not. The exceptions are properties specifically exempted—typically new construction (built after the ordinance's cutoff date), single-family homes (in some jurisdictions), and owner-occupied buildings with fewer than a certain number of units. In California, AB 1482 exempts single-family homes and condos that aren't owned by corporations, plus buildings less than 15 years old.

What happens if I accidentally charge more than the allowed rent increase?

You'll need to refund the overcharge, often with interest. In NYC, tenants can file overcharge complaints with the DHCR, and they can recover up to six years of overcharges (plus treble damages if the overcharge was willful). In LA, the penalty structure varies but can include fines and mandatory rent rollbacks. This is one reason why automating your rent tracking is so important—a $50/month error across 20 units over three years is $36,000 in potential liability.

Does rent control apply to commercial properties?

In almost all cases, no. Rent control laws are designed to protect residential tenants. Commercial leases are governed by contract law and whatever terms you negotiate. However, some mixed-use buildings may have residential components that fall under rent regulation, so you need to evaluate each unit individually.

How do I find out if my property is rent-controlled?

Contact your local housing authority or rent board. In NYC, you can search the DHCR's online database. In LA, the Housing Department maintains a registry of RSO properties. In SF, the Rent Board has a searchable database. You can also check the property's certificate of occupancy and building permits to determine the year of construction, which is often the key factor. If you're buying a property, always verify regulatory status during due diligence—don't take the seller's word for it.

Is rent control spreading to more cities?

Yes, and the trend is accelerating. Oregon passed statewide rent control in 2019. California passed AB 1482 the same year, covering the entire state. Colorado, Washington, Illinois, and several other states have active campaigns to pass or expand rent regulation. Even in traditionally landlord-friendly states, rising housing costs are creating political pressure for caps. If you manage properties in any urban market, you should be planning for the possibility of future regulation—even if none exists today.

Take Control of Your Rent-Controlled Portfolio

Rent control isn't going away. If anything, it's expanding. The landlords who thrive in regulated markets aren't the ones fighting the system—they're the ones who understand it cold and use every tool at their disposal to stay compliant while maximizing returns.

Whether you're navigating NYC's labyrinthine stabilization rules, taking advantage of vacancy decontrol in LA, or preparing for new regulations in your market, having the right systems in place makes all the difference. Don't manage rent control with sticky notes and spreadsheets when your financial exposure is this significant.

PropsManager gives you the compliance tracking, automated calculations, and portfolio-level visibility you need to manage rent-controlled properties with confidence. Schedule a demo today and see how landlords across the country are turning regulatory complexity into a competitive advantage.

Already dealing with late rent payments or working through lease addendum decisions? We've got you covered there too.