California state legislature approves statewide rent control

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So California just approved statewide rent control, capped at 5% year over year rent increases over inflation. Governor Newsom will likely sign it. Not sure about the mechanics of how this works when buying rental property. Anyone know? For example, if you're looking at a property that cash flows at $850 a door, but rent is only $700 currently, you could raise it (assuming 3% inflation) a total of 8% to $756 per door. This might be something we have to review when buying depending on how the law is applied. Link here: The New York Times: California Approves Statewide Rent Control to Ease Housing Crisis.

https://www.nytimes.com/2019/09/11/business/economy/california-rent-control.html