Rent regulation & tenants
Banked rent increases
A local rent-ordinance feature letting an owner carry forward unused annual increases and apply them later, usually with a cap; AB 1482 has no banking.
Definition
Banking is a local rent-stabilization feature that lets an owner who skips or under-applies an annual allowable increase carry the unused amount forward and apply it in a later year. Ordinances that permit it typically cap how much banked increase can land in any single year; others prohibit banking entirely, making each year's allowance use-it-or-lose-it.
The statewide cap in Civil Code § 1947.12 (AB 1482) does not bank: the 5% + CPI limit is measured against the rent in effect over the preceding 12 months, so a skipped year's headroom does not accumulate.
Why it matters in an underwrite
In a rent-control city, banked increases are an acquirable asset: a seller who never took the annual adjustment may hand the buyer years of accumulated allowance that can be applied — within the ordinance's per-year cap — without waiting for turnover. Confirm the ordinance's banking rules and the unit-by-unit increase history during diligence (registry filings and estoppels are the evidence), because assuming banking where the ordinance forbids it overstates regulated growth from day one.
Sources & related guides
See also
See the term in the law itself
Read the controlling text in the Code Library, or ask the AI how it applies to your project.
Last reviewed 2026-07-29. General information, not legal advice.