AZ HB2793

Limits landlords to rent increases of no more than 5 percent plus the percentage change in cost of living or 10 percent, whichever is less, during any twelve-month period.

Bases the percentage increase limitation on the lowest rent charged for the dwelling unit during the twelve months before the increase.

Exempts dwelling units from the rent increase cap if they are substantially remodeled.

Defines "substantially remodeled" as replacement or substantial modification of structural, electrical, plumbing or mechanical systems requiring a government permit, or abatement of hazardous materials (lead-based paint, mold, asbestos) requiring tenant vacating for at least thirty days.

Excludes cosmetic improvements such as painting, decorating, and minor repairs from the definition of substantial remodel.