2023 Max Allowable Rent Increases For Property Subject to AB1482
The US Bureau of Labor Statistics recently published the April 2023 CPI numbers. According to the CA Statewide rent control law, AB1482, the April CPI numbers dictate how much property owners can increase rents for the 12 month period starting August 1st of the year the CPI numbers are published.
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 rent increases that take effect between August 1, 2022 and July 31, 2023, the maximum allowable increase in Los Angeles has been 10%.
The official CPI number for April 2023 is 3.8% in LA County. That means for the period from August 1, 2023 thorough July 31, 2024 property owners will be allowed to increase rents by a maximum of 8.8%, a 1.2% reduction from the previous 12 months.
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.
It’s important to note that this max allowable rent increase of 8.8% only applies to properties in LA county that are subject to AB1482 and are not subject to any additional local rent control limits.
