A landlord in Los Angeles owns a 15-year-old apartment building with 8 units. Under California's AB 1482 (Tenant Protection Act), what is the maximum annual rent increase the landlord may impose on existing tenants?
Correct Answer
A) 5% plus the local Consumer Price Index (CPI) change, but not to exceed 10% total
Under California's AB 1482 (Tenant Protection Act of 2019), rent increases for covered properties are limited to 5% plus the percentage change in the local area Consumer Price Index (CPI), with an absolute cap of 10% annually. This statewide rent cap applies to most residential properties that are 15 years or older.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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