AB 1482 Maximum Allowable Yearly Rent Increases

AB 1482 Maximum Allowable Yearly Rent Increases

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AB 1482 Maximum Allowable Yearly Rent Increases

AB 1482 was approved October 8, 2019 and will be in affect until January 1, 2030. One of the major components of this bill is the rent cap placed on rental properties in California.

The annual rent increase a landlord may now charge a tenant under AB 1482 is shown in the sample calculations below.

Annual rent increase is limited to 5% + CPI or 10%, whichever one is lower. For example, if the West Region Consumer Price Index is at 1.3% (as it was at the end of April, 2020). The statewide cap would be 5% + 1.3% = 6.3%. This is lower than 10%, therefore, until the next April 12 month regional Consumer Price Index is released, statewide rent cap is 6.3%. Using this figure, a monthly rent of $1200 could be raised no more than $75.60 per month, (907.20 for that year).

The above is a simple example. Please read the below documents for updated and/or more detailed information and how it would pertain to your exact property and circumstances.

To read the bill in full please see: AB 1482

To follow the West Region Consumer Price Index (CPI) please see: CPI

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