New Oakland Rent Law Changes Go Into Effect Soon – Everything You Need to Know

New Oakland rent control law changes will soon be going into effect making a significant impact on how property owners and managers handle rent increases in Oakland.

A series of updates around banked rents and rent increase notice requirements were approved by the Oakland City Council on December 17, 2024. These changes to the Rent Adjustment Ordinance require property owners and managers to quickly get up to speed and take swift action or risk losing out on years of banked rents. 

Edrington & Associates is a leading provider of real estate and property management advice to property owners and managers throughout the Bay Area. Today we’ll bring you all the important information you need to know regarding these recent Oakland rent law changes to keep you informed and compliant with the latest developments. 

Understanding Oakland’s Rent Control Laws

The Oakland Rent Adjustment Ordinance is the foundation of rent control laws in the city. Since its adoption in 1983, the ordinance has sought to limit landlords ability to raise rents. Its most powerful mechanism is the annual limit set on rent increases, overseen by the Rent Adjustment Program (RAP). 

The RAP allows a yearly rent increase based on a percentage of the Consumer Price Index (CPI). Effective August 1, 2025, the new annual CPI based rent increase is 0.8%.

In addition, the RAP gives landlords specific justifications for rent increases other than the annual CPI, such as for capital improvements to a residence, or increased housing service costs. 

The RAP has also allowed for banked rent increases: the ability for a landlord to defer, or “bank” untaken annual CPI rent increases, in order to administer a larger rent increase several years down the line. 

The most significant changes property owners and landlords need to be aware of in 2025 are to Oakland’s banked rent rules.

Breaking Down the Upcoming Oakland Rent Law Changes

December’s City Council changes brought significant updates to how landlords can implement rent increases, with special attention to the practice of banking rent. 

These are the three primary changes that landlords need to be aware of:

• A Decrease in the Allowable Number of Banked Rent Increases

  Under the current rules, landlords have been allowed to bank rent increases for up to 10 years. That meant that landlords could hold off on issuing an annual CPI based rent increase for an entire decade, before levying an accumulated rent increase all at once to a tenant. 

  However, as of January 1, 2026, that is set to change. Beginning with the new year, banked rent increases will be limited to only five years, marking a substantial reduction. 

  That means that if you’ve been banking rent increases for more than five years hoping to institute a larger rent increase in the future, you’re likely to lose out on some of those banked years – unless you take action before the deadline. 

• Banked Rents Can No Longer Be Transferred With the Sale of a Property

  In another crucial change to Oakland’s banked rent rules to be aware of in 2025, the Oakland City Council has enacted a change which will prohibit banked rent increases from being transferred to the new owners when a property is sold. 

  This means that selling a property would essentially reset the banked rent increases for the new owner. New owners would only be allowed to increase the rent for current tenants by the current year’s permitted CPI-based amount, wiping out any previously banked rent increases. 

  There is a specific exception to this rule: if the property is transferred to a new owner through an inheritance to relatives including spouses, parents, siblings, children or step children, banked rents would be transferrable (with a maximum of five years bankable). However the transferee would be required to own the property for at least one year for the banked rents to be transferable.

• Owners Must Show a Business Tax Certificate

  Lastly, there is one more significant change coming that impacts Oakland’s rent increase notice law. When issuing a rent increase that includes banked rents, owners will now be required to provide a copy of a current Business Tax Certificate along with the rent increase notice. This also applies if the property owner is increasing the rent based on the Consumer Price Index (CPI).

  In addition, as of April 15, 2025, owners are prohibited from issuing a rent increase if they are delinquent on business taxes as of April 30, 2025. This change was made to ensure landlords stay current on their business taxes before they can raise rents.

These changes will officially go into effect on January 1, 2026, giving property owners a short window of opportunity to implement any banked rent increases in Oakland over five years old before they’re gone.

What Landlords Can Do to Take Advantage of Oakland Banked Rent Rules in 2025

As other communities adopt similar rent increase notices in California, owners and managers will need to adapt – and act quickly – to protect their investments and ensure compliance. 

Here are Edrington & Associates top action tips to take advantage of existing Oakland banked rent rules in 2025, before they change:

• Review Your Banked Rent Status – If you’ve been accumulating banked rents on your property or properties, you should immediately check to see how many you hold on each one. If you have any banked rent increases from more than five years ago, consider implementing them before January 1, 2026, in order to avoid losing them. Edrington & Associates can help you formulate a rent increase strategy to take advantage of banked rents that will no longer be valid in the new year.
• Confirm Your Current Business Tax Certificate – Effective immediately, before you can issue an Oakland rent increase notice, the law requires you to have a current and paid up Business Tax Certificate. If you have any delinquent business taxes as of April 30, 2025, you will not be able to issue a rent increase in Oakland until they are paid.
• Update Your Notice Procedures – When it’s time to issue a rent increase notice, you’ll need to include a copy of your Business Tax Certificate for transparency. Make sure your notice procedures are up to date and compliant with Oakland and California rent increase laws.
  
• Seek Expert Advice – Keeping up to date with Oakland rent control and California rent increase laws can be difficult without proper guidance. Failure to navigate these changes can lead to costly errors and even legal disputes with your tenants. Seeking expert advice can save you many headaches, and ensure you are compliant with Oakland and California rent increase laws.

Edrington & Associates Can Help You Take Advantage of Oakland Banked Rent Rules in 2025

The majority of these changes around rent increases in Oakland don’t go into effect until January 1, 2026. That leaves a narrow window for property owners and landlords to take advantage of Oakland’s banked rent rules in 2025, before the new rules take effect.

At Edrington & Associates, we can help you strategically plan for rent increases, with accurate calculation of prior years’ CPI-based rent increases, while optimizing timing for your tenants. This is crucial to taking advantage of banked rents before the 2026 deadline.

We can also help ensure you are compliant with Oakland and California rent increase notice laws, including obtaining and maintaining your Business Tax Certificate so you can confidently issue rent increases. 

Edrington & Associates is your best source for real estate and property management advice. We know the Bay Area real estate industry in and out, and have an extensive history of helping property owners protect their investments and stay compliant with Oakland and California rent increase laws.

Don’t risk losing out on valuable banked rent increases or chance non-compliance with Oakland rent law changes. Contact Edrington & Associates today to discuss how we can help you maximize your property investments.