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Rent Increase Facts in California

In California a landlord can raise the rent in any amount unless they live in rent controlled community like San Francisco, Berkeley, and some others. Most of California does not have rent control.

If the amount of the increase is 10% or less, the notice need only be 30 days. If the amount of the increase is more than 10%, the notice must be 60 days. If the landlord gives more than one increase in a year, the notice would have to 60 days when the cumulated rent increase totals go over 10%.

The notice should be served at the tenant's and a copy mailed. This is proper service.

Most landlords give 3% increases on an annual basis when single family dwellings are the subject. Much more and you are inviting your tenant to pack up.

I would suggest that landlords and property managers do a rent survey prior to considering a rent increase so you know what the tenant will be looking at when the increase arrives.

The greater Sacramento Region, including Sacramento, Yolo, Placer, and El Dorado Counties do not have rent control.

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Posted by Robert Machado, CPM MPM Sacramento Area Property Manager and Property Management on 10/28/2008 12:18 AM

Comments (7)

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Originally posted at: Property Management and Investor Information: Rent Increase Facts in California

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7 Comments on Rent Increase Facts in California

OCT

2008

Robert - I'm curious. Have you seen rents in the Sacramento area escalate, since the property value decline of the last year or so?

Myrl, rents have held pretty steady, not much up or down. There is plenty of supply from investors buying foreclosures and from owners that choose not to sell due to the down sales market. There are also plenty of renters since buyers are pretty scarce right now. It all ads up to a pretty even handed rental market. I suspect rents may rise soon, but this economy is very unusual as we all know.

Nice post. I am curious if you have felt any of the "secondary" effects of this economy? While this would normally be a property manager's market with no one buying, we are feeling the effects in that some investors are suffering elsewhere (job loss, etc.) and are therefore looking to tighten their belts by choosing to self manage. For now, the trend is very slight, about 2 in 100, but I am curious to see if the trend escalates as concerns over the economy continue.

OCT

2008

Robert, you make some great points. I have noticed in LA there is even less rental properties moving and not counting the Large Rental Buildings, or the ones that are Luxury, the average small rentals have been decreasing and it takes longer to rent as well.

Thomas: There are always rental property owners that pull out to save money or to try it themselves. My mother used to cut my hair when I was 10, but I tend to use a professional now. I always remind myself that no matter how much knowledge and how many systems, there are always valid reasons accounts are lost. I also know that there are more clients out there that need our service as much as I need them.

Endre: Have not seen much in the way of rent decreases here yet, but that could change.

JUN

Is it legal for a landlord to raise the rent on some units but not others? I am friends with one of my neighbors and just learned that he did not get any rent increase this year, whereas mine was raised by 3 percent. We have both lived here for 5 years. As far as I know, the only difference between us as tenants is that he's on the first floor and I'm on the second.

JUN

It is legal to do that. It is possible the owner feels your unit is worth more.

An owner should not increase a rent in retaliation for a tenant asking for repairs.

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