California AB 1482 Rent Increase Formula:
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The California Tenant Protection Act (AB 1482) limits annual rent increases to no more than 5% plus the percentage change in the cost of living (CPI), or 10% of the lowest gross rental rate charged at any time during the 12 months prior to the increase, whichever is lower.
The calculator uses the AB 1482 formula:
Where:
Explanation: The calculation ensures landlords cannot increase rent more than 10% annually, even if CPI plus 5% would exceed that amount.
Details: Proper calculation helps landlords comply with California law and helps tenants understand their rights regarding rent increases. The law applies to most rental properties more than 15 years old.
Tips: Enter current rent in USD and the relevant CPI percentage (available from the Bureau of Labor Statistics). The calculator will show the maximum allowable new rent under AB 1482.
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 duplexes where the owner occupies one unit.
Q2: Where do I find the correct CPI percentage?
A: Use the CPI for your metropolitan area from the Bureau of Labor Statistics (BLS) website.
Q3: Can landlords increase rent more than once per year?
A: Yes, but the total increase over any 12-month period cannot exceed the cap.
Q4: What happens if a landlord exceeds the cap?
A: Tenants may be entitled to refunds of excess rent paid and could potentially sue for violations.
Q5: Are there local rent control laws that might apply?
A: Yes, some cities have stricter rent control ordinances that supersede AB 1482.