Rent increases in Los Gatos: the local rules

Each rule below links to the section of the Los Gatos Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Los Gatos's code says

Los Gatos code What Los Gatos's code adds
Annual increase limit	Space rent increases above the CPI rent increase count as supplemental increases and are subject to hearing review. Applies: Mobile home park spaces only. § 14.85.115 · code text Except as provided in this article, any space rent increase after December 6, 1992, that exceeds the CPI rent increase as defined in section 14.85.020 (e) of this article shall be deemed a supplemental rent increase and shall be subject to review under the hearing process. A supplemental increase may not exceed the amount needed to give the owner a fair and reasonable return. Applies: Mobile home park spaces only; the arbitrator sets the supplemental rent increase. § 14.85.250 · code text The arbitrator shall set the amount of any supplemental rent increase in an amount not to exceed that required to provide the owner with a fair and reasonable return.
Units covered	Mobile home spaces. § 14.85.115 · code text Except as provided in this article, any space rent increase after December 6, 1992, that exceeds the CPI rent increase as defined in section 14.85.020 (e) of this article shall be deemed a supplemental rent increase and shall be subject to review under the hearing process.
How often rent can go up	Owners must give at least 90 days' notice of next calendar year's increases, on about the same day each year. Applies: Mobile home park spaces only; does not apply to increases under the specific leases the ordinance identifies. § 14.85.105 · code text The mobile home park owner shall notify all affected tenants of any rent increase scheduled to take place during the following calendar year. All notices shall be given at least ninety (90) days prior to the effective date of the rent raise on or about the same calendar day each year.
Petitions and pass-throughs	The owner may request a supplemental increase if the CPI rent increase does not give a fair and reasonable return. Applies: Mobile home park spaces only. Increases above the CPI rent increase are subject to hearing review. § 14.85.205 · code text It is expected that the CPI rent increase will provide the owner with a fair and reasonable return. However, in the event that the CPI rent increase does not provide the owner with a fair and reasonable return, the owner may request a supplemental rent increase. Capital improvement increases apply only to spaces benefited; operating-expense increases apply only to spaces where the expenses were incurred. Applies: Mobile home park spaces only; supplemental rent increases based on capital improvements or higher operating expenses. § 14.85.250 · code text Rent increases based upon costs of capital improvements shall apply only to those spaces benefited by the capital improvements in accordance with section 14.85.240(a)(5)b. The capital improvement expense is limited to 1/5 of its cost or its annual depreciation, whichever is less. Applies: Mobile home park spaces only; capital improvements costing at least $5,000, counted as operating expenses in a supplemental rent increase review. § 14.85.240 · code text The expense is limited to one-fifth (⅕) of the cost of the capital improvement or the annual depreciation as calculated by generally accepted accounting principles of the capital improvement whichever is less.

Also in Los Gatos's code: Rental and Other Landlord-Tenant Disputes (§ 14.80.030). This page does not summarize it yet.

The California rule underneath

Where Los Gatos's rule above does not cover a situation, state law still applies. For the statewide rule on its own, see California's statewide rent cap.

CA state law The statewide rule underneath
Rent cap right now	8.6% for increases taking effect August 1, 2026 through July 31, 2027 (5% plus 3.6% inflation) Applies: Covered units only. Inflation is the California consumer price index (Department of Industrial Relations), used for counties outside the four metro areas, April to April, as the statute requires; the figure is recomputed every year. Civ. Code § 1947.12(a)(1), (g)
Statewide rent increase cap (AB 1482)	5% plus the change in cost of living, or 10%, whichever is lower, over any 12 months Applies: Covered units only; measured against the lowest rent charged in the prior 12 months. Civ. Code § 1947.12(a)(1)
Number of rent increases	No more than two increases in any 12-month period Civ. Code § 1947.12(a)(2)
Rent cap — new construction exemption	Housing with a certificate of occupancy issued within the previous 15 years is exempt (rolling) Applies: Mobilehomes excepted. Civ. Code § 1947.12(d)(4)
Rent cap — single-family home or condo exemption	A home or condo that can be sold on its own is exempt when the owner is not a REIT, a corporation or an LLC with a corporate member, and the tenant was given the written exemption notice Applies: The same exemption applies to the just-cause rule (§ 1946.2(e)(8)). Civ. Code § 1947.12(d)(5)
Rent cap — owner-occupied duplex exemption	A duplex in one building is exempt when the owner lived in the other unit at the start of the tenancy and still does, unless either unit is an ADU or JADU Civ. Code § 1947.12(d)(6)
New tenancy resets the rent	When no prior tenant remains, the owner may set the initial rent; the cap applies to later increases Civ. Code § 1947.12(b)
Rent cap sunset	§ 1947.12 is repealed on January 1, 2030 unless extended Civ. Code § 1947.12(o)

Who this affects

TenantsLandlordsProperty managers

Frequently asked questions

How much can rent go up in Los Gatos?

State law caps rent increases on covered units at 8.6% for increases taking effect August 1, 2026 through July 31, 2027. Town rule, mobile home park spaces only: owners give at least 90 days' notice of next calendar year's increases.

General information, not legal advice.

Rent increases in Los Gatos

Key points

What Los Gatos's code says

The California rule underneath

Who this affects

Frequently asked questions

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