What Is San Leandro's Rent Stabilization Ordinance?
San Leandro's Residential Rent Stabilization Ordinance (RSO) was formally adopted on February 2, 2026, with full enforcement beginning January 1, 2027. It applies to covered residential rental units and introduces annual rent caps, a mandatory rental registry, per-unit program fees, and a rollback provision that could affect rents charged after July 1, 2025.
For multifamily owners in San Leandro, this is an active compliance timeline — not a future concern.
This post is for informational purposes only and does not constitute legal or financial advice. Ordinance details may change — verify current status with the City of San Leandro. Consult a licensed attorney or advisor before taking action.
Key Dates
- July 1, 2025 — Base Rent Date. The benchmark for all future calculations and rollback determinations.
- February 2, 2026 — RSO adopted (Second Reading).
- January 31, 2027 — Updated Rental Registry deadline.
- January 1, 2027 — Full enforcement begins.
How the Rent Cap Works
Annual increases are capped at the lower of 3% or 65% of CPI — approximately 0.9% for FY2025–2026.
Scenario | Amount |
|---|---|
July 1, 2025 Base Rent | $2,000 |
AB 1482 Allowed Increase (6.3%) | $2,126 |
RSO Allowable Increase (~0.9%) | ~$2,018 |
Potential Reset Rent Level (Jan 1, 2027) | ~$2,018 |
Any rent increase issued after July 1, 2025 that exceeds the RSO-allowable rate may be subject to rollback when enforcement begins. Owners should audit all increases issued since that date immediately.
Fees and Penalties
San Leandro has budgeted $2,230,433 for FY27, authorized six full-time rent program staff, and secured a $2,230,500 general fund loan at 3.76%. This program is funded and built for active enforcement.
Annual Program Fees:
- All rental registry units: ~$148/unit
- Rent stabilized units (combined): ~$256/unit
- Fair Return Increase Petition: $472
Late Penalties:
- 0–30 days: 25% | 31–89 days: 50% | 90+ days: 100% of annual per-unit fee
Non-compliance can result in penalties up to $10,000 per violation. Rent increases are only permitted on registered units with fees current.
Fee amounts are based on city-presented materials and subject to final adoption. Verify with the City of San Leandro.
What Owners Should Do Now
- Audit rent increases from July 1, 2025 forward. Any increase above ~0.9% may trigger a rollback.
- Confirm your July 1, 2025 rent levels. This is your RSO baseline.
- Prepare rental registry data. Deadline: January 31, 2027.
- Model your NOI impact. A ~1% annual cap combined with rising insurance, maintenance, and operating costs compresses returns — run the numbers now.
- Prepare Fair Return documentation if the cap prevents a reasonable return on your investment.
What Owners Are Saying
From conversations with local housing providers: many are holding off on capital improvements, owners with below-market rents as of July 2025 feel most exposed, and some are actively engaging in advocacy — including organizing housing provider groups, evaluating city council candidates, and working toward long-term policy adjustments.
To share your position with the city directly:
- Rent Program: [email protected]
- City Clerk: [email protected]
- Mayor/Council: [email protected]
How The R&Z Group Can Help
The R&Z Group specializes in multifamily commercial real estate across the Bay Area, from duplexes to 100+ unit apartment communities. For owners evaluating their position in a rent-regulated market — whether that means holding, repositioning, or executing a 1031 exchange into a stronger-performing asset — The R&Z Group brings financial precision, local market expertise, and a proven transaction track record to every conversation.
Frequently Asked Questions
What is the base rent date under San Leandro's RSO?
July 1, 2025. All rents are measured against this date, and increases issued after that exceeding the RSO-allowable rate may be rolled back on January 1, 2027.
How much can I raise rent on a covered unit?
The increase is capped at the lower of 3% or 65% of CPI — approximately 0.9% for FY2025–2026.
What happens if I miss the registry deadline?
Unregistered units cannot receive lawful rent increases. Late registration triggers tiered penalties, plus potential violations up to $10,000 per unit.
Can I pass through capital improvement costs to tenants?
No. The RSO eliminates capital improvement pass-throughs entirely.
Should I sell my San Leandro multifamily property because of the RSO?
It depends on your current rents relative to the July 2025 baseline, operating costs, and long-term goals. A licensed multifamily broker can help you model the NOI impact and evaluate whether repositioning or a 1031 exchange makes financial sense.
If you're looking to evaluate, sell, or reposition a multifamily property in San Leandro, Oakland, Hayward, San Jose, Redwood City, San Mateo, Burlingame, Daly City, Palo Alto, Menlo Park, Santa Clara, Sunnyvale, Berkeley, or Concord — The R&Z Group is the multifamily real estate broker built for investors who expect results. Whether it's a duplex or a 100-unit apartment complex, we bring local market expertise, financial precision, and a proven track record to every transaction. Contact us today to discuss your multifamily investment goals.
Contact The R&Z Group:
Ray Rodriguez | (650) 405-0743 | Lic# 01999734
Tony Zizzo | (650) 770-8356 | Lic# 01962093
Tyler Gonzales | (650) 855-2861 | Lic# 02247297
Sources: San Leandro Rent Program | City Council Meeting Materials
