What is the acceptable rent increase % in San Jose

Question

Two of my tenants lease renewal is coming up and I wanted to get a rough idea as to the general rental increase % in San Jose/Campbell area.  I don't want to loose the tenants as they pay the rent on time.  Appreciate your help.

Drew Sygit · Answer

What does Zillow, Realtor.com and Rent-O-Meter say market rents are?

Mark Vesu · Answer

My 3/1 is below the market but my tenants pay me one to two weeks before the rent is due.  I ended up increasing the rent by 5% and they were ok with that. Thanks for all your feedback.

Morgan Weiss · Answer

For San Jose and Campbell, the "acceptable" increase depends entirely on whether your property is covered by local or state rent control. Since you want to keep these tenants, staying within these legal caps while being slightly below market rate is usually the sweet spot for retention:

• San Jose Apartment Rent Ordinance: If the property was built before September 1979 and has 3+ units, you are capped at a strict 5% annual increase.
• California AB 1482 (Statewide): For most other multi-family properties (and corporate-owned single-family homes) over 15 years old, the current cap through July 31, 2026, is 7.7% in Santa Clara County (5% base + 2.7% CPI).
• Exempt Properties: If you own a single-family home or condo (and aren't a corporation/REIT), you might be exempt from these caps, but you still have to provide the legal disclosure in the lease to technically qualify.

Since you have reliable tenants, many local landlords aim for 3%–5%. This covers rising insurance and tax costs without being high enough to trigger a move-out, especially since San Jose's relocation costs can be a headache if you ever have to move a tenant out for other reasons.

Chad Hale · Answer

@Mark Vesu Depends on several factors:

1) How are your current rents compared to the market

2) What is the condition, location, desirability of your property

3) Your risk tolerance for a vacancy

The SJ/Campbell market is relatively good at the moment.  Last fall was awful. The worst I'd seen in 7 years.

We are generally giving 1-3% increases but every situation needs to be evaluated on its own.

For determining the market rates, you need to watch the comps on Zillow. I mean actual listings, how long they are on the market, number of daily inquiries, rent changes etc.  All of the "estimates" from tools are not sufficient for actual pricing.  For example, Zillow consistently recommends a home I manage to be $6000 / month and it rents for over $20K.  That is not a typo.

Hope this helps.

Caleb Brown · Answer

I would check market rent compared to what you are charging now. Depending on the gap that's how I would adjust rent. You can increase to market or be just below to help retain them.

What is the acceptable rent increase % in San Jose

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