San José Rent and Tenant Protection Ordinances
The City of San José enforces two powerful ordinances: the Apartment Rent Ordinance (ARO), which caps rent increases, and the Tenant Protection Ordinance (TPO), which requires Just Cause for eviction. These protections are overseen by the Rent Stabilization Program.
Who is Covered by the Ordinances?
San José's protections are layered, meaning more units have eviction protection than rent caps.
1. Apartment Rent Ordinance (ARO) – Rent Caps
Applies to: Apartment buildings with three or more units that had a Certificate of Occupancy issued before September 7, 1979.
Key Exemptions: Newer buildings (post-1979), single-family homes, and mobile home parks (which have a separate ordinance).
2. Tenant Protection Ordinance (TPO) – Just Cause Eviction
Applies to: Most residential apartment buildings (three or more units, including condos and townhouses) and all unpermitted units (e.g., illegal in-law units, converted garages).
Key Exemptions: Duplexes, single-family homes (unless unpermitted units), and units where the tenant shares a kitchen or bath with the owner (lodgers).
Protection Start: Just Cause protection begins on the first day of tenancy in San José, unlike state law (AB 1482) which requires 12 months.
RENT INCREASE LIMITS (THE 5% CAP)
For ARO-covered units, annual rent increases are fixed at a statutory maximum.
Maximum Allowable Rent Increase
Limit: The maximum allowable rent increase is one 5% increase in any 12-month period.
No Banking: Unlike some other cities, San José does not permit "banking" of unused rent increases.
When Can the Rent Increase Above 5%?
A landlord may only raise the rent above 5% in certain situations, such as:
Vacancy Decontrol: After a tenant voluntarily vacates or is subject to a lawful eviction, the landlord can set a new market rate rent for the next tenant.
Capital Improvements: A landlord can petition the Rent Stabilization Program to pass through costs for specific capital improvements. The monthly amount passed through generally cannot exceed 3% of the monthly rent and is not considered rent for future ARO calculations.
Fair Return: A landlord can petition for a special permanent rent adjustment if they can prove their operating expenses significantly exceed their income, preventing them from receiving a fair return.
Additional Occupants: Landlords can file a joint petition with the tenant to request a 5% rent increase per additional occupant.
Challenging a Rent Increase (Petitions)
If you believe your rent increase is unlawful or that your landlord has reduced your housing services, you can File a Petition with the Rent Stabilization Program.
Service Reductions: If a service (like maintenance or a utility) is reduced without a decrease in rent, it is considered a rent increase. You can petition to have the rent reduced or a credit ordered.
Housing Code Violations: If your unit has health or safety defects (e.g., a Code Enforcement report), you can challenge any rent increase based on the severity of the violations.
Retaliation: It is illegal for a landlord to retaliate (e.g., increase rent, reduce services, threaten eviction) against a tenant for exercising their rights under the Ordinance.
JUST CAUSE EVICTION PROTECTIONS (TPO)
The TPO requires a landlord to state one of 13 Just Cause reasons to evict a tenant in a covered unit.
The 13 Just Cause Reasons for Eviction - The TPO divides reasons into At-Fault (no relocation payment required) and No-Fault (relocation payment required).
At-Fault (8 Reasons): Nonpayment of Rent, Material or Habitual Violation of the Tenancy, Nuisance Behavior, Substantial Damage, Refusal to Agree to a Like or New Rental Agreement, Refusing Access, Criminal Activity.
No-Fault (5 Reasons): Owner Move-In, Substantial Rehabilitation, Ellis Act Removal (withdraw from market), Order to Vacate (Government Order), Vacation of Unpermitted Apartment.
Requirements for Owner Move-In
Ownership: The owner must have at least a 50% ownership interest.
No Vacant Units: The owner must not have another available unit in the building they can move into.
Duration: The owner or qualified relative (spouse, domestic partner, parent, or sibling) must move into the unit within three months and reside there as their principal residence for 36 continuous months (3 years).
Evicting from an Unpermitted Unit: If you are asked to vacate an unpermitted unit (an illegal unit), this is considered a No-Fault eviction, and you are entitled to relocation assistance.
Relocation Assistance and Tenant Rights
Relocation payments are required for all No-Fault evictions (including OMI, Substantial Rehabilitation, Ellis Act, and Vacation of Unpermitted Apartments).
Base Payment: The base payment is determined by the City's Ellis Act Ordinance and is based on the size of the unit.
Additional Qualified Payment: Tenants are entitled to an additional qualified payment if they are a lower-income household or if one or more tenants in the unit is over age 62, disabled, or cares for a K-12 student.
Peregrine Legal Group, PC, represents tenants throughout San Jose County. Contact us to schedule a consultation.
San Jose Rent Ordinance Website: https://www.sanjoseca.gov/your-government/departments-offices/housing/tenants/learn-about-rent-stabilization
Disclaimer: This information is for general knowledge only and is not legal advice. For specific legal issues, you should consult with a qualified attorney or contact the Pasadena Rent Stabilization Department.