1. What is the Rent Increase Formula?

The California rent increase formula calculates the maximum allowable rent increase percentage for 2025 based on the Consumer Price Index (CPI) plus 5%, capped at 10%. This follows California's Tenant Protection Act (AB 1482).

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( CPI \) — Consumer Price Index percentage
• 5% — Fixed addition to CPI
• 10% — Maximum allowable increase cap

Explanation: The formula ensures rent increases are tied to inflation but protects tenants from excessive hikes.

3. Importance of Rent Increase Calculation

Details: Accurate rent increase calculation is crucial for landlords to comply with California law and for tenants to understand their rights regarding rent hikes.

4. Using the Calculator

Tips: Enter the current CPI percentage (without the % sign). The calculator will compute the maximum allowable rent increase percentage for 2025 under California law.

5. Frequently Asked Questions (FAQ)

Q1: What CPI should I use?
A: Use the regional CPI percentage for your area as published by the California Department of Industrial Relations.

Q2: Does this apply to all rental properties?
A: AB 1482 covers most residential properties older than 15 years, with some exceptions like single-family homes not owned by corporations.

Q3: How often can rent be increased?
A: Under AB 1482, rent can only be increased once every 12 months.

Q4: Are there local rent control laws?
A: Some cities have stricter rent control ordinances that may override state law. Check local regulations.

Q5: When does this formula take effect?
A: This formula is valid for rent increases taking effect in 2025.