Is my rent increase policy too generous?

[Carl Graff]

I only have two rentals and this is my current formula for annual rent increase for current renters.

The greater of 4% or 1/4 the difference between current rent and Zillow Estimate not too exceed California AB 1482 which is capped somewhere between about 7% and 10%

A concrete example:

Current Rent $2937

Zillow Estimate $3592

4% = $3054

1/4 Zillow Diff = $3101

5% base + 6% CPI cap at 10% = $3231

In this case the increase would be $3101

Note my rentals are EXEMPT from AB 1482 but I do honor this because I believe it is the right thing to do. Of course if they decide to leave I would try to get the Zillow estimate of $3592 for new renters 

Your thoughts?

Thanks,

. Carl