June 2023 Newsletter

Summertime is almost officially here! We hope you’re enjoying warmer weather and some summer fun. Below outlines our Newsletter topics for June of 2023.

How to calculate proper rent increases for rent controlled properties subject to AB 1482

To calculate the proper CPI (Consumer Price Index) increase for your AB 1482 controlled property in California, you need to follow these steps:

  1. Determine the applicable CPI index: The California Department of Industrial Relations publishes the annual CPI index for various regions in California. Identify the CPI index that corresponds to your property’s location.
  2. Determine the baseline rent: The baseline rent is the rent amount charged on March 15, 2019, or the rent amount in effect on the date the tenancy began, whichever is lower. Make sure you have this information available.
  3. Determine the current rent: Identify the current rent amount you are charging for the property.
  4. Calculate the allowable rent increase: Subtract the baseline rent from the current rent. The difference represents the total dollar increase in rent since the baseline rent.
  5. Determine the percentage increase: Divide the dollar increase calculated in step 4 by the baseline rent. Multiply the result by 100 to convert it into a percentage.
  6. Check the maximum allowable increase: Refer to the CPI increase caps set by AB 1482. AB 1482 allows a maximum annual rent increase of 5% plus the local rate of inflation (CPI), not to exceed 10% in total.
  7. Calculate the CPI increase: Multiply the baseline rent by the maximum allowable increase percentage determined in step 6. This will give you the maximum allowable CPI increase for your property.

Let’s talk about Emotional Support Animals and Service Animals

In California, both Emotional Support Animals (ESAs) and Service Animals are protected under different laws when it comes to rental properties. The laws that govern these animals are the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA), respectively. Here’s how they are handled:

  1. Emotional Support Animals (ESAs):
    • The Fair Housing Act (FHA) allows individuals with disabilities to request reasonable accommodations for their ESAs in housing, including rental properties.
    • ESAs do not require specialized training, but they provide emotional support and companionship to individuals with mental health conditions.
    • To qualify for an ESA accommodation, the tenant must have a disability as defined by the FHA, and the ESA must alleviate one or more symptoms of their disability.
    • The tenant needs to provide a letter from a licensed healthcare professional, stating that they have a disability and that the ESA is necessary for their well-being.
    • Landlords are generally required to make reasonable accommodations for ESAs unless it causes an undue burden or fundamental alteration to the property.
  2. Service Animals:
    • The Americans with Disabilities Act (ADA) protects the rights of individuals with disabilities who use Service Animals.
    • Service Animals are specifically trained to perform tasks that mitigate the person’s disability.
    • Unlike ESAs, Service Animals are not limited to housing accommodations and are allowed to accompany their owners in all public places, including rental properties.
    • Landlords cannot charge additional fees or deposits for Service Animals.
    • They may only ask two questions: (a) whether the animal is required because of a disability, and (b) what tasks or work the animal has been trained to perform.
    • Documentation or certification is not required for Service Animals, and landlords cannot ask for proof of training.
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