For landlords in California, keeping up with the ever-changing landscape of property management is crucial. As of August 1, 2022, there have been significant developments in rent increase laws, coinciding with the conclusion of statewide eviction protections enacted during the COVID-19 pandemic. Here's a breakdown of the latest changes and what landlords in Santa Cruz and Santa Clara counties need to know.
The Tenant Protection Act of 2019, also known as AB 1482, was introduced to regulate rent increases in California. It stipulates that landlords can raise rents by no more than 5% plus the percentage change in the cost of living (CPI), or a maximum of 10%, within a 12-month period. However, the key change that landlords need to be aware of is the adjustment in the CPI threshold.
Historically, the total allowable increase under AB 1482 ranged from 5% to 9%. But due to the surge in inflation, every region in California now meets the criteria for a 10% maximum rent increase. To put this in perspective, as of March 2022, the rate of inflation had spiked to as high as 8.5%.
It's essential for landlords to discern which properties fall under the new 10% allowable rent increase. These regulations pertain exclusively to apartment complexes constructed prior to 2007, provided they aren't subject to local rent control ordinances. Notably, several local jurisdictions within California have their rent control policies in place, encompassing nearly two dozen areas.
AB 1482 comes with exemptions, and it doesn't affect renters in various circumstances, including:
For renters in apartments built after 2007, anti-price gouging regulations might apply, limiting annual rent hikes to no more than 10% during officially declared states of emergency.
To determine the current CPI relevant to your property's location, you can utilize the "Find your CPI" tool available on the California Apartment Association's (CAA) website. By clicking here , you can effortlessly access this resource.
Staying informed about the latest changes in rent increase laws is essential for landlords in Santa Cruz and Santa Clara counties. The updated provisions of AB 1482 underscore the dynamic nature of property management in California and emphasize the importance of compliance with the law's new 10% rent increase cap.