06/02/2026
There’s a quiet number that explains why so many California landlords are exhausted.
The Tenant Protection Act caps your annual rent increase at 5% + CPI with a hard ceiling of 10%. That cap was set in 2019. The expenses on the other side of your ledger? They didn’t read the bill.
What’s NOT capped:
◆ Insurance carriers pulling out of CA, raising premiums on the ones who stayed
◆ Property tax assessments climbing when you do capital improvements
◆ Plumbers, roofers, electricians charging hourly rates well past 5%
◆ Code-required equipment: carbon monoxide detectors, smoke detectors, locking mailboxes, ground fault interrupters
◆ As of 2026: working stoves and refrigerators are now part of the legal definition of habitability itself
Every one of those is the landlord’s responsibility under the implied warranty of habitability — not optional, not negotiable, not capped.
Revenue ceiling at 5% + CPI. Cost floor rising every year. That’s the quiet math problem nobody legislated.
If you’ve owned a California rental 10+ years, there are exit strategies most owners don’t realize they have.
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