Legislation approved last year will make it easier to determine allowable annual rent increases under AB 1482, the Tenant Protection Act of 2019.

The Tenant Protection Act 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. The law defined the “percentage change in the cost of living” as the percentage from April 1 of the prior year to April 1 of the current year. This created problems with calculating rent increases because the April figures are often not available until June. Landlords who wanted to increase rent effective between April and June did not have access to the correct CPI figure.

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