New Santa Barbara County Rent Cap, 9%

Effective 9/1/2021

5+4% CPI => 9% 2021 RENT CAP

The rule in California since January 1, 2020 is that non-exempt residential landlords may increase rents over any twelve month period by no more than five percent plus the applicable consumer price index, but never to exceed ten percent. The applicable consumer price index looks at price increases on an April-to-April calendar year basis. 

 The April-to-April increase in prices from 2019 to 2020 was one percent. Therefore, the maximum amount that we can raise rents on tenants of non-exempt residential units is presently six percent, which is five percent plus one percent and does not exceed ten percent.

 As part of SB 91, which was a Covid related law passed in late 2020 impacting residential housing in California, the legislature included a technical fix to clarify that the April-to-April numbers would take effect on August 1 of the following year and be used for the following twelve months. The reason for this is because April inflation numbers are not reported until late June. Therefore, if landlords get those numbers in late June then they can use the numbers by serving notices of rent increase by July 1 to take effect on August 1. Without this legislative fix, last year it was confusing from April to late June to know how much rent could be raised because the inflation numbers were unavailable and the law was unclear on what to do in that circumstance”. (California West Property Management.)

CPI CALCULATION

The DEPARTMENT OF INDUSTRIAL RELATIONS  just released APRIL CPI OF 294.274. The new April 2021 CPI is= (294.274-283)/283= 3.98%. Per 1947.12.B II (iii), CPI is rounded to nearest 1/10 of 1%, (see California Code below) thus  CPI = 4%

THUS => 2021 SANTA BARBARA COUNTY RENT CAP = 5+4% CPI =>  9% 2021 RENT CAP

_______

For a list of all California CPI info, go to:  https://www.dir.ca.gov/oprl/CPI/PresentCCPI.PDF