Hayward | Rent and Tenant Rules

Hayward Rent Stabilization and Tenant Rules for Owners Who Rebuild

Rent stabilization is a local cap on how fast rent may rise. Just cause means a landlord may end a tenancy only for a reason the law lists. Hayward has both, in the Residential Rent Stabilization and Tenant Protection Ordinance, Chapter 12, Article 1 of the Municipal Code, and a relocation law in Article 2. An owner who plans to replace an old rental with a duplex, triplex or apartment building meets these rules twice: when the tenants leave, and when the new homes are rented. See the Hayward overview for the whole guide.

Which Rentals the Rules Cover

Section 12-1.02 says the 1983 Rent Stabilization Ordinance and the 2019 "Emergency Just Cause for Protection Ordinance" were "repealed and replaced" by this one. Section 12-1.05 dates the current rules "From and after July 25, 2019 (the effective date of this Ordinance)." The code notes later amendments by Ordinance 20-14 in July 2020, Ordinance 24-08 in December 2024 for relocation, and Ordinance 26-03, adopted February 17, 2026, for fees and the dispute process.

The rent cap applies to a covered rental unit: "Any residential Rental Unit, other than a mobile home unit ... that is located in the City of Hayward and used or occupied by the payment of Rent." Section 12-1.04(e) then excludes seven groups, three of which matter most to a builder:

• Newer buildings. "Rental Units located in a structure for which a certificate of occupancy is first issued after July 1, 1979."
• Owner-occupied lots with an ADU. ADUs that comply with the City's ADU section "if the primary residence is occupied by the Property owner."
• Separately owned homes. Property "alienable separate from the title to any other dwelling unit," such as a sold condominium, and units exempt under the Costa-Hawkins Rental Housing Act.

Civil Code 1954.52, the Costa-Hawkins Act, lets an owner set rent freely on a unit with "a certificate of occupancy issued after February 1, 1995." Hayward's July 1, 1979 cut-off is earlier, so every home built since then is outside the Hayward cap. New homes that replace an old rental start outside the cap.

Source: Hayward Municipal Code Chapter 12, Sections 12-1.04 to 12-2.11, and Section 10-1.2737, Supplement 28 Update 1.

The 5 Percent Rent Increase Threshold

Section 12-1.05(a) allows a rent increase on a covered unit "once every twelve (12) months for an amount equal to or less than five percent (5%) of the existing total monthly Rent." A larger increase is open to a tenant petition, which goes to mediation and then arbitration, a hearing before a neutral decision maker. A landlord may bank an increase, which means delay it, and add "no more than a five percent (5%) Banked Increase to the total of any current year Rent Increase not to exceed a total annual Rent Increase of ten percent (10%)." A banked increase "shall expire after ten (10) years."

Capital improvements, work that adds value and extends the life of the building, can be passed through only after an arbitrator's decision. The total passed through "may not exceed fifty percent (50%) of the total amount paid by the Landlord," spread over five years, or sixty months. Late fees are capped at five percent of the monthly rent for a payment three or more days late.

Section 12-1.07 sets the dispute steps. A tenant has thirty days after a rent increase notice to file a petition, then a ten day period to meet with the landlord. The Rent Review Officer sets a mediation "no later than thirty (30) days after the acceptance of the petition." If the parties do not agree, the case goes to an arbitrator, and the hearing "shall be held no more than thirty (30) days after the Arbitrator is assigned." The arbitrator decides "within thirty (30) days of the close of the hearing." For tenant petitions, "the burden of proof shall be on Landlord."

When a covered unit is voluntarily vacated, the landlord may set the new rent freely; Section 12-1.06(b) "does not impose limitations on the amount of Initial Rent." After a vacancy that was not voluntary, the landlord "may raise the Rent up to five (5%)." The free reset is also lost where the landlord ended the last tenancy under Civil Code 1946, or where cited health and safety violations stayed unfixed for 60 days.

Just Cause When You Plan to Rebuild

Section 12-1.13 applies "to all Rental Units" and "includes residential Rental Units that are not included within the definition of Covered Rental Units." Four kinds of housing are left out, such as a home where the owner lives and shares a kitchen or bath with the tenant. A landlord may end a tenancy only on one of fifteen grounds. Three matter to an owner who rebuilds:

• Demolition, ground (8). "The Landlord, after having obtained all necessary permits from the City of Hayward, seeks in good faith to recover possession of the Rental Units, in order to remove the Rental Unit from the market by demolition."
• Substantial repairs, ground (7). Repairs needed to meet health and safety codes that "cannot be completed while the Tenant resides on the premises," with a "right of first refusal to re-occupy the unit upon completion."
• Owner move-in, ground (9). The owner, holding "at least a fifty-one percent (51%) interest," or a listed family member moves in as a principal residence. The ground is lost "if a comparable unit is already vacant and available in the Property."

The notice must state the reason "with specific facts." Under Section 12-1.16, every landlord must give the City "a true and correct copy of any and all Notices of Termination and/or Rent Increase notices within thirty (30) days" after serving them, and the City may cite a missed copy with "no requirement for a first warning."

Relocation Pay

Section 12-2.03 applies when a landlord ends a tenancy for demolition, owner move-in or another no-fault reason under state or federal law. The landlord must, "regardless of the Tenant's income," either pay the tenant directly or waive the final month's rent in writing. The amount "shall be equal to one month of the Tenant's Rent that was in effect when the Landlord issued the notice," paid "within fourteen (14) calendar days of service of the notice." Proof of payment goes to the Rent Review Officer within seven days.

Two more rules make the payment hard to skip. "A Landlord's failure to strictly comply with this section shall render the notice of termination void." And when the notice is for "demolishing the existing Rental Units in order to build new residential units," the landlord "must also comply with relocation requirements" in state law. Section 12-2.11 sets aside the permanent relocation rule for the cases listed in Civil Code 1946.2(e), the state just cause law.

No Net Loss and Protected Units

The zoning code adds a building rule. Section 10-1.2737 says "A housing development project shall not require the demolition of residential dwelling units unless the project creates at least as many residential dwelling units as will be demolished." For protected units the project must also replace each one and include "at least as many residential dwelling units as the greatest number of residential dwelling units that existed on the project site within the last five years."

Protected units include homes under a recorded affordability covenant, homes "subject to any form of rent or price control within the past five years," homes occupied by "lower or very low income households, seniors or persons with disabilities within the past five years," and homes withdrawn from the rental market under the Ellis Act in the past 10 years. A Hayward covered rental unit is under rent control, so most pre-1979 rentals count. If a protected rent-controlled unit housed lower income people in the last five years, the replacement must be affordable to low-income households, and a rental replacement is restricted "for at least 55 years." Residents may stay "until six months before the start of construction activities," and get relocation benefits and a "right of first refusal for a comparable unit." These rules follow Government Code 66300.6.

Fees, Penalties and Code Errors

Section 12-1.17 charges a yearly fee "against all Rental Units, including Covered Rental Units," set by Council resolution. The FY 2026-27 fee schedule lists $32 per rental unit, $66 per covered rental unit and $5 per mobile home space, delinquent if not received "on or before 5 p.m., October 31." A landlord may pass "up to fifty (50) percent" of the fee for a covered unit to the tenant. A landlord who fails to pay may not collect rent increases. The schedule also lists a Tenant Relocation Assistance Ordinance hearing fee of $1,500 and an administrative citation of $1,000.

• Wrong code name. Section 12-2.03(d) refers to "California Civil Code section 66300.6." Section 66300.6 is in the Government Code; read the reference as Government Code 66300.6.
• Covered units and protected units. The rent ordinance and the demolition rule use different words for the same homes. A pre-1979 covered rental is both a "Covered Rental Unit" in Chapter 12 and, being under rent control, a "protected unit" under Section 10-1.2737.

Where to Go Next

Related on VanPlex: the Hayward overview and the California rent and tenant rules page.

Frequently Asked Questions

Official sources (checked October 2026)