Rent control has been a hot topic in California for years, especially with so many cities facing rising housing costs. We know that for renters and property owners in Orange County, understanding how rent control works, or doesn’t work, is essential in navigating the local market.
Because rent regulations can vary from city to city and are often enforced at the local level, owners managing rentals in higher-density areas usually rely on Irvine property management services to stay aligned with disclosure requirements and allowable rent increases, while others turn to property management services for Anaheim, CA to understand city-specific housing programs and tenant protections better.
In this blog post, we’re breaking down the basics of rent control in Orange County and exploring what rent control laws mean for landlords and tenants. Whether you’re investing or managing a property in the area, we believe understanding these rules is key to making informed decisions in the ever-changing Orange County housing market.
If you’re unsure how recent laws affect your rental, a brief conversation can clarify next steps and protect your investment. Owners working with Irvine property management often look for guidance on compliance and long-term planning, while those partnered with an Anaheim property management team or a Huntington Beach management expert may need help navigating city-specific rules and enforcement. Give us a call at (949) 892-1505 or contact us today to learn more.
Key Takeaways
- Rent control policies differ across Orange County, with some cities like Santa Ana enacting local laws, while others, like Irvine, have no rent control.
- California’s statewide rent control laws apply to some properties but allow cities like Irvine to have fewer rent restrictions, enabling higher rent increases.
- Rent control offers tenants stability and protection from rent hikes but can lead to fewer available units and declining property conditions.
- While rent control limits rent increases, it can provide landlords with stable income, lower turnover, and reduced vacancy rates, though older properties may struggle with maintenance costs.
Table of Contents
What is Rent Control?
Rent control is a set of regulations or laws that limit the amount a landlord can increase rent on a residential property. The main goal of rent control is to ensure housing affordability, particularly in areas with high demand and rising rents. By preventing landlords from increasing rents excessively, these laws can help housing stay affordable and accessible.
Rent control can apply to various aspects of rental agreements, including:
- Rent increase limits: Regulations that cap how much a landlord can raise rent each year.
- Rent stabilization: While not the same as rent control, rent stabilization also regulates rent increases but often allows for more gradual adjustments.
- Tenant protections: In some cases, rent control laws also provide protections against eviction without cause or restrictions on how landlords can evict tenants.
It’s important to note that rent control laws vary widely by location. Some cities or counties have strict rent control policies, while others, like many in Orange County, may have no rent control at all.
Rent Control in Orange County — An Overview
Rent control in Orange County is a bit of a patchwork made up of state as well as local regulations. California has enacted some statewide rent control laws (like AB 1482), the rules can vary significantly from city to city. Some cities within Orange County have adopted their own rent control ordinances, while others have opted not to implement any at all. Understanding the local landscape is key for both renters and property owners.
Several cities in Orange County have chosen to enact local rent control measures to help curb rapidly increasing rents and provide protections for tenants. Let’s take a closer look at the cities in Orange County with rent control regulations.
Santa Ana and Rent Control
Santa Ana is one of the few cities in Orange County with an active rent control ordinance. The city’s Rent Control Ordinance limits rent increases to certain rental units built before 1995. Rent increases are regulated annually and must comply with specific guidelines. Santa Ana also has provisions that protect tenants from unfair evictions.
Anaheim and Rent Control
While Anaheim doesn’t have a city-wide rent control law for all properties, it does regulate certain affordable housing units and properties that are part of the city’s rent-stabilized programs. These regulations often apply to older multi-family buildings or those that receive some form of subsidy, limiting the amount landlords can increase rents.
Navigating these requirements can be time-consuming, which is why some owners rely on property management services for Anaheim, CA, to help implement compliant lease terms and stay current with local enforcement.
Fullerton and Rent Control
Fullerton has affordable housing developments that are designed for families, seniors, and the handicapped. The city of Fullerton has agreements with some property owners that restricts the rents to amounts below regular market rates. Tenants must meet income requirements to be considered, and these requirements vary from development to development.
For landlords operating in Fullerton, staying aligned with local housing policies and disclosure rules is essential, and working with Fullerton property management can simplify compliance and reduce risk.
Other Cities in Orange County and Rent Control
Not all Orange County cities approach rent control and tenant protections the same way. Cities like Orange and Westminster also have specific rent control measures in place. However, these ordinances tend to apply to specific types of housing (usually older multi-family units) and may have different rules about rent increases, tenant protections, and allowable evictions.
While some cities in Orange County have rent control regulations, many others do not, including some of the largest and most high-profile cities in the region.
Owners with rentals in centrally located cities often look to Tustin property management services to help balance state regulations with local expectations, particularly as disclosure requirements and fee restrictions continue to evolve.
In smaller coastal communities, landlords may rely on property management services for San Clemente, CA to better understand how tenant protections are enforced.
For higher-value properties in affluent areas where oversight and tenant expectations can be elevated, investing in Newport Beach property management services often requires a more proactive approach. Staying informed and addressing issues early can help landlords reduce risk and maintain long-term investment value.
Irvine and Rent Control
Irvine is one of the most well-known cities in Orange County where rent control does not apply. The city has a relatively modern housing stock and a booming real estate market, making it less likely to adopt rent control measures. Since Irvine’s housing development has primarily been post-1995, most of the rental housing in the city is exempt from state and local rent control ordinances. Rent prices in Irvine tend to be high, driven by demand in this desirable area, and tenants in Irvine have limited protections against sharp rent increases.
Because Irvine has some of the most detailed housing regulations in the county, many landlords invest in Irvine property management services to ensure rent increases, disclosures, and tenant communications remain compliant.
Huntington Beach and Rent Control
Like Irvine, Huntington Beach is another large, popular city in Orange County without rent control regulations. While it has a relatively low number of older buildings that might otherwise be subject to rent control, renters in Huntington Beach face few protections against significant rent hikes. Housing demand in this coastal city continues to push rental prices higher, and without rent control, landlords have more flexibility in adjusting rents.
Laguna Niguel, Newport Beach, and Other Affluent Areas and Rent Control
Other cities with high property values, such as Laguna Niguel and Newport Beach, also do not have rent control laws. These areas cater to higher-income residents and feature a mix of newer housing developments, many of which are exempt from both local and state rent control laws. Because of this, landlords are able to increase rent as they see fit.
Statewide Rent Control Laws
While many cities in Orange County do not have their own rent control ordinances, California’s statewide rent control laws (AB 1482) do apply to certain rental properties throughout the state. This includes many multi-family buildings built before 2005, with some exceptions for newer constructions or certain types of properties, like single-family homes rented by corporate owners or new housing developments.
Under AB 1482, landlords can only increase rent to the published CPI rate + 5%. This number cannot exceed 10%. So, if your area’s CPI is 5.5%, you can only charge 10% not the full 10.5%. However, Irvine rent control and other cities without rent control can still see rent increases higher than those permitted under AB 1482, as long as the building is exempt.
The Impact of Rent Control on Landlords and Tenants in Orange County
We’ve been working in the industry for over 20 years and we’ve seen first hand the positive and negative effects rent control can have on both tenants and landlords alike. In Orange County, where rent control policies vary from city to city, both renters and landlords need to navigate a landscape that offers different protections and restrictions depending on the city and the type of property.
Impact on Tenants
For renters in Orange County, especially those in cities with rent control policies like Santa Ana or Fullerton, these laws can provide critical benefits that help maintain affordability and stability.
Rent control measures can protect tenants from unpredictable rent increases—tenants in rent-controlled properties are generally more secure in terms of knowing how much their rent will increase, which helps them plan their finances better. Rent control offers a measure of long-term stability for tenants who might otherwise struggle with rapidly escalating rent prices in high-demand markets like Orange County.
While rent control offers security, it doesn’t always solve all of renters’ problems. We’ve seen in the past that the quality of housing can decline over time in rent-controlled cities. Because a landlord’s hands are tied in terms of their rental income, they often don’t have the financial flexibility to maintain and upgrade their properties.
Additionally, rent-controlled units may be in short supply in certain areas, meaning that tenants may have limited options when searching for affordable rental properties.
Impact on Landlords
Rent control policies present a unique set of challenges for landlords in Orange County. Rent control laws place limits on how much landlords can raise rent each year. This can lead to frustration for landlords, especially if they’re facing rising property management costs but are unable to adjust the rent accordingly.
Because of this, rent control can reduce profitability for landlords, especially those who own older buildings that require more maintenance and repairs. For those landlords, they may find it difficult to recoup these costs through rent increases.
While landlords often think the worst of rent control regulations, there are some benefits for landlords when these policies are enacted.
First, we’ve seen that rent control can help to create long-term stability by reducing tenant turnover. When rents are capped, tenants are often less likely to move out since their rent remains predictable and affordable, even if rental rates in the market rise. This contributes to lower vacancy rates and reduced marketing and leasing costs.
Although rent control limits the amount landlords can increase rents, it does provide a predictable income stream. This can help landlords plan their finances each year, reducing the uncertainty associated with fluctuating market conditions.
For landlords, rent control can limit profitability, increase costs, and make property management more complex, but it also ensures a more stable and predictable tenant base, potentially reducing turnover and vacancies.
Ultimately, the effectiveness and fairness of rent control depend on how well local governments balance the interests of both tenants and landlords As housing demand continues to rise in Orange County, rent control laws and their impact will remain a critical issue for both parties to consider.
We’re Here to Help You Manage Your OC Rental Property
Rent control and tenant protection laws vary widely by city, making local guidance especially valuable. Landlords in North Orange County often work with Fullerton property management to stay aligned with disclosure and compliance requirements, while owners of coastal rentals rely on Newport Beach property management services to navigate higher oversight and tenant expectations.
For centrally located properties, Tustin property management can help balance state regulations with day-to-day operations, and in cities with active housing programs, Anaheim property management services and San Clemente property management support landlords in keeping leases and policies compliant.
Managing a rental involves a lot of moving parts, and Good Life Property Management believes life should be enjoyed, not spent sweating the small stuff. That’s why we set out to make property management easy. We care about you, your property, and your tenant. And we do it all so you can Live the Good Life.
We serve property owners throughout Orange County with full-service rental management. Schedule a call with our team today to ensure your rental stays protected!
Orange County Rent Control FAQs
Is there rent control in Orange County?
Rent control in Orange County varies by city. Santa Ana and Fullerton have local rent control laws, while many other cities, like Irvine and Huntington Beach, do not.
What is the maximum rent increase in Orange County, CA?
Under California’s statewide rent control (AB 1482), rent increases are capped at 5% of the current rent plus the Consumer Price Index (CPI), with a maximum increase of 10% in any 12-month period.
Does Irvine, CA have rent control?
No, Irvine does not have local rent control. Most of its housing stock is newer, built after 1995, and therefore the properties are exempt from both local and state rent control laws.
Who is exempt from California rent control?
Exempt properties include single-family homes (if owned by an individual landlord), new constructions built after 2005, and certain vacation rentals or luxury units with high rents.
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