1. What is the California CPI Rent Increase?

The California CPI Rent Increase formula determines the maximum allowable rent increase for certain rental properties in California for 2024. It's based on the Consumer Price Index (CPI) plus 5%, capped at a maximum of 10% increase.

2. How Does the Calculator Work?

The calculator uses the California rent increase formula:

Where:

• Current Rent — The tenant's current monthly rent amount
• CPI — The Consumer Price Index percentage for the relevant area
• 5% — The fixed percentage added to CPI
• 10% — The maximum allowable increase

Explanation: The formula ensures rent increases are tied to inflation (CPI) but protects tenants with a cap on maximum increases.

3. Importance of Rent Increase Calculation

Details: Accurate rent increase calculation is crucial for landlords to remain compliant with California law and for tenants to understand their rights regarding rent increases.

4. Using the Calculator

Tips: Enter current rent in USD and the relevant CPI percentage. The calculator will determine the maximum allowable rent increase for 2024 under California law.

5. Frequently Asked Questions (FAQ)

Q1: Does this apply to all rental properties in California?
A: No, this applies to properties covered by AB 1482 (Tenant Protection Act). Some properties are exempt, including newer buildings and single-family homes not owned by corporations.

Q2: Where do I find the correct CPI percentage?
A: The CPI percentage varies by region. Check with the California Bureau of Labor Statistics for the most current CPI data for your area.

Q3: How often can rent be increased?
A: Under AB 1482, rent can only be increased once every 12 months.

Q4: Are there exceptions to these limits?
A: Yes, landlords may petition for additional increases for capital improvements or if operating costs increase significantly.

Q5: When did these rules take effect?
A: AB 1482 took effect January 1, 2020, and remains in effect through 2030 unless extended.