What laws apply to limit rent increases?
Generally, there are three types of laws that may limit rent increases: state law under the Tenant Protection Act "TPA"; the state anti-price gouging law during a declared state of emergency; and local city or county rent control ordinances and rent freeze moratoriums. If more than one law applies, an owner must comply with the most restrictive law.
What is the state law that applies to rent increases?
The TPA, limits rent increases to 5% plus inflation as indicated by the applicable Consumer Price Index (CPI) up to a maximum of 10%. Not every property is subject to the TPA, and there are exemptions. (See below). Depending on where the property is located, different CPIs are used. A property owner is limited to the rent cap maximum for any 12-month period.
What is the maximum rent increase for properties subject to the TPA for rent increases that take effect between August 1, 2022, and July 31, 2023?
10% for all properties. The maximum rent increase under TPA properties is 5% plus CPI, up to a maximum of 10%.
