Earlier this week, the California Apartment Association updated the consumer price index rates for all areas of the state. These figures are used for calculating maximum allowable rent increases under AB 1482 (the Tenant Protection Act).
AB 1482 restricts 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 Aug. 1, 2023, all the applicable CPIs are less than 5%, reflecting a drop in the inflation rate from the prior year.
AB 1482 applies the April CPI to rent increases that are effective on or after Aug. 1 of each year. The CPI percentage must also be rounded to the nearest one-tenth of a percent. This means that the CPI you must use will depend on when the rent increase will be taking effect, whether before August or on or after Aug. 1 of any calendar year. CAA’s online calculator provides the CPI percentage that applies before Aug. 1 as well as the percentage that applies on or after Aug. 1, 2023.
To find out the applicable CPI for the county in which your property is located, go to the AB 1482 page on CAA’s website and use the “Find your CPI” tool. This page includes other compliance material for Tenant Protection Act as well, including a tool to help you determine whether the rent cap and “just cause” eviction provisions of the law apply to your property. Note, you must be signed into your CAA account to access these resources. If you do not see them on the AB 1482 page, please make sure you are logged in.