The California Apartment Association this week finished updating the consumer price index rates for all areas of the state. The 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, 2022, due to inflation, all of the applicable CPIs are 5% or greater. This means the that 10% cap from AB 1482 comes into play.
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, 2022.
To find out the applicable CPI for the county in which your property is located, go to CAA’s website and use the “Find your CPI” tool in this link.
CAA members can find a plethora of compliance material for Tenant Protection Act on the association’s AB 1482 page, including a tool to help rental housing providers determine whether the rent cap and “just cause” eviction provisions of the law apply to their property. That tool is also available below.