1. What is California's Rent Increase Law?

California's rent control law (AB 1482) limits annual rent increases to no more than 5% + local CPI (Consumer Price Index), with a maximum cap of 10%. This applies to most rental properties more than 15 years old.

2. How Does the Calculator Work?

The calculator uses the California rent increase formula:

Where:

• \( CPI \) — Consumer Price Index percentage for your area
• \( 5\% \) — Base allowable increase
• \( 10\% \) — Maximum allowable increase cap

Explanation: The formula ensures landlords cannot increase rent by more than 5% plus inflation (CPI), but never more than 10% total in one year.

3. Importance of Rent Control

Details: These protections help prevent sudden, large rent hikes that could displace tenants while allowing reasonable increases to account for inflation and property maintenance costs.

4. Using the Calculator

Tips: Enter the current CPI percentage for your area (available from government economic reports). The calculator will determine the maximum legal rent increase for 2025.

5. Frequently Asked Questions (FAQ)

Q1: Does this apply to all rental properties in California?
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 is CPI determined for my area?
A: CPI is calculated by the Bureau of Labor Statistics. Check with your local housing authority for the specific CPI percentage applicable to your region.

Q3: Can landlords increase rent by less than the maximum?
A: Yes, landlords may choose to implement smaller increases or none at all.

Q4: Are there additional local rent controls?
A: Some cities (like Los Angeles and San Francisco) have stricter local ordinances that may further limit increases.

Q5: When did this law take effect?
A: AB 1482 took effect January 1, 2020, and currently extends through 2030.