Daly City Rent Control Guide: State Rent Cap, Just Cause and Selling a Rental

Last updated November 13, 2026. Reviewed by the Cash Home Buyers CA team.

Daly City rent rules at a glance

Local rent cap	None found. Daly City does not appear on the Attorney General’s chart of local rent caps
State rent cap	5% plus local CPI, or 10%, whichever is lower (Civil Code 1947.12)
State just cause	Required after 12 months of tenancy (Civil Code 1946.2)
No-fault relocation	One month of rent or waiver of the last month’s rent under state law
Exempt from state rules	Many single-family homes and condos not owned by a corporation, REIT or LLC with a corporate member, with a written exemption notice
Local legal help	The city funds legal aid for lower-income tenants, per its HUD Consolidated Plan

Does Daly City have rent control?

We found no local rent cap or local just cause ordinance for Daly City on official sources. The California Attorney General keeps a chart of cities and counties with their own rent caps, and Daly City is not on it as of the page’s July 2026 update.

That means state law is the main rule for Daly City landlords. The city’s own planning documents describe support for legal aid for lower-income tenants with eviction and landlord-tenant disputes, which is help, not a local cap.

Because cities can adopt rules at any time, confirm with the city before you serve a notice.

The state Tenant Protection Act in Daly City

Under Civil Code 1947.12, a covered landlord may not raise the rent more than 5 percent plus the local change in the cost of living, or 10 percent, whichever is lower, within any 12-month period.

The Attorney General’s guidance explains that the law also requires just cause to end a tenancy once the tenant has lived in the unit for 12 months. Just causes fall into two groups. At-fault reasons include nonpayment of rent and violating a material term of the lease.

No-fault reasons include owner move-in, withdrawal of the unit from the rental market, compliance with a government order and demolition or substantial remodel, and a landlord who ends a tenancy for a no-fault reason owes relocation help of one month of rent or must waive the last month.

Which Daly City rentals the state law does not cover

The state law has exemptions that matter to Daly City homeowners.

Housing issued a certificate of occupancy in the previous 15 years is exempt, and so is a single-family home or condominium that is not owned by a real estate investment trust, a corporation or an LLC with a corporate member, as long as the tenant received the required written exemption notice.

Dormitories, deed-restricted affordable housing and some owner-occupied duplexes are also listed. If you rent out a house you own personally and gave the notice, state law may not cap the rent or require just cause.

If the notice was missing from the lease, ask a landlord-tenant attorney whether the exemption holds.

What this means for a Daly City owner selling a rental

Most Daly City owners who ask about rent control own a rented house, an in-law unit or a small multi-unit building. Because the state rules apply, the key questions are whether your unit is exempt, whether the tenant has been there 12 months, and whether the buyer wants the home vacant.

A buyer who plans to occupy the home needs a valid no-fault just cause and the relocation payment; a buyer who keeps the tenant steps into the lease at the current rent.

Our Daly City housing market guide covers prices and costs, and our Daly City permits guide helps if the unit was added without a permit.

State law sets the floor everywhere. Under Civil Code 1947.12, a covered owner may not raise the rent more than 5 percent plus the local change in the cost of living, or 10 percent, whichever is lower, and that section remains in effect until January 1, 2030.

The statute exempts, among other things, housing issued a certificate of occupancy within the previous 15 years, housing already under a stricter local cap, and a single-family home or condominium that is not owned by a real estate investment trust, a corporation or an LLC with a corporate member, as long as the written exemption notice was given to the tenant.

Selling a rented Daly City house

Rent rules matter at the sale because a buyer steps into your landlord role the day escrow closes. The tenant’s lease, deposit and any protections under the rules above go with the property.

A cash buyer who plans to keep the tenant needs a clean rent history; a buyer who plans to occupy the house needs to know whether the law lets them end the tenancy and what it will cost.

Our statewide guide to selling a tenant-occupied home walks through the basics, and our tenant-occupied page shows how a cash sale works when the house is rented.

If you own a rented Daly City house, in-law unit or small building, a cash sale can close as-is, with the tenant in place or on your timeline.

Documents to gather before you talk to a buyer

• The signed lease or month-to-month agreement, plus any addenda and the date each tenant moved in.
• A rent ledger showing the amount and date of every increase over the last few years.
• Copies of every notice you served: rent increases, entry notices, cure or termination notices.
• Proof of any registration, program fee or required notice to the city, where the city asks for one.
• The security deposit amount and where it is held.
• Any open repair requests, permits or code complaints on the unit.

Common mistakes landlords make before a sale

The most expensive mistake is raising the rent or serving a termination notice right before listing without checking whether the increase is allowed or the notice states a valid reason.

A notice that does not follow the rules can be void, and it can give the tenant a defense that a buyer will price in. A second mistake is promising a buyer the house will be vacant when the tenant has protections that make that uncertain.

A third is skipping required city paperwork, which in some cities blocks future rent increases until it is cured.

If the tenant is cooperating, many sellers simply sell with the tenant in place and let the buyer decide. If you want the house vacant, ask the city or a landlord-tenant attorney what notice, reason and payment the rules require before you offer a buyout or serve anything.

When the house also needs repairs or has unfinished permits, see our guide to selling as-is and the cost list in our seller closing costs guide.

How to sell a house in Daly City

1. Check whether your unit is exempt under state law.
2. Gather the lease, rent ledger and every notice you served.
3. Request a no-obligation cash offer as-is.
4. Decide whether the buyer keeps the tenant or you follow the just cause rules for a vacant sale.
5. Close on your timeline with no repairs or commissions.

More local pages: We Buy Houses in Daly City, selling as-is, selling fast, and the San Mateo County hub.

Frequently asked questions

Does Daly City have rent control?

We found no local rent cap or just cause ordinance on official sources, and Daly City is not on the Attorney General’s chart of local rent caps. The state Tenant Protection Act applies to covered rentals.

What is the state rent cap that applies in Daly City?

5 percent plus the local CPI change, or 10 percent, whichever is lower, in any 12-month period under Civil Code 1947.12.

Does just cause apply to Daly City tenants?

Under state law, after a tenant has lived in the unit 12 months, a landlord needs a just cause that Civil Code 1946.2 lists, unless the unit is exempt.

Are single-family homes exempt in Daly City?

Many are, if the owner is not a REIT, corporation or LLC with a corporate member and the tenant got the written exemption notice.

Can I end a tenancy to sell my Daly City house?

A sale is not a listed just cause. You can sell with the tenant in place, or end the tenancy only for a listed reason, which may require relocation help.

Where do I check for a new local ordinance?

Ask the City of Daly City or check the Attorney General’s chart of local rent caps, which lists cities that adopted their own.

More guides

• We Buy Houses in Daly City
• We Buy Houses in San Mateo County
• San Mateo County Property Tax Guide
• Daly City Building Permits Guide
• Daly City Code Enforcement Guide
• Daly City Zoning and ADU Guide
• Daly City Cash Offer Process
• Daly City Housing Market and Home Prices Guide
• Sell a Tenant-Occupied House in Daly City
• California Tenant-Occupied Home Sale Guide
• All California Guides

Sources

• California Attorney General: Limits on Rent Increases
• California Civil Code section 1947.12
• California Civil Code section 1946.2
• California Attorney General: Landlord-Tenant Issues
• City of Daly City: HUD Consolidated Plan

This guide is general information from public sources, not legal advice. Confirm current rules, fees and hours with the city.