Rpi Rent Increase Calculator Los Angeles

Rent Increase Formula:

\[ \text{Rent Increase} = \min(\text{RPI} + 3\%, 8\%) \times \text{Current Rent} \]

Rent Increase:

New Monthly Rent:

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1. What is the RPI Rent Increase Calculator?

This calculator determines the maximum allowable rent increase for rent-controlled properties in Los Angeles based on the Retail Price Index (RPI) plus 3%, capped at 8% maximum increase.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ \text{Rent Increase} = \min(\text{RPI} + 3\%, 8\%) \times \text{Current Rent} \]

Where:

\( RPI \) — Retail Price Index percentage (current annual rate)
\( 3\% \) — Fixed addition allowed by LA rent control
\( 8\% \) — Maximum allowed annual rent increase
\( Current Rent \) — The tenant's current monthly rent amount

Explanation: The calculation takes the RPI rate, adds 3%, and then applies whichever is smaller between that sum or 8% to the current rent amount.

3. Los Angeles Rent Control Rules

Details: Under Los Angeles' Rent Stabilization Ordinance (RSO), annual rent increases are limited to 3% plus the percentage change in the Consumer Price Index (CPI), with a maximum cap of 8% (for units under LA's RSO).

4. Using the Calculator

Tips: Enter the current RPI percentage (available from government economic reports) and the tenant's current monthly rent. The calculator will show the maximum allowable rent increase and the new rent amount.

5. Frequently Asked Questions (FAQ)

Q1: What properties does this apply to?
A: This applies to residential rental properties covered by LA's Rent Stabilization Ordinance (generally multifamily buildings built before October 1978).

Q2: How often can rent be increased?
A: For RSO-covered units, rent can only be increased once every 12 months.

Q3: Where can I find the current RPI rate?
A: The RPI is published by the UK Office for National Statistics. For US calculations, CPI is typically used instead - check with LA Housing Department for correct index.

Q4: Are there exceptions to these rules?
A: Yes, certain properties are exempt (single-family homes, condos, newer buildings) and capital improvement passthroughs may allow additional increases.

Q5: When did these rules take effect?
A: LA's rent control rules have evolved over time. The current RSO with these increase limits has been in place since 2019.