How Del Mar Landlords Can Raise Rent Without Losing Good Tenants

Costs are rising for rental property owners in Del Mar and throughout California, but how do you increase what you’re charging without chasing away good tenants? 

Raising rent is never an easy conversation, and if your property is covered by state or local rent stabilization laws, there are also hard limits to what you can charge. But in high-demand markets like Del Mar, there’s no reason not to raise your rent to the level that the market and the competition demand. 

With the right strategy, you can increase rent while maintaining tenant satisfaction and loyalty. In fact, when handled correctly, a rent increase can actually reinforce the relationship between landlord and tenant—especially in a desirable, lifestyle-driven community like Del Mar.

As professional property managers in Del Mar, we have a smart way to do it, and we’re sharing some tips with you here. 

Make Market-Driven Decisions

Before you think about a rent increase, research the current rental market in Del Mar. Compare your property to similar units in terms of size, amenities, condition, and location. Coastal proximity, walkability to restaurants or parks, and school districts (like the highly rated Del Mar Union School District) all play a role in fair market value.

If your rents are already above market, a rent increase could push a good tenant to start looking elsewhere. But if your property is under market value, your tenants may already be expecting an adjustment. Talk to a local property manager to get accurate comparables. Those online rental sites can serve as good starting points, but the most accurate data is coming from local experts who are renting homes every day.

Add Value Before Raising Rent

When tenants see more value, they’re less likely to push back against rental increases. That doesn’t always mean costly renovations. Small upgrades can go a long way.

Consider something like:

• Installing a smart thermostat or video doorbell
• Replacing outdated appliances
• Upgrading landscaping or outdoor common areas
• Offering faster Wi-Fi or subsidized utilities
• Adding assigned parking, valet trash, or secure package lockers

In Del Mar’s premium market, these enhancements not only justify a rent increase, they also attract and retain high-quality residents. 

Communicate Early and Transparently

Nobody likes a surprise rent hike. That’s why timing and communication are everything. California law requires that you provide at least 30 days of notice to tenants when you’re raising the rent, unless your increase is more than 10 percent, in which case you must provide 90 days of notice.

When you deliver the news, be honest and respectful. Tenants appreciate an explanation of the reason for the increase, whether those are rising costs, inflation, or market adjustments. This is a good time to discuss the improvements you’ve made or are planning. You can also sell them on the benefits of staying in place. This kind of transparency builds trust. 

Avoid Drastic Increases

Tenants are much more likely to accept small, annual increases than a sudden $400 jump after three years of flat rent. In Del Mar, keeping increases consistent and at around 3–5% per year makes budgeting easier and reduces shock.

Reasonable rental increases also protect your vacancy rate. Losing a great tenant over a larger-than-expected increase often costs more in turnover and lost rent.

Make sure you know the law. While Del Mar properties may be exempt from rent control if they are newer construction or single-family homes, you’re still competing for tenants against properties that do follow the rent control guidelines. Annual rent increases under AB 1482 are capped at 5% plus local inflation, up to 10%.

Focus on Retaining the Right Tenants

If you're renting to tenants who pay on time, take good care of the property, and are easy to work with, then you know it’s worth doing what you can to keep them, even if that means keeping your rental increase moderate. You should plan to increase the rent annually but make it a conversation rather than a rule. And, keep your new rent at or below what they would have to pay for a similar home elsewhere. 

In high-demand areas like Del Mar, tenant turnover is expensive. Marketing, cleaning, showings, vacancy time, and the risk of getting a less ideal tenant can quickly outweigh the bump in rent. Think long-term: a slightly lower increase that keeps a great tenant for another 12–24 months may deliver higher returns than dealing with a turnover.

Make It Personal (But Professional)