Rent Control Formula:
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The California Tenant Protection Act (AB 1482) limits annual rent increases to the lesser of 5% plus inflation (CPI) or 10%, whichever is lower. This applies to most rental properties in California that are at least 15 years old.
The calculator uses the AB 1482 formula:
Where:
Explanation: The law allows landlords to increase rent by either 5% plus the regional CPI or 10%, whichever is lower.
Details: Understanding maximum allowable rent increases helps both tenants and landlords comply with California law and plan their finances accordingly.
Tips: Enter the regional CPI percentage (find this from government sources) and your current monthly rent. The calculator will show the maximum allowed increase and new rent.
Q1: Does AB 1482 apply to all rental properties?
A: No, exemptions include properties built within the last 15 years, single-family homes (unless owned by corporations), and some duplexes where the owner occupies one unit.
Q2: Which CPI should I use?
A: Use the regional CPI for your area (e.g., Los Angeles-Orange County CPI for Southern California).
Q3: How often can rent be increased?
A: AB 1482 limits increases to once every 12 months, regardless of the amount.
Q4: Are there local rent control laws with stricter limits?
A: Yes, some cities like San Francisco and Los Angeles have local ordinances with stricter limits that override AB 1482.
Q5: What if my landlord increases rent more than allowed?
A: Tenants can challenge illegal increases through local rent control boards or small claims court.