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Calculating Your Next Rent Increase

Posted By: Bill Christiansen

Under California law (AB 1482), annual rent increases are capped at 5 percent plus the change in the regional Consumer Price Index (CPI), or no more than 10 percent of the lowest gross rental rate charged the tenant at any time during the twelve (12) months prior to the effective date of the increase.

  • For rent increases that take effect prior to August 1st of any year, the "Last Year" CPI adjustment, from April two years ago through April one year ago, should be used to determine the allowable rent increase for the region in which property is located.
  • For rent increases that take effect on or after August 1st of any year, the "Current Year" CPI adjustment, from April last year through April in the current year, should be used to determine the allowable rent increae for the region in which the property is located.
  • All CPI percentages are to be rounded to nearest 1/10th of a percent.

Effective August 1, 2021, in the Los Angeles-Long Beach-Anaheim and Riverside-San Bernardino regions, the change in the CPI (April 2020 - April 2021) is 3.6%, so the maximum allowable annual rent increase is 8.6%.

For more information, visit the Bureau of Labor Statistics website and refer to the western region, Los Angeles-Long Beach-Anaheim: https://www.bls.gov/regions/west/news-release/consumerpriceindex_losangeles.htm.

If you have questions, contact AAOC Vice President of Government Affairs Bill Christiansen at billc@aaoc.com.