Understanding the 2027 AGA and the required annual security deposit interest payment due to most tenants.
2026 Annual Security Deposit Interest Payments Are Due Soon
Tenants In Units Fully or Partially Covered By the Rent Ordinance Are Owed Interest on their Security Deposits at a Rate of 0.6%
The Berkeley Rent Ordinance requires that landlords of fully or partially covered units return annual interest on tenants’ security deposits by the end of December, or deduct the owed interest amount from January 2027 rent.
The 2026 annual security deposit interest rate is 0.6 %
Penalty if Interest Is Not Paid by January 31
Per Rent Board Regulation 704, if the annual interest is not paid by January 31st, the tenant can deduct 10% of their security deposit amount from a rental payment during the 2027 calendar year.
More Information on the Annual Security Deposit Payment
For a quick overview of security deposit interest, watch our Security Deposit Interest Explainer video. For more in-depth information visit our Security Deposit Interest webpage. To determine how much interest is owed, visit our Calculator webpage.
If you need further assistance, you can contact a Rent Board housing counselor.
2027 Annual General Adjustment (AGA)
The AGA increases the rent ceilings for fully-covered units
The AGA applies to most (but not all) units fully covered by Berkeley’s Rent Ordinance. Fully covered units have a rent ceiling, which is the maximum amount of rent a landlord can charge for the unit. The AGA allows landlords to raise the rent by a set percent with proper notice, starting January 1.
Not sure what your coverage is? Visit our Is Your Unit Covered by Rent Control webpage.
The 2027 AGA is 2.5%
Under the Ordinance, the AGA must be calculated at 65% of the percentage increase in the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland-San Jose region as published by the U.S. Department of Labor.
Based on this formula, the Berkeley Rent Board has adopted a 2027 AGA of 2.5%.
Landlords Must Give Tenants Proper Notice to Raise the Rent
Beginning January 1, 2027, eligible landlords may raise rent ceilings by 2.5% for tenancies starting prior to January 1, 2026, after giving tenants a proper written notice of rent increase. Proper notice is:
- 30 days for rent increases of 10% or less
- 90 days for rent increases of more than 10%.
Here is a Sample Notice of Rent Increase for the AGA.
Landlords Cannot Take the AGA in Certain Cases
A landlord is not eligible for the 2027 AGA if a tenancy started in 2026.
In addition, under Rent Board Regulations 1100 and 1147, landlords cannot take the AGA in the following cases:
- Failure to properly register rental units as required by B.M.C. §13.76.080, including the requirement to file a vacancy registration form at the start of a new tenancy commencing on or after January 1, 1996.
- Failure to comply, after order of the Board, with any provisions of the Ordinance and/or Board orders or regulations.
- Failure to bring the rental unit into compliance with the implied warranty of habitability, as shown by an outstanding Notice of Violation from the City of Berkeley’s Housing Code Enforcement, and/or failure to comply with a Rent Board Hearing Examiner’s Decision.
- Failure to return annual interest on a tenant’s security deposit.
A Tenant Must File a Petition to Contest a Landlord’s Ability to Take the AGA
A tenant who believes a landlord is ineligible to apply an AGA for any of the reasons discussed above can file a tenant petition for individual rent adjustment with the Rent Board for Illegally High Rent.
More Information and Forms Related to the AGA
For a quick overview of the AGA, watch our AGA Explainer video. For more information, including Notice of Rent Increase forms, please visit our AGA and AGA Calculator pages.
If you need further assistance, you can contact a Rent Board housing counselor.
Looking Up a Unit’s Rent Ceiling
Learn how to use Rent Board’s Rent Registry to look up information on a unit and understand the results you’ll see by visiting our Unit Information Lookup page.
You can also go directly to the Rent Registry and type the property address into the search bar. Remember, rent ceilings will increase by 2.5% on January 1, 2027 for eligible units. If you search for a property before then, 2026 rent ceilings will be shown.
Contacting a Housing Counselor for Help
If you need help understanding if or how the AGA or annual security deposit interest payment requirement apply to you, you can contact a housing counselor in the following ways:
- Make an appointment using our online appointment form.
- Call (510) 981-7368 (RENT)
- Email rent@berkekeyca.gov
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