Rent increases in CA cities without price caps: Updated rules and regulations for 2026

While most California cities use strict percentage caps to control housing costs, others do not. In fact, several jurisdictions—including Gardena, Union City, and San Rafael—have deliberately chosen a different approach. Instead of setting a "hard" price limit, they offer a "soft" safety net designed to protect tenants from egregious hikes without freezing rents entirely.

If you live in one of these areas, your landlord may theoretically raise the rent by any amount they choose. However, if that increase exceeds a specific "trigger" threshold (often 5% or 7%), it activates a set of powerful legal tools.

These protections generally fall into two categories:

Mandatory Mediation: A process where the landlord is legally required to meet with you and a neutral third party to justify the increase. While the mediator often cannot force a lower price, the burden of the process alone is often enough to encourage negotiation.

Relocation Assistance: "Pay to Leave" ordinances that require landlords to pay tenants a substantial sum—sometimes tens of thousands of dollars—if the tenant is forced to move due to a significant rent hike or a no-fault eviction.

Below, we detail the specific trigger points and payout rules for cities that rely on these alternative protections in 2026.

Mandatory Mediation (The "Talk It Out" Cities)

Some cities do not limit how much a landlord can raise the rent, but they do limit the process by which they can do it. In these jurisdictions, if a rent increase exceeds a specific percentage, the landlord must participate in a mediation process if the tenant requests it.

While the mediator typically cannot force a binding rent reduction, the process requires the landlord to justify the increase, often leading to a negotiated settlement.

San Rafael

• The Trigger: A rent increase greater than 5% in a 12-month period.
• The Process: Both landlords and tenants can request mediation. Landlords must participate in "good faith," meaning they must attend personally (or send a representative with decision-making power) and cannot harass the tenant.
• The Deadline: Tenants must submit their request within 10 calendar days of receiving the rent increase notice.
• Outcome: Recommendations are non-binding, but if a landlord acts in bad faith, the rent increase may be deemed invalid.

Gardena

• The Trigger: A rent increase exceeding 5%.
• The Process: Landlords must include a notice of the tenant's right to mediation with any increase over 5%.
• The Deadline: Tenants have 10 business days from the receipt of the notice to file a "Request for Mediation" form with the city.
• Outcome: The Mediation Board reviews the request within 30 days. Failure to file on time waives your right to a hearing.

Union City

• The Trigger: A rent increase exceeding 7%, or multiple increases that total more than 7% in a 12-month period.
• The Process: Landlords must provide a "Notice of Availability of Rent Review" with any increase. Participation in mediation is mandatory for the landlord.
• Outcome: The mediator's recommendations are non-binding.

Los Gatos

• The Trigger: Any annual increase exceeding 5% (or 70% of the CPI, whichever is greater) is essentially open to dispute.
• The Process: Increases up to 5% are "presumed valid." If a landlord wants to raise rent above this "reasonable" limit, they must justify it using specific "pass-through" formulas (such as increased maintenance costs or debt service).
• Outcome: Dispute resolution is free for both parties.

Relocation Payments (The "Pay to Leave" Protections)

In these cities, landlords who impose significant rent hikes or evict tenants for "no-fault" reasons (like owner move-ins) may be required to pay substantial relocation fees. This financial penalty acts as a "soft cap," discouraging landlords from raising rents so high that they force tenants out.

Glendale

• The Trigger: If a landlord raises rent by more than 7% (in a non-banked year) and the tenant chooses to vacate rather than pay.
• The Payout: The landlord must pay relocation assistance equal to 3 times the proposed rent (or Fair Market Rent, whichever is greater) plus a $2,000 moving allowance.
• Qualified Tenants: For seniors (70+), disabled tenants, or households with school-aged children, the relocation fee is doubled.

Pomona

• The Trigger: Eviction for any "No-Fault" reason (such as substantial remodeling or the owner moving in).
• The Payout: Landlords must provide financial relocation assistance to displaced tenants.

Voluntary Mediation (The "Good Faith" Cities)

Some jurisdictions have moved away from mandatory requirements, instead offering voluntary programs. While these offer less legal leverage, they remain a resource for resolving disputes without going to court.

Fairfax

• Current Status: Following the voter approval of Measure I in November 2024, Fairfax repealed its mandatory Rent Stabilization and Just Cause ordinances.
• The Rules: Tenancies in Fairfax are now governed by state law (AB 1482).
• Mediation: The Marin County District Attorney’s office offers voluntary mediation for disputes regarding rent, repairs, or deposits. Because this is voluntary, landlords are not legally required to participate, though many do so to avoid litigation.

Key Forms & Deadlines

The protections listed above are rarely automatic. In almost every case, the burden is on the tenant to initiate the process.

• The "10-Day" Rule: In cities like Gardena and San Rafael, the window to request mediation is incredibly short—typically just 10 days from the moment you receive the rent increase notice. If you miss this window, you often forfeit your right to challenge the increase.
• Written Requests Required: Never rely on a phone call. Requests for mediation or relocation assistance should be submitted in writing using the city's specific forms (e.g., Gardena's "Request for Mediation" form).
• Check the Math: For relocation payments in cities like Glendale, the payout is based on the new proposed rent, not your old rent. Ensure the calculation includes the required multipliers (e.g., 3x rent).

What Did We Learn?

The protections described in this guide differ from standard rent control in one critical way: they are rarely automatic.

If you live in a city with a fixed rent cap, an illegal rent increase is void the moment it is written. But in cities with mediation or review boards, the burden is often on you to act.

• Watch Your Deadlines: Most mediation ordinances have a strict statute of limitations. In cities like San Rafael and Gardena, you typically have only 10 days from the receipt of the notice to file your request. If you wait too long, you may forfeit your right to challenge the increase.
• Get it in Writing: If your landlord agrees to a lower increase during mediation, ensure the agreement is written, signed, and filed with the relevant city department.
• Check the "Good Faith" Rules: In many jurisdictions, if a landlord refuses to participate in mandatory mediation, the rent increase itself becomes legally invalid.

By understanding the specific "triggers" in your city, you can turn a notification of a rent hike from a demand into a negotiation.

California rent cap updates for 2025–2026: What tenants need to know

California’s statewide rent caps under AB 1482 have been updated for August 2025–July 2026. Learn the new limits for Los Angeles, San Francisco, San Diego, Riverside, and other counties, based on the April 2025 CPI.

California TodayPat Sharyon | Editor