Sacramento Max Rent Increase for 2022?

[Bei He]

Hi, my dear BiggerPockets folks, 

I have a rental at south Natomas Sacramento (95833 zip code). Have not increasing any rent since covid. Currently rented at $1900 vs. I checked the similar home rent at $2400-$2900. The same tenant has been living there for 3 years. Defiantly this year I need to increase rent but I found this really confusing from city of Sac: https://www.cityofsacramento.o...

Any one clear so in my situation the max increase would be 9%? from $1900 to $2071?

also pasted below for easy read:

2021 ANNUAL RENT ADJUSTMENT MAXIMUM RATE

Effective July 1, 2021, the annual rent adjustment maximum rate will be 9%.

The Tenant Protection Program annual rent adjustment is 5% plus the percentage of the annual increase in the California Consumer Price Index (CPI) for All Urban Consumers for all items, if any, but not to exceed a maximum of 10%.

The annual rent adjustment maximum is determined annually based on the April CPI as calculated by the California Department of Industrial Relations (DIR) and released in mid-June. The DIR calculated the April 2021 CPI at 4%.

A tenant may not waive this limitation on the increase in rent and rent cannot be increased more than once every 12 months. Landlords who increase the rent above the annual rent adjustment maximum and/or more than once every 12 months are subject to administrative penalties up to $25,000.

[Vincent Vazquez]

The rule is 5% per year plus inflation, not to exceed 9% per year. If you like your long term tenant and don't necessarily want to push them away, you can do 5% per year and you will know you are well within your rights and not violating the rule. If you can calculate inflation, and add it to the 5%, but don't break 9% total, you will also be good. I'm a Sacramento Real Estate agent that specializes investment properties so if you have any more questions, feel free to use me as your resource.