Above 5%, tenants can challenge an increase with the town.
The state cap still applies.
Why, and the exact law
From Los Gatos Town Code § 14.80.310, read Oct 4, 2026.Show the law
“Annual Rent Increases shall not exceed the seventy percent
(70%) CPI ceiling or five percent (5%), whichever is greater, unless the Arbitrator
determines that other factors render a larger increase reasonable …”
Newer buildings and many houses follow California's limit instead: 5% plus local inflation, never more than 10% a year. In this part of California that is 8.6% until Jul 31, 2027. Your address tells us which one applies.
State law applies here too. Where both cover a rental, the stricter city rule usually wins; each rule below says so.
Los Gatos lawDepends on the building
Los Gatos Rental Dispute Mediation and Arbitration Ordinance – annual rent increase standard
How much can my rent go up?
Up to 5% a year is presumed valid.
Above 5%, tenants can challenge an increase with the town. The state cap still applies.
Depends on the year the building was built or the number of units.
Who it covers
Buildings with a first certificate of occupancy on or before Feb 1, 1995.
Buildings with 3 or more units.
Covers: Buildings with 3 or more rental units; duplexes are excluded from § 14.80.310 (get only conciliation and a regulatory fee). Limits apply only to current tenants.
Exemptions: First increase after construction of a new unit, a voluntary vacancy, or a court eviction for nonpayment/violation; first increase if last increase was at least 2 years earlier and current one is 10% or less. Single-unit buildings, single houses/condos/planned developments, owner-occupied rooms without kitchen access, hotels, care facilities, government-owned or rent-exempt dwellings, and mobile homes not owned by the park owner are excluded.
In force since
Apr 14, 2004
Enacted
Mar 15, 2004
The law, word for word
“Annual Rent Increases shall not exceed the seventy percent
(70%) CPI ceiling or five percent (5%), whichever is greater, unless the Arbitrator
determines that other factors render a larger increase reasonable …”
Los Gatos Town Code § 14.80.310 · losgatosca.gov · Retrieved Oct 4, 2026
California lawDepends on the building
California Tenant Protection Act rent cap
Can my landlord raise my rent?
For most older rentals, yes: max 5% plus inflation (never over 10%).
The cap follows local inflation (April to April) and resets each August 1.
Depends on the year the building was built.
Who it covers
Not buildings less than 15 years old.
Not owner-occupied buildings with 2 units or fewer.
Covers: Residential real property generally, unless exempt.
Exemptions: Deed-restricted/subsidized affordable housing; dormitories; housing under stricter local rent control; CO issued within previous 15 years; certain separately alienable properties (single-family homes, condos) with non-corporate owners and written notice; owner-occupied duplexes.
In force since
Mar 15, 2019
Current version since
Apr 1, 2024
Set to be repealed
Jan 1, 2030
The law, word for word
“an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower …”