We got out of the landlording business in CA when a local draconian rent control law was proposed ~18 months ago. In the end it failed, however, our city council continues to attempt to pass it piecemeal.
Frankly, I'm glad to be done with landlording. Pain in the ass, and one set of tenants was particularly hard on the unit. Getting any kind of construction done around here in Coastal CA costs an arm and a leg and takes forever. The good news is that we ended up selling RE when, for whatever reason, the market here was super strong. House was sold in 10 days, ~10% over asking.
We're counting down the months until we sell our primary residence and relocate out of this crazy state. Statewide rent control is not the reason we're moving, something we've been planning for 2 years, but it's further affirmation of our decision to invest our time and treasure elsewhere. It's a symptom of a larger problem. At the state and local level California has done pretty much everything in its power to engineer a housing shortage, and now that the bill has come due we are so blinded by no-growth ideology that the proposed solution, rent control, will make the problem much worse.
At present the caps are relatively reasonable (5% + CPI), but you can be sure this will get ratcheted down as landlords increasingly get out of the business. Apartments will be converted to condos, or sold off individually to owners via TIC arrangements. Seems likely that it will also get expanded to SFHs and Condos over time as well. No place is perfect, but California has absolutely terrible instincts about such things.