This time of year, landlords with properties subject to the Tenant Protection Act of 2019 may find themselves scratching their heads while they search for an important number issued by the government.
The Tenant Protection Act, passed as AB 1482, requires use of the CPI figure from April to determine the maximum allowable rent increase under this law.
And every April, landlords wonder: Where is that new number? Well, it turns out the CPI figures are often not available until late May. Not long after its enactment, the Tenant Protection Act was amended to account for this delay.
Here’s how it works: For rent increases that take effect before Aug. 1, of any calendar year, AB 1482 uses the data issued by the U.S. Bureau of Labor Statistics for the CPI published in April of the prior year. If the April number is not available for the geographic area, it uses the CPI published in March of the prior calendar year.
As a result, the CPI figure from April of 2023 applies to rent increases that take effect between Aug. 1, 2023, and July 31, 2024. Increases that take effect prior to Aug.1, 2023, are based on the April 2022 CPI.
To find out the current CPI based on the county in which your property is located, go to CAA’s website and use the “Find your CPI” tool in this link www.caanet.org/ab1482/. The tool will be updated by June with the new figures for increases that take effect on or after Aug.1, 2023.