Are Single-Family Homes Exempt from Pasadena Rent Control? | The Borges Team

Are Single-Family Homes Exempt from Pasadena Rent Control?

Single-family homes and condos in Pasadena are exempt from local rent CAPS under Costa-Hawkins-meaning you can raise rent to market levels. But here's what most owners miss: you're still subject to Pasadena's just-cause eviction rules, annual registration requirements, and the $238 per-unit fee. And if your single-family home has a rented ADU, the exemption may disappear entirely.

The Exemption That Isn't Really an Exemption

When California's Costa-Hawkins Rental Housing Act passed in 1995, it created a category of properties that local governments couldn't subject to rent caps: single-family homes and condominiums.

Many Pasadena landlords-whether they own Craftsmans in Bungalow Heaven, ranch homes in Hastings Ranch, or condos in Old Town-heard "single-family homes are exempt" and assumed they were free from Measure H entirely.

They were wrong.

Costa-Hawkins only exempts single-family homes from rent control's caps on how much you can raise rent. It doesn't exempt you from:

  • Registration requirements
  • Annual fees ($238 per unit)
  • Just-cause eviction rules
  • Relocation assistance for certain evictions
  • Security deposit interest payments (0.12% for 2025)
  • The Rental Housing Board's oversight

Understanding the difference between "exempt from rent caps" and "exempt from everything" is worth real money.

What Single-Family Home Owners CAN Do

Raise Rent to Market Rate

This is your actual exemption. Unlike owners of pre-1995 multifamily buildings-who are limited to the 2.25% Annual General Adjustment-you can raise rent to whatever the market will bear.

If your tenant is paying $3,200 and comparable homes rent for $4,000, you can issue a rent increase to $4,000 (with proper notice).

Set Initial Rent Freely

When a new tenant moves in, you can set the rent at any level. There's no base rent calculation, no rollback to May 2021 levels, and no caps on what you charge initially.

Increase Rent More Than Once Per Year

Rent-controlled properties can only raise rent annually. Single-family homes have more flexibility, though most landlords stick to annual increases for simplicity and tenant relations.

Planning a rent increase or tenant transition? Let's make sure you're doing it right.
📞 (213) 444-2225

What Single-Family Home Owners CANNOT Do

Evict Without Just Cause

Here's where the exemption stops. Under Measure H, virtually all Pasadena tenants-including those in single-family homes-have just-cause eviction protection after 12 months of tenancy.

You cannot simply choose not to renew a lease because you want a different tenant, don't like the current one, or found someone willing to pay more.

At-Fault Reasons No-Fault Reasons
Non-payment of rent Owner move-in
Lease violation Demolition/substantial renovation
Nuisance behavior Ellis Act withdrawal
Criminal activity Government order (code enforcement)
Refusing access for repairs

Even with a qualifying reason, you must follow proper procedures-and no-fault evictions require relocation assistance.

Skip Registration

Every rental property in Pasadena must register with the Rental Housing Board, including single-family homes. The deadline is October 31st annually, and the fee is $238 per unit.

Registration Consequences

Without registration: You cannot legally raise rent, tenants may withhold rent payments legally, you may face penalties and back-fees, and eviction proceedings can be complicated.

Ignore Relocation Assistance Requirements

If you evict a single-family home tenant for a no-fault reason (owner move-in, Ellis Act, major renovation), you owe relocation assistance.

December 2025 Court Ruling Update

The California Court of Appeal struck down Pasadena's requirement that single-family landlords pay relocation assistance when tenants leave voluntarily after receiving a rent increase above 5%. However, relocation assistance still applies to formal no-fault evictions.

Withhold Security Deposit Interest

Yes, even single-family home landlords must pay interest on security deposits. The 2025 rate is 0.12%, due by January 31st of each year.

For a $4,800 security deposit, that's about $5.76 annually. Small amount, but failure to pay (or provide proper documentation) can create larger legal headaches.

Single-Family Home vs. Multifamily: Side-by-Side Comparison

Requirement Single-Family Home Pre-1995 Multifamily
Rent caps NO (market rate) YES (2.25% AGA)
Just-cause eviction YES YES
Registration required YES YES
Annual fee $238/unit $238/unit
Relocation (no-fault) YES YES
Relocation (rent-driven move-out) NO (struck down Dec 2025) YES
Security deposit interest YES (0.12%) YES (0.12%)
Base rent rollback NO YES (May 17, 2021)

The ADU Exception to the Exception

Here's where single-family home owners often get tripped up.

Your single-family home is exempt from rent caps because it's a single-family home. But the moment you add a rented ADU and rent out both units, you've created a multifamily property.

If your main house was built before February 1, 1995, both units may now be rent-controlled.

Scenario Main House ADU Both Rented? Rent Controlled?
A 1970 2022 No (owner in main) NO
B 1970 2022 Yes YES (both units)
C 2005 2022 Yes NO (just-cause only)

See Does Your Pasadena ADU Have Rent Control? for the complete breakdown.

How the December 2025 Court Ruling Affects SFR Owners

In December 2025, the California Court of Appeal ruled on California Apartment Association v. City of Pasadena, striking down portions of Measure H as preempted by Costa-Hawkins.

What was struck down for single-family/condo landlords:

  1. Relocation assistance for rent-increase-driven move-outs: Pasadena required landlords to pay relocation if tenants left after a rent increase above 5%. The court said this effectively caps rents for Costa-Hawkins-exempt properties, which cities cannot do.
  2. Extra notice requirements for non-payment evictions: Pasadena required additional notices beyond state law. The court ruled this conflicted with state eviction procedures.

What remains in place:

  • Just-cause eviction requirements (these don't conflict with Costa-Hawkins)
  • Relocation assistance for formal no-fault evictions
  • Registration and fee requirements
  • Security deposit interest rules

This ruling is significant for single-family and condo landlords. You now have clearer authority to raise rents without triggering automatic relocation obligations. But just-cause eviction protections remain-you still can't simply choose not to renew a lease.

Compliance Checklist for Single-Family Home Landlords

Use This Checklist to Ensure You're Operating Legally
Annual Requirements
Register with Rental Housing Board by October 31st
Pay $238 registration fee
Pay security deposit interest by January 31st (0.12% for 2025)
Keep registration certificate on file
Before Raising Rent
Confirm property is registered
Provide proper notice (30 days if increase ≤10%, 90 days if >10%)
Document the rent increase in writing
Before Evicting
Confirm you have a qualifying just-cause reason
Consult legal counsel if proceeding with no-fault eviction
Calculate relocation assistance if required
Follow proper notice timelines
If You Have an ADU
Determine whether both units are rented
Check construction dates of both structures
Re-evaluate rent control status if occupancy changes
Have a specific question about your property? I'm happy to help-even if you're not planning to sell.
📞 (213) 444-2225

Frequently Asked Questions

Are single-family homes exempt from Pasadena rent control?
Single-family homes are exempt from rent CAPS-you can raise rent to market rate. However, you must still register, pay the $238 annual fee, comply with just-cause eviction rules, and pay relocation assistance for no-fault evictions.
Do I need to register my single-family rental in Pasadena?
Yes. All rental properties, including Costa-Hawkins-exempt single-family homes and condos, must register annually with the Rental Housing Board. The deadline is October 31st.
Can I evict my tenant in a single-family home without cause?
No. After 12 months of tenancy, all Pasadena tenants have just-cause eviction protection. You need a qualifying reason (non-payment, lease violation, owner move-in, etc.) to evict.
Does the Costa-Hawkins exemption apply to condos?
Yes. Condominiums are exempt from rent caps just like single-family homes. However, just-cause eviction, registration, and other Measure H requirements still apply.
What changed with the December 2025 court ruling?
The court struck down Pasadena's requirement that SFR/condo landlords pay relocation when tenants leave after a >5% rent increase. The court also invalidated extra notice requirements for non-payment evictions. Core Measure H provisions (registration, just-cause, relocation for formal no-fault evictions) remain intact.
If my SFR has an ADU, is it still exempt?
Only if you live in one of the units. If you rent both the main house and the ADU, your property becomes multifamily. If either structure was built before February 1995, rent caps apply to both.
Do I have to pay security deposit interest on my Pasadena single-family rental?
Yes. All Pasadena landlords, including single-family home owners, must pay interest on security deposits. The 2025 rate is 0.12%, due by January 31st of each year.
What happens if I don't register my single-family rental?
Without registration, you cannot legally raise rent, tenants can withhold rent payments, and you may face penalties and complications in eviction proceedings. The $238 fee is a minor cost compared to non-compliance consequences.
JB

Justin Borges

Team Leader, The Borges Real Estate Team | DRE# 01940318

Disclaimer: This article provides general information about Costa-Hawkins exemptions and Pasadena rent control regulations and is not legal advice. Rent control regulations are complex and subject to change-the December 2025 court ruling may affect certain provisions. For advice specific to your property and situation, consult with a qualified real estate attorney or contact the City of Pasadena Rent Stabilization Department directly at (626) 744-7999. Tax and legal situations vary based on individual circumstances.