California Rent Control Calculator For Landlords

AB 1482 Rent Increase Formula:

\[ \text{New Rent} = \text{Current Rent} \times (1 + \min(\text{CPI} + 5\%, 10\%)) \]

New Rent (USD):

Allowed Increase Percentage:

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1. What is AB 1482 Rent Control?

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%. This calculator helps landlords determine the maximum allowable rent increase under this law.

2. How Does the Calculator Work?

The calculator uses the AB 1482 formula:

\[ \text{New Rent} = \text{Current Rent} \times (1 + \min(\text{CPI} + 5\%, 10\%)) \]

Where:

Current Rent — The tenant's current monthly rent amount
CPI — The percentage change in the Consumer Price Index for the region
5% — The fixed percentage allowed under AB 1482
10% — The maximum allowed annual increase under AB 1482

Explanation: The law allows landlords to increase rent by either 5% plus CPI or 10%, whichever is lower. This calculator computes the maximum legal increase.

3. Importance of Rent Control Calculation

Details: Proper calculation ensures compliance with California law, avoids legal disputes with tenants, and helps in financial planning for both landlords and tenants.

4. Using the Calculator

Tips: Enter current monthly rent in USD and the relevant CPI percentage. The CPI can typically be found through government economic reports or local housing authorities.

5. Frequently Asked Questions (FAQ)

Q1: Does AB 1482 apply to all rental properties?
A: No, there are exemptions including properties built within the last 15 years, single-family homes (unless owned by corporations), and certain duplexes where the owner occupies one unit.

Q2: How often can landlords increase rent under AB 1482?
A: Rent increases are limited to once every 12 months, and must comply with the maximum percentage calculation.

Q3: Which CPI index should be used?
A: Typically the regional CPI for the area where the property is located, as published by the Bureau of Labor Statistics.

Q4: Are there additional local rent control laws?
A: Yes, some cities have stricter rent control ordinances that may further limit increases. Always check local regulations.

Q5: What if the tenant has lived there less than a year?
A: The same rules apply - the increase is calculated based on the current rent, regardless of tenancy duration.