Tropical Storm Rachel Emergency Triggers a 10% Rent Cap in LA County: What South Bay Landlords, ADU Owners, and Renters Should Know

Illustrative stock photo. Photo by Ivan S on Pexels.

Quick answer: If you rent out a house, apartment, or ADU anywhere in Los Angeles County, the state's anti-price-gouging law is in effect right now. Gov. Gavin Newsom declared a state of emergency for Imperial, Los Angeles, Orange, and San Diego counties on Oct. 15, 2026, after Tropical Storm Rachel. That generally caps rent increases at no more than 10% above pre-emergency levels, through Nov. 14, 2026, unless extended, according to the California Apartment Association (CAA).

Every South Bay city is in LA County. Manhattan Beach, Hermosa Beach, Redondo Beach, Torrance, the Peninsula. All of it.

What did Governor Newsom declare?

On Oct. 15, the Governor's office announced a state of emergency in Imperial, Los Angeles, Orange, and San Diego counties following Tropical Storm Rachel, which began Oct. 11.

The next day, Monica Deka, Compliance & Legislative Counsel at the California Apartment Association, explained what that means for rentals. The proclamation triggers Penal Code Section 396, California's anti-price-gouging law.

How much can a landlord raise rent during the emergency?

Per CAA, rent increases are limited to "no more than 10% above pre-emergency levels."

How that pre-emergency number works for your specific unit is a question for an attorney. I won't guess at it here.

Does the cap apply to new tenants and unit turnover?

Yes. CAA says the restrictions apply to "both existing tenants and prospective renters, including at unit turnover."

That matters for ADU owners and small landlords. If a tenant moves out and you list the unit in the next few weeks, the new asking rent falls under the same rule.

How long do the protections last?

CAA says they are "currently scheduled to remain in effect through Nov. 14, 2026, unless extended." I don't know if it will be extended. Watch for updates.

Can the law apply outside the four counties, or be triggered locally?

First, CAA reports that the California Attorney General's Office takes the position that the law "may apply outside the counties specifically named" if the disaster causes increased demand for housing elsewhere.

Second, CAA "does not track emergency declarations issued by local officials." A local emergency declaration can independently trigger the same law. Check with your city or county, too.

What are the penalties for rent gouging?

Per CAA, a violation can mean up to one year in county jail, a fine of up to $10,000, or both, plus civil enforcement actions and other penalties.

What about SB 1365 and long-term leases?

Separately, Gov. Newsom signed SB 1365 by Sen. Ben Allen on Sept. 30. It extends the emergency rent caps to long-term leases. If your lease runs longer than a year, ask an attorney how the rules apply to you.

What should South Bay landlords, renters, and investors do now?

• Landlords and ADU owners: before you raise rent or set a new asking price, check with an attorney or CAA. Put any increase on hold until you do.
• Renters: keep your current lease and every rent notice in one place. If an increase looks like more than 10%, talk to a tenant attorney.
• Investors and buyers: if you are buying a rental, ask the seller about any increases or new listings planned before Nov. 14, and run your numbers with the cap in mind.

Looking at rentals or income property? Browse Redondo Beach, Hermosa Beach, or Torrance homes for sale, or read more local notes on the blog.

If you want to talk through your own property, no pressure, you can reach me at (424) 667-4140 or kevin@kevinscottrealestate.com.

This post is general information, not legal advice. For your situation, talk to an attorney.

FAQ: The Tropical Storm Rachel rent cap

Is there a rent cap in Los Angeles County right now?

Yes. Gov. Gavin Newsom declared a state of emergency for Imperial, Los Angeles, Orange, and San Diego counties on Oct. 15, 2026, after Tropical Storm Rachel. Per the California Apartment Association, that triggers Penal Code Section 396, which limits rent increases to no more than 10% above pre-emergency levels.

Does the 10% cap apply when I re-rent a vacant unit or ADU?

According to the California Apartment Association, the restrictions apply to both existing tenants and prospective renters, including at unit turnover.

When does the Tropical Storm Rachel rent cap end?

The California Apartment Association says the protections are currently scheduled to remain in effect through Nov. 14, 2026, unless extended.

What is the penalty for rent gouging in California?

Per the California Apartment Association, violations can bring up to one year in county jail, a fine of up to $10,000, or both, plus civil enforcement actions and other penalties.

Can a local emergency declaration trigger the rent-gouging law?

Yes, it can. The California Apartment Association notes that local emergency declarations may independently trigger Penal Code Section 396, and that it does not track them. Check with your city or county.

Sources: Monica Deka, "Tropical Storm Rachel emergency triggers rent-gouging protections in four Southern California counties," California Apartment Association, Oct. 16, 2026; Office of Gov. Gavin Newsom, Oct. 15, 2026; "Governor signs bill expanding emergency rent caps to long-term leases," California Apartment Association.

Last updated: October 19, 2026

Kevin Scott Real Estate | eXp Realty | DRE 01958725