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California Homeowners: Yes, you can increase rent up to 10%
California Homeowners: Yes, you can increase rent up to 10%

Adding a rent increment will help your cash flow grow.

Poplar Team avatar
Written by Poplar Team
Updated over 2 years ago

If your rental home is located in California, you can choose a rent increment of up to 10%.

Why up to 10% only?

California has a statewide rent increase law or the AB 1482 (the California Tenant Protection Act of 2019). This law limits your rent increment to 5% plus the change in inflation from April 1 of the prior year to April of the current year. This change in inflation or inflation rate is measured by the Consumer Price Index (CPI-U) for the area in which your rental home is located.

Meanwhile, if your region doesn’t have its local CPI, you can use the California CPI.

To keep it short:

Your rent increment must include these two numbers:

  1. Up to a 5% rent increase percentage

  2. Your county’s inflation rate this year

Example rent increment:

Let’s say your current rent is $1,600.

You can add a 5% rent increase, plus your local inflation rate (ex. 3.3%) this year.

5% + 3.3% = 8.3%

Your final rent increment is 8.3% or $133.

So, your new rent is $1,733.

How to add rent increase percentage to your lease on your dashboard

  1. Go to Properties

  2. Under the Rented tab, select a property that needs a lease renewal

  3. Next, select Renew Lease Now

  4. In the Rent Increase section, select Others

  5. Enter your desired rent increase. (ex. 8%) Take note if your property is located in California, your rent increase percentage should not exceed 10%. You can also add a rent increase only once a year.

Where to find your local inflation rate

Check this website to find your local inflation rate.

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