AB 1482 Rent Increase Formula:
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California's AB 1482 is a statewide rent control law that limits annual rent increases to no more than 5% plus the percentage change in the cost of living (CPI), or 10% - whichever is lower. This applies to most rental properties in California that are more than 15 years old.
The calculator uses the AB 1482 formula:
Where:
Explanation: The law allows landlords to increase rent by either 5% plus CPI or 10%, whichever is lower. This calculator determines which applies and calculates the new maximum allowable rent.
Details: Accurate rent increase calculation is crucial for both landlords and tenants to ensure compliance with California law and avoid illegal rent increases that could lead to legal disputes.
Tips: Enter current monthly rent in USD and the relevant CPI percentage (typically available from government sources). The calculator will determine the maximum allowable rent increase under AB 1482.
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 duplexes where the owner occupies one unit.
Q2: Where do I find the correct CPI percentage?
A: The CPI percentage varies by region and is published by the Bureau of Labor Statistics. Check with local housing authorities for the correct figure.
Q3: Can landlords increase rent more than once per year?
A: No, AB 1482 limits increases to once every 12 months, regardless of the amount.
Q4: What if my city has stricter rent control?
A: Local ordinances that are stricter than AB 1482 take precedence. Always check local regulations.
Q5: How is the CPI percentage determined?
A: It's based on the percentage change in the Consumer Price Index for your metropolitan area or region, typically measured from April to April.