Rent control (and related rules often called rent stabilization) limits how much landlords can raise rent or under what conditions they can end a tenancy in certain cities and states. If your property is in a rent-controlled or rent-stabilized area, you must follow those rules or risk fines, lawsuits, or invalid evictions. Knowing the basics helps you avoid illegal increases and evictions that a court could throw out. This article gives an overview of what rent control is, where it commonly exists, and how it can affect rent increases and evictions. For other landlord-tenant rules, see Landlord Legal Compliance; for changing rent at renewal where no rent control applies, see Lease Renewals: Notice, Rent Changes, and When to Offer.
What Is Rent Control?
Rent control and rent stabilization are laws that cap how much you can increase rent—often by a percentage per year or by tying increases to a formula (e.g. inflation). Some laws apply only to buildings of a certain age or size; others cover most rentals in the jurisdiction. In strict rent-control areas, you may also need a valid reason (e.g. nonpayment, owner move-in) to evict or not renew. The details vary widely by city and state. There is no single federal rent control law; it is entirely state and local.
Where Does Rent Control Exist?
Rent control or rent stabilization exists in a number of states and cities—for example, California (statewide rules plus local ordinances), New York (especially New York City and other localities), New Jersey, Oregon, Washington (D.C. and some cities), and various cities in other states. The list changes as new laws pass and courts rule. Some states prohibit local rent control; others allow it only in certain cities. Because the landscape changes, we do not provide a definitive state-by-state list here. Check your state and city (and county, where applicable) to see whether your property is subject to rent control or stabilization. Your state housing agency, city housing department, or a landlord-tenant attorney can give you current, local answers. For general state landlord-tenant rules, see NOLO's state-by-state landlord-tenant charts as a starting point.
How Rent Control Affects Rent Increases
In rent-controlled or rent-stabilized areas, you typically cannot raise rent above the allowed amount or formula. That may be a flat percentage per year, a percentage tied to inflation, or a different rule. Exceptions sometimes exist for major capital improvements or when a unit is vacated (so-called vacancy decontrol), depending on the jurisdiction. If you raise rent in violation of the local law, the increase may be void and you may owe refunds or penalties. Before raising rent, verify whether your property is covered and what the current cap or formula is.
How Rent Control Affects Evictions and Non-Renewals
In some rent-control jurisdictions, you can only evict or refuse to renew for specific reasons (e.g. nonpayment of rent, breach of lease, owner move-in, substantial renovation). "No-cause" terminations may be prohibited or restricted. Notice periods and procedures are often stricter than in non–rent-control areas. If you evict or non-renew without following the local rent-control rules, the court may dismiss your case or the tenant may have defenses or counterclaims. For the general eviction process, see The Eviction Process: What Landlords Need to Know; for your jurisdiction's rent-control eviction rules, consult an attorney or local housing authority.
Check Your Locality
Rent control is complex and location-specific. Laws and court interpretations change. This article is an overview only—it is not legal advice and does not tell you whether your property is subject to rent control or what you may or may not do in your city or state. Always check your state and local laws and, when in doubt, consult an attorney or local housing authority for your situation.
Share
Get property management tips delivered
Free tools, tax updates, and product news — no spam.