AB 1482 Rent Increase Formula:
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The California Tenant Protection Act (AB 1482) limits annual rent increases to the lesser of 5% plus the percentage change in the cost of living (CPI) or 10%, whichever is lower. This applies to most rental properties in California built more than 15 years ago.
The calculator uses the AB 1482 formula:
Where:
Explanation: The law caps rent increases at either CPI+5% or 10%, whichever is lower, to protect tenants from excessive rent hikes while allowing reasonable increases for landlords.
Details: AB 1482 helps maintain housing stability by preventing sudden, large rent increases that could displace tenants while allowing landlords to adjust rents for inflation and maintenance costs.
Tips: Enter the regional CPI percentage (available from government sources) and your current monthly rent. The calculator will show the maximum allowable increase under AB 1482.
Q1: Does AB 1482 apply to all rental properties?
A: No, exemptions include properties built in the last 15 years, single-family homes (unless owned by corporations), and duplexes where the owner occupies one unit.
Q2: How often can rent be increased under AB 1482?
A: Landlords can only increase rent once every 12 months under these limits.
Q3: Which CPI index should I use?
A: Use the regional CPI for your area (e.g., Los Angeles-Long Beach-Anaheim for Southern California).
Q4: Can local rent control laws be stricter?
A: Yes, cities with existing rent control (like San Francisco) maintain their stricter limits - AB 1482 sets a statewide baseline.
Q5: What about capital improvements?
A: AB 1482 doesn't prohibit additional increases for substantial capital improvements, but these require proper documentation and may have additional limitations.