December 13, 2019: A great deal of debate is now occurring regarding the specific language in AB 1482. The legislation states the CPI should be taken from the “region” where the property is located. If this term is taken literally, then California is within the “Western Region” as published by the United States Bureau of Labor Statistics. The region is comprised of 8 western states plus Guam. As ReLISTO has been in contact with Mr Chiu’s office its clear this is not what he intended when writing the law and most legal experts believe the law will be modified/correct in 2020. Until then, these same experts are recommending to limit your increase to 7.9% (5% plus 2.9% Western Region CPI) until the law is indeed modified.
October 9th, 2019: With the signing of AB-1482 Tenant Protection Act of 2019, many California rental properties are now subject to rent control. In advance of the State developing an official guide or rent increase table for landlords and tenants, ReLISTO has put together the following chart to give preliminary guidance, based on county, on what the maximum allowable rent may be. Any rent increase since March 2019 may not exceed the Max Allowable Rent Increase rate as seen in the table below. If rent has been increased over this amount since March 15, 2019, an adjustment must be made January 1, 2020
The table below lists the maximum allowable rent increase rates* effective January 1, 2020 for all California counties. It takes into consideration the local Consumer Price Index (CPI) for each county which is then adds this to 5% as allowed by AB 1482. This rule applies to all rent increases imposed after March 15th, 2019.
|AB 1482 Table of Maximum Allowable Rents for California
Be advised this table reflects the maximum increase using CPI data for each. Many legal experts are now recommending the maximum rent be 7.9%
|County||% Increase CPI||Base %||Max Rent Increase Rate|
|San Luis Obispo||3.34||5||8.34%|
This table is for informational purposes only and should not be taken as legal advice.
*The data shown has been calculated using the percent change in CPI from April 2018 to April 2019 as published by the Bureau of Labor Statistics and the California Department of Industry Relations
**March data used when April data is unavailable
October 8th, 2019: Governor Newsom signs AB 1482 into law.
October 8th, 2019: Governor Newsom is scheduled to sign AB 1482 today, October 8th, 2019 in Oakland. The ReLISTO rental calculator will be adjusted to meet the demands of the law and be fully implemented when the bill goes into effect January, 2020. Please be aware that although the bill goes into effect in January, its retroactive to March 2019.
October 4th, 2019: Governor Newsom is set to sign AB 1482 into law over the next few days. ReLISTO will be placing a banner on it calculator to ensure all users are made aware.
September 20th, 2019: California Statewide rent control may be coming. If signed by California Governor Gavin Newsom, AB-1482 The Tenant Protection Act of 2019 will restrict rent increases to a maximum of 5% plus the regional cost of living. Originally we opposed the law since we prefer to allow the market to be free of regulation, but if a law had to be passed, this is a fair and balanced one.
To assist both landlords and residents, ReLISTO will be modifying our current California calculator to accommodate this new law. In the interim here are some key elements of the law that landlords need to be aware of:
- January 1, 2020 Rent Modification. If you raised rent on or after March 2019, you may need to make an adjustment in the amount due for January’s rent.
- Return of Overpaid Rent: If rent was raised since March 2019 for an amount greater than allowed, the owner is not obligated to return the overage.
- Property Types: Law is focused on multi-family units. Condos and detached homes unless owned by a corporation appear exempt.
- San Francisco Owners Banked Increases- Are you a SF landlord who has been banking their rent increases? If you are, then as of January 2020, you can only use up to the yearly maximum as restricted by the State. In the table below, we have listed out the maximum increases currently allowed for San Francisco. Landlords had the option of not taking these increases and banking them till later. For example, if the last increase was in 2013, then the landlord would be allowed in 2019/2020 to ask for a 10.9% increase. Under this new law, this would no longer be allowed.
- March 1, 2019–February 29, 2020 2.6%
- March 1, 2018 –February 28, 2019 1.6%
- March 1, 2017 –February 28, 2018 2.2%
- March 1, 2016 –February 28, 2017 1.6%
- March 1, 2015 –February 29, 2016 1.9%
- March 1, 2014 –February 28, 2015 1.0%
Total Banked 10.9%
We still do not know everything about the law or how/who will be administering it. ReLISTO is in contact with key state figures to make sure we have a complete understanding as we build the next version of the allowable rent increase calculator for California. We will be updating this blog post as things progress.