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.
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.
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.
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:
- 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.
- 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.
Wondering If Landlording Still Makes Sense?
The Costa-Hawkins exemption is valuable-but Pasadena's rules keep getting more complex. Let's look at your options.
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