On January 1, 2027, the rent on most older San Leandro apartments becomes a calculation tied to a date that has already passed. Under the city's new Residential Rent Stabilization Ordinance, a covered unit can't charge more than the rent it had on July 1, 2025 plus the increases the ordinance allows. Anything above that line has to come down on New Year's Day.
So the rent roll in a listing package this fall can describe income the building won't be allowed to collect three months from now. An investor closing on a duplex, triplex or fourplex in San Leandro before year-end isn't underwriting the rent roll in the offering memorandum. The figure that counts is what each unit was charging on July 1, 2025.
"Beginning January 1, 2027, a rental property owner may not charge rent that is greater than the July 1, 2025 base rent plus the allowable increase. If the current rent is higher than that maximum, the rental property owner must reduce the rent to the maximum allowable amount effective January 1, 2027."
That is the City's own wording in its Rent Program FAQ, updated September 17, 2026.
Two legal ceilings, eighteen months apart
The rollback comes from two different rules covering the same months. Until January 1, 2027, rent increases in San Leandro fall under state law alone, meaning the California Tenant Protection Act, AB 1482. AB 1482 allows 5% plus the regional change in the cost of living, up to 10%. For Alameda County, the California Attorney General puts the cap at 6.3% for increases between August 1, 2025 and July 31, 2026, and 8.8% for increases from August 1, 2026 through July 31, 2027. Those caps come from the Bay Area's April CPI, which the Bureau of Labor Statistics reported at 1.3% in April 2025 and 3.8% in April 2026.
San Leandro's ordinance runs on the same CPI with a much smaller multiplier. Covered units can go up each year by 65% of the April CPI change or 3%, whichever is lower. In its May 2026 FAQ, the City converted that into a single number for the starting date. On January 1, 2027, covered rents can sit up to 3.3% above the July 1, 2025 base, made up of 0.8% for 2025 and 2.5% for 2026. The September FAQ restates the formula without repeating the 3.3%. It says the City will publish the January 1 figure before the ordinance takes effect. Watch for that notice before closing.
An owner who took the full state increase since mid-2025 did nothing wrong. Those increases were legal when they were made. They still won't carry past December 31.
What the rollback does to one unit
Take a hypothetical unit renting for $2,000 on July 1, 2025, and apply the published caps.
| Scenario | Rent today | Max legal rent on Jan 1, 2027 | Monthly change |
|---|---|---|---|
| No increase since July 2025 | $2,000 | $2,066 | Up to +$66 |
| One full AB 1482 raise in Aug 2025 | $2,126 | $2,066 | −$60 |
| Full AB 1482 raises in Aug 2025 and Aug 2026 | $2,313 | $2,066 | −$247 |
In the last row the unit loses about $2,964 a year. Across a fourplex where every unit got the same treatment, that's close to $11,900 a year in gross rent the pro forma counted on and the building can't collect. The owner who raised rents most often has the rent roll that looks best on paper, and the most income to give back.
In a market this competitive, that gap matters. In August 2026, San Leandro's median sale price across all home types was about $849,000, the median time on market was 15 days, and homes sold at an average of 105.9% of list price. At those numbers, a buyer who pays over asking based on today's rents can find the overbid has bought income that ends in January. For more on how this market has been moving, see our San Leandro market snapshot.
Which buildings carry the rollback
The City says most multifamily housing with a certificate of occupancy issued on or before February 1, 1995 is covered. The exemptions that come up most often in small investor deals:
- Units with a certificate of occupancy issued after February 1, 1995
- Units that can be sold separately, which includes most single-family homes and condominiums, regardless of when they were built
- Accessory dwelling units
- Duplexes where the owner lives in one unit as a primary residence, which the City calls Golden Duplexes
- Units the owner lives in and shares a kitchen or bathroom with tenants
The Golden Duplex exemption matters for house-hackers. A pre-1995 duplex can carry the cap when an investor owns it and drop out of it when an owner-occupant moves into one side. Exempt from the cap still doesn't mean exempt from the city, though. Rented single-family homes and other units outside the cap still have to register, unless they fall under a registry exemption. Rented single-family homes also need a City business license, which was already required before the ordinance.
The registry controls every future increase
The companion Rental Registry Ordinance opens for registration December 1, 2026, and the first annual filing is due January 31, 2027. The City moved that deadline from July 31, 2026 through Ordinance 2026-002, adopted May 4, 2026. The fee is $149 per unit each year, plus $109 per unit for rent-stabilized units, so $258 total. Owners can't pass any part of it to tenants, and late filings draw escalating penalties of up to 150% of the fees.
The fee is the small part. Under the ordinance, an owner can't raise rent at all, including through a Fair Return increase, unless the unit is registered and current on every fee and penalty. The registration form asks for the date the current owner bought the property, the rent at the start of the current tenancy if known, and the July 1, 2025 base rent for stabilized units. If you close in November, you'll be the one filing in January, and you'll need numbers from a period before you owned the building. The City has hired Tolemi to run the registry software, and some registry data will be public with personal details removed.
Three more rules shape the numbers once you own the building:
- One increase per 12 months. The City says a covered unit can be raised once a year at most.
- No banking. Each year's allowable increase has to be taken between July 1 and June 30. If you skip it, it's gone for the rest of that tenancy.
- Vacancy decontrol. When a tenant leaves voluntarily or is legally evicted, rent for the next tenant can be set without restriction. If the prior tenancy ended on grounds the law doesn't allow, the new rent is held to the old maximum.
Vacancy decontrol is the only way a unit's rent gets reset. That puts the value of a covered building in how long its tenants have been there and what they were paying in mid-2025, more than in its current rent levels. A unit that turned over in 2026 at a market-rate rent can be the cleanest line on the roll, if the move-out was voluntary and documented.
Enforcement isn't a slap on the wrist. A tenant can use an owner's noncompliance as a defense in an eviction case, an owner can be liable for up to three times the tenant's actual damages, and the City can impose administrative penalties of up to $500 per violation per day.
What to ask for before you remove contingencies
This is the paperwork to request during escrow on a pre-1995 San Leandro building. It's not legal advice, and your own attorney should review the ordinance against your specific deal.
- The certificate of occupancy date, which shows whether the building is covered at all.
- The rent each unit charged on July 1, 2025, backed by leases or ledgers, not just the current rent roll.
- Every increase since then, with dates and amounts, so you can calculate each unit's January 1, 2027 maximum.
- Move-out records for any unit that turned over, showing how each tenancy ended.
- Tenant estoppel certificates that confirm the current rent and the start date of each tenancy.
- Proof of a City business license, plus an agreement on which party handles the December registration if closing lands in that window.
Then re-run your numbers at the January maximum. For guidance on making that recalculation part of your offer, see our buyer resources.
For owners selling this fall
Sellers of covered buildings are holding the same records buyers will ask for. Pulling together July 1, 2025 rents, increase notices and tenancy start dates before listing shortens the questions buyers raise during escrow. A rent roll that already shows the January 2027 maximum next to current rent gets ahead of the repricing most buyers will do once they look closely. Our seller guide covers how we prepare that documentation. More local context is on our San Leandro neighborhood page.
Quick answers
When did this become law? The City Council adopted Ordinance No. 2026-001 on February 2, 2026, by a 6–1 vote. Mayor Juan González cast the only no vote. Councilmember Boldt had introduced it on January 12. The East Bay Rental Housing Association reported the mayor's opposition in a February 3 commentary.
Can a landlord get above the cap? Yes, through a Fair Return Petition decided by a third-party hearing officer. The owner has to notify tenants in writing and hold a meeting at least 30 days before filing.
Where do tenants go with questions? The City refers tenants to ECHO Housing and Centro Legal de la Raza. Owners can email [email protected].
If you're buying or selling a San Leandro rental before January, BloomHomes Team can rebuild the rent roll at its January 1, 2027 maximum before you price or offer. Robin runs the numbers and Stephen negotiates from them. Start with a property valuation, or reach out and send us the building's rent history.
