City of San Jose Rent Control: 5% Cap, Just Cause, and Petitions

San Jose rent control, formally the Apartment Rent Ordinance, caps annual rent increases at 5% and bars landlords from ending a tenancy without a documented legal reason. The rules apply only to apartments in buildings with three or more units that were offered for rent on or before September 7, 1979. If your unit falls outside those criteria, you are likely covered instead by California’s statewide Tenant Protection Act, which works differently. The first thing to figure out is which set of rules applies to you.

Which Buildings Are Covered

San Jose Municipal Code Chapter 17.23 defines a rent-stabilized unit as a rental in a guesthouse or multiple-dwelling building that received its certificate of occupancy on or before September 7, 1979, or was offered for rent by that date. Buildings with only one or two dwelling units are excluded, so single-family homes and duplexes are out. Hotels, motels, hospitals, dormitories, and deed-restricted affordable housing are also excluded.¹

In practice, the ordinance mostly covers older apartment complexes with three or more units. Condos, townhomes, newer construction, duplexes, and single-family rentals do not qualify. That does not leave those tenants unprotected; it just means a different law applies.

The 5% Annual Cap

For a covered unit, a landlord can raise the rent by a maximum of 5% in any 12-month period.² The cap is flat. It does not move with inflation, and only one increase is allowed per year.

Unused increases cannot be banked. If your landlord skips a year, they do not get to stack a 10% jump the next year. Each year stands on its own, which is one of the features that makes the local ordinance stricter than the state law for the tenants it covers.

What Happens When a Tenant Moves Out

The 5% cap applies only while you stay. Once a tenant voluntarily moves out or is lawfully evicted, the landlord can reset the rent to market for the next tenant.² This is vacancy decontrol, and it is why long-term tenants in rent-stabilized San Jose apartments often pay dramatically less than newer neighbors in the same building.

After a new tenant signs at the higher market rate, the 5% cap resumes and governs future increases during that tenancy. If you are weighing a move, that matters: leaving a rent-stabilized apartment usually means re-entering the market at a much higher price, with no guarantee the next unit is even covered.

If Your Unit Isn’t Covered: California’s Tenant Protection Act

Duplexes, single-family homes, and apartments built after 1979 sit outside the local ordinance, but most are protected by California’s Tenant Protection Act (AB 1482). The statewide cap is 5% plus the regional change in the Consumer Price Index, or 10%, whichever is lower. It also requires just cause for eviction once a tenant has lived in the unit at least 12 months.

The state cap is usually higher than San Jose’s flat 5% because it rides with inflation. The state law also has its own exemptions:

Units less than 15 years old, on a rolling basis, so a building constructed in 2012 is currently exempt but will eventually age into coverage.
Owner-occupied duplexes, where the landlord lives in one of the two units.
Most single-family homes, if the owner is not a corporation or real estate investment trust and has provided the required notice.
Deed-restricted affordable housing.

For renters whose San Jose address does not qualify for local stabilization, state law is the backstop. The cap is less protective, but the just-cause eviction rules still bite.

When Rent Can Go Above the Cap: Petitions

The 5% cap is the default, not an absolute. Both landlords and tenants can petition the city’s Rent Stabilization Program to adjust rent beyond what the standard rules allow.

Fair Return Petitions

A landlord who believes the 5% cap prevents a fair return on the property can file a fair return petition. The burden is on the landlord to prove with financial records that the allowed rent is insufficient.³ These are uncommon and require real documentation.

Capital Improvement Passthroughs

Landlords can also petition to pass through the cost of capital improvements, meaning permanent upgrades like a new roof, seismic retrofitting, or replacement plumbing that extend the building’s useful life. The monthly passthrough cannot exceed 3% of the rent being charged when the petition is filed, and the improvement must have been completed within 12 months before filing.⁴ The city treats the passthrough as a separate charge rather than rent, so it does not compound into future 5% calculations.

Tenant Petitions for Rent Reductions

Tenants can petition for a reduction based on decreased housing services or health and safety concerns.⁵ Decreased services covers amenities originally included in the rent, such as laundry, parking, or storage, that are removed or degraded. Health and safety petitions apply when the unit has unresolved habitability problems like leaks, mold, broken heating, or code violations. If you are getting less than what you are paying for, the rent should reflect that.

Required Notice and Disclosures

Before a tenancy begins in a rent-stabilized unit, the landlord must give the tenant written notice that the unit is subject to the Apartment Rent Ordinance and a copy of the city’s current informational notice or handbook. A landlord who violates any provision of Chapter 17.23 faces civil penalties of up to $2,500 per day or $10,000 per violation, and charging rent above the lawful amount is a misdemeanor.⁶

When a landlord raises the rent, California law requires at least 30 days’ written notice for any increase of 10% or less, and at least 90 days’ notice for increases above 10%.⁷ Since San Jose’s cap is 5%, the 30-day rule applies in virtually every covered increase. A notice that misses the timing or content rules is not enforceable, and the tenant can keep paying the old rate until a valid notice is served.

Just Cause for Eviction

San Jose’s Tenant Protection Ordinance requires a landlord to have a documented legal reason before terminating a tenancy. It applies more broadly than the rent cap itself, reaching apartments, guesthouses, and some unpermitted units. A landlord cannot end a tenancy just to replace the tenant or to escape the rent cap.

The at-fault grounds, where the tenant’s own conduct triggers the eviction, include:⁸

Nonpayment of rent after a written notice specifying the amount due and allowing at least three days to pay.
Material or habitual lease violations that are not cured within a reasonable time after written notice.
Substantial damage beyond normal wear and tear that the tenant refuses to pay for or stop causing.
Nuisance conduct that disturbs the peace or safety of other residents and continues after written notice.
Refusing lawful access for inspections or repairs after proper notice.
Refusing to sign a renewal with terms substantially identical to the prior lease.

No-fault grounds allow eviction even when the tenant has done nothing wrong. The most common is an owner move-in, where the landlord or a close family member intends to occupy the unit as a primary residence. No-fault terminations come with relocation obligations.

Relocation Pay for No-Fault Evictions

When a landlord displaces a tenant for a no-fault reason, including owner move-in or an Ellis Act withdrawal that permanently removes units from the rental market, the landlord must pay relocation assistance. For Ellis Act withdrawals, the city sets specific amounts by unit size:⁹

Studio: $9,695 ($6,925 base plus $2,770 for qualifying tenants)
One bedroom: $11,760 ($8,400 base plus $3,360 for qualifying tenants)
Two bedrooms: $14,494 ($10,353 base plus $4,141 for qualifying tenants)
Three bedrooms: $17,380 ($12,414 base plus $4,966 for qualifying tenants)

Tenants are entitled to at least 120 days’ notice before they must vacate under an Ellis Act withdrawal. Residents over 62, those with disabilities, terminally ill tenants, and households with school-aged children may receive an extension up to one year from the date the withdrawal notice was delivered.⁹ Those extensions apply regardless of whether the property is rent-stabilized or newer construction.

The Rent Registry

Owners of rent-stabilized apartments must register their units with the city’s Rent Registry and update the information annually. The registry tracks occupancy status, current rent levels, and the history of increases for every covered unit.¹⁰

The penalty for skipping registration hits where it counts. Apartments not registered by the deadline are ineligible for annual rent increases until registration is complete.¹⁰ A landlord who ignores the registry cannot raise rent at all, even within the 5% cap, until the property is in compliance. If you are not sure whether your unit qualifies for rent stabilization, Rent Registry data is publicly accessible and can confirm whether your building is in the system.

How to Enforce Your Rights

Tenants who believe their landlord has imposed an illegal rent increase, failed to provide required disclosures, or reduced housing services can file a petition with the Rent Stabilization Program.¹¹ The program offers mediation before matters escalate to a formal hearing. Petition forms for both tenants and landlords are available through the San Jose Housing Department.³

A landlord who charges rent above what the ordinance permits is guilty of a misdemeanor and faces civil penalties of up to $10,000 per violation.¹²

1
Municode Library. San Jose Code of Ordinances Chapter 17.23 – Section 17.23.167
2
City of San José. Learn About Rent Stabilization
3
City of San José. Petitions, Exemption Requests and Related Forms
4
Municode Library. San Jose Code of Ordinances Chapter 17.23 – Section 17.23.320
5
City of San José. File A Petition
6
Municode Library. San Jose Code of Ordinances Chapter 17.23 – Section 17.23.500
7
California Legislative Information. California Civil Code 827
8
Municode Library. San Jose Code of Ordinances Chapter 17.23 – Section 17.23.1250
9
City of San José. Ellis Act Ordinance
10
City of San José. Rent Registry
11
City of San José. Solve Landlord/Tenant Disputes
12
Municode Library. San Jose Code of Ordinances Chapter 17.23 – Section 17.23.530