San Leandro rent control is no longer a proposal sitting in committee. On February 2, 2026, the City Council passed Ordinance 2026-001—a Residential Rent Stabilization and Just Cause Eviction program that rewrites the playbook for rental property owners inside city limits.
If you own a multi-family rental in San Leandro, the financial math on your investment just shifted. The ordinance introduces a strict annual rent cap, a mandatory rental registry, expanded tenant relocation payments, and—the part that catches most landlords off guard—a retroactive baseline date that could force you to roll back rents you’ve already collected.
Whether you manage your own units or work with an East Bay property management company, understanding this ordinance is no longer optional. Here’s the full breakdown.
Who’s Exempt? Costa-Hawkins and City Limits
Before you recalculate every lease, check whether your property is covered at all. California’s Costa-Hawkins Rental Housing Act is state law—and it overrides local rent control ordinances. The San Leandro City Council cannot legally cap rents on property types protected at the state level.
Costa-Hawkins Exemptions
Single-Family Homes & Condos
Separately alienable units are exempt, provided they’re not owned by a REIT, corporation, or LLC with a corporate member.
Post-1995 Construction
Any building with a Certificate of Occupancy issued after February 1, 1995. This is a hard cutoff date.
Owner-Occupied Duplexes
If you occupy one unit as your principal residence at the start of the tenancy, the other unit is exempt from the cap.
Certain ADUs
Accessory Dwelling Units that meet specific state-level criteria generally remain exempt from local rent caps.
Exemption โ Free Pass
Even if your property is exempt from the rent cap under Costa-Hawkins, you may still be subject to the rental registry requirement and local eviction rules. A Costa-Hawkins exemption is not a blanket pass on all provisions of Ordinance 2026-001.
Ashland and Unincorporated Areas Are Not Affected
Ordinance 2026-001 is a municipal code. It applies only within the incorporated city limits of San Leandro. If your rental property sits in Ashland, San Lorenzo, Cherryland, Castro Valley, or any other unincorporated area of Alameda County, this ordinance does not apply to you—even if your mailing address says “San Leandro.”
Properties outside city limits continue to be governed by Alameda County rules and the statewide California Tenant Protection Act (AB 1482). If you’re unsure whether your property falls inside or outside city limits, pull up your parcel on the Alameda County Assessor’s map or ask your San Leandro property management company to verify.
The New Rent Cap: 3% Ceiling With a Retroactive Catch
For covered multi-family properties, annual rent increases are now capped at the lower of 3% or 65% of CPI. In practical terms, 65% of the Consumer Price Index will rarely reach 3% in the current economy. Most landlords should expect allowable annual increases somewhere between 1.5% and 2%.
| Provision | AB 1482 (State Law) | Ordinance 2026-001 (San Leandro) |
|---|---|---|
| Annual Rent Cap | 5% + CPI (up to 10%) | Lower of 3% or 65% of CPI Stricter |
| Banking Unused Increases | Not explicitly banned | Prohibited — use it or lose it New |
| Base Rent Date | N/A | July 1, 2025 (retroactive) Stricter |
| Relocation Assistance | ~1 month’s rent | 3ร rent or 3ร FMR (whichever is higher) Stricter |
| Rental Registry | None | Mandatory — no registry, no rent increase New |
| Cash for Keys Rescission | No mandated cooling-off | 30-day mandatory rescission period New |
The Retroactive Trap
Many landlords raised rents by 7–8% in late 2025 under AB 1482—perfectly legal at the time. Under Ordinance 2026-001, those increases may now exceed the retroactive cap calculated from the July 1, 2025 baseline. If you’re in this situation, do not assume that extra rental income is yours to keep. Consult your property management team or a real estate attorney immediately.
The Mandatory Rental Registry: No Registration, No Rent Increase
San Leandro is launching a mandatory Rental Registry (Chapter 4-45), powered by a platform called Tolemi. If your covered property is not fully registered and fees paid by the annual July 31 deadline, you lose the legal right to raise rent or process Just Cause evictions for that year.
Landlords will be charged an annual per-unit fee to fund the enforcement program. You’re permitted to pass through 50% of this fee to tenants, but only if you follow specific notice procedures and list it as a separate line item. You cannot fold it into the base rent.
Quick Tip
Think of the registry as a compliance gate. Miss the July 31 deadline and you’re locked out of your own rent increase for the entire year—regardless of what the cap would otherwise allow. Put it on the calendar now.
Expanded Just Cause Eviction and the $7,000+ Relocation Bill
Removing a tenant for a no-fault reason—owner move-in, substantial remodel, Ellis Act withdrawal—was already regulated under AB 1482. San Leandro’s ordinance makes it significantly more expensive.
Under the new rules, landlords must pay the higher of:
Relocation Payment Formula
3ร the tenant’s current monthly rent or 3ร the HUD Fair Market Rent for the Oakland-Fremont metro area—whichever is higher. Expect baseline payouts starting around $7,000 per unit, plus an additional $1,000 for households with seniors (62+), disabled individuals, or minors.
Even voluntary “Cash for Keys” agreements now come with heavy disclosure requirements, public filing, and a mandatory 30-day rescission period during which the tenant can legally back out after signing.
What San Leandro Landlords Should Do Right Now
If you own rental property inside San Leandro city limits, here are the immediate steps to protect your investment:
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1
Audit Your Rent Roll Back to July 1, 2025
Identify your Base Rent for every unit and compare it to what you’re charging today. Flag any increases that may exceed the new local formula.
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2
Verify Your Exemption Status
Pull your Certificate of Occupancy and title deed. If your property qualifies under Costa-Hawkins, document it now—before the city comes asking.
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3
Confirm You’re Inside City Limits
Ashland, San Lorenzo, and other unincorporated areas are not covered. Verify your parcel’s jurisdiction on the Alameda County Assessor’s map.
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4
Prepare for the Rental Registry
The July 31 deadline is a hard cutoff. Missing it means you cannot raise rent or process evictions for the year. Register early.
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5
Talk to a Professional
A qualified San Leandro property management company or real estate attorney can help you navigate compliance, identify exemptions, and avoid costly mistakes.
Frequently Asked Questions
The Bottom Line
Ordinance 2026-001 transforms rental property ownership in San Leandro from a relatively straightforward investment into a heavily regulated operation. Between retroactive rent baselines, mandatory registries, and relocation payouts that can run into the thousands, the margin for error is razor thin.
The landlords who come through this cleanly will be the ones who got ahead of the deadlines, verified their exemptions, and built a compliance system before enforcement kicks in on January 1, 2027.
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