Selling a House With Tenants in Pasadena

What Measure H Actually Covers

Pasadena’s rent stabilization ordinance, City Charter Article XVIII, was approved by voters as Measure H and applies to multi-unit rental properties built before February 1, 1995.

Unlike a simple just-cause ordinance, Measure H sets an actual ceiling on how much rent can rise each year, tied to a percentage of the regional Consumer Price Index.

For the current cycle, running October 1, 2026 through September 30, 2027, the allowable annual increase is capped at 2.5%, which is 75% of the 3.4% regional CPI figure used to calculate it. The ordinance is enforced by the Pasadena Rental Housing Board, a dedicated body most LA County cities simply don’t have.

A December 2025 Court Ruling Changed Two Pieces, Not the Whole Ordinance

In December 2025, the California Court of Appeal ruled in California Apartment Assn. v. City of Pasadena, striking down two specific Measure H provisions: a requirement that landlords pay relocation assistance when a rent increase itself was large enough to count as a constructive eviction, and an extra pre-eviction notice requirement for nonpayment-of-rent cases beyond the standard state 3-day notice.

What the ruling did not touch is the core of the ordinance — the rent cap itself, the just-cause eviction protections, and the Rental Housing Board all remain fully in effect.

If you own a Pasadena rental and heard that rent control here got struck down, that’s not accurate; two specific enforcement mechanisms were narrowed, and the rest of Measure H stands.

Selling With a Tenant Already in Place

A covered Pasadena rental can’t simply be emptied out to make a sale easier. Just-cause eviction protections under Measure H mean a lease generally has to run its course, or end for one of the specific reasons the ordinance allows, before a tenant can be asked to leave.

That’s exactly why most conventional buyers, who need to move in or want a vacant house to finance easily, pass on occupied rentals.

A cash buyer who intends to hold the property as a rental doesn’t need the unit vacant to close — the lease and the security deposit simply transfer at closing, and the sale doesn’t have to wait on a tenancy ending on its own schedule.

What to Have Ready Before You Sell

Because Measure H compliance is documented, a buyer purchasing an occupied Pasadena rental will want to see the rent increase history to confirm each increase stayed within the annual cap, the current signed lease, and the security deposit ledger. Having those items ready before you request an offer shortens the process considerably, since it answers the questions a knowledgeable buyer would otherwise have to ask before landing on a number.

Frequently Asked Questions

Do I have to evict my tenant before selling?
No. A buyer who intends to keep the unit as a rental can close with the tenant and lease in place. Only a buyer needing vacant possession, such as an owner-occupant, would require the tenancy to end first, and only through a just-cause process.

Does Measure H still apply after the December 2025 court ruling?
Yes, for the parts that matter most to an owner selling an occupied unit — the rent cap, just-cause protections, and Rental Housing Board oversight all remain in place. Only the constructive-eviction relocation-payment requirement and the extra nonpayment notice rule were struck down.

Does Measure H apply to my property?
It applies to multi-unit rental buildings built before February 1, 1995. Newer construction and most single-family homes generally fall outside its coverage; check your building’s history if you’re unsure.

Will the buyer inherit my tenant’s current below-market rent?
Yes. A buyer who keeps the unit occupied also keeps the existing lease terms, including the current rent, subject to the same annual cap going forward.

Whether your tenant has six months left on a lease or has been in place for a decade, we can make an offer on the property as it sits today. Reach out for a no-obligation cash offer.