This article was posted on Tuesday, Aug 01, 2023

The announced maximum allowable increases for 2023, applicable to properties covered by AB 1482 (The California Tenant Protection Act) will go into effect August 1, 2023, and will be in place until the end of July, 2024.

The maximum allowable increase is calculated by adding five percent to the Consumer Price Index for the respective area of the properties. Please keep in mind that rent can only be increased twice in a twelve-month period for continuously occupied units, as long as the total does not exceed the maximum allowable amount.

The figures  below represent the maximum rent increase allowed.  If the property is not in one of these urban areas,

you should utilize the California CPI.

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IMPORTANT – PROPER SERVING OF AB 1482 NOTICES

For existing tenants, you must serve the proper AB 1482 notice to your tenants. If the property is Exempt from AB 1482, and tenants have not been served the  proper Exemption Notice, the housing provider can lose the exemption. If a property is Subject to the law and the tenants have not been served, a rent increase can be denied. Use AOA form 202E (Exempt from AB 1482) OR 202S (Subject to AB 1482) on our forms list. 

For new tenants, if you are using the AOA lease, be sure to check the correct box on Item 39 of the lease. If you are NOT using the AOA lease, you must serve an  addendum to show the status of your property. You will use either AOA form 202E (for those Exempt from)  OR AOA form 202S (for properties Subject to) AB 1482.

 WHAT PROPERTIES ARE EXEMPT FROM AB 1482?

  • Properties subject to more restrictive local rent control laws, including rent increase caps
  • Privately owned single family homes that have no other rented dwellings on the parcel
  • Privately owned condominiums
  • Privately owned duplexes where the owner has lived in one of the two units since January 2020
  • Housing constructed in the past 15 years
  • Affordable housing subject to a deed restriction, or agreement that provides subsidies for very low, low, or moderate-income households
  • Dormitories for both colleges and K-12 schools
  • Housing associated with a nonprofit hospital, religious facility, extended care or licensed residential care facility
  • Hotels
  • Single-family homes, if owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an ADU or a Jr ADU

Still have questions? Give us a call at (800) 827-4262. Our advisors are ready to help.