Thursday, June 16, 2022

Per the California Apartment Association: AB 1482 allowed rent increase is set at 10% statewide

If you are a landlord of a property that falls under the requirements of California AB1482 (2020 Tenant Protection Act), the California Apartment Association (CAA) has released the allowable rent increase numbers based on the current consumer price index calculations for different areas in the state.

Statewide, CAA has determined that the allowable rent increase for properties that fall within the requirements of AB 1482 to be 10%. This is not surprising considering inflation numbers are globally pretty high right now.

California AB 1482 limits rent increases in any 12-month period to "no more than 5% plus the percentage change in the cost of living (CPI), or 10%, whichever is lower". For increases that take effect on or after August 1, 2022, due to inflation, the California Apartment Association has noted that all of the applicable area's CPIs are 5% or greater. So with that, the allowable rent increase is 10%. Until they re-evaluate if you are reading this well after today (June 16, 2022), best to make sure this information is still relevant.

There are many types of residential rental properties that are included and excluded from the rent cap and just cause eviction requirements of AB 1482 (and for added fun, in some areas rent control ordinances supersede AB 1482) -- so if you have questions, CAA is a great source of information, or may wish to consult a professional property manager or an attorney. 

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