LA RSO deal: Lease says 3 people, 7 live there - can I raise 40%?

5 Replies

Can I raise rents 40% for the 4 excess people, or will some judge somewhere say I bought the property as-is can't do that. 

to be clear, I'm currently in escrow and seller raised rents 10% for 1 excess person in 2017. so maybe I can only do 30%? I just don't know why the seller didnt raise rents 40% in one go; he clearly knows about the 10% rule?

If they are on a lease you can't raise it. If they are month to month you can raise it but only 10% per year. I would be cautious about raising the rent based on the number of residents you might encounter a Fair Housing Issue.

You need to take the time to learn all your state landlord tenant regulations before you do anything else. You are operating a business and are responsible for knowing the laws governing your business. Do nothing until you know the law so that you do not end up being taken to court by a tenant.

Never start a business without learning the law.

Seems like the answer is YES. 

G. (Amended by Ord. No. 181,744, Eff. 7/15/11.) For a rental unit which has an additional tenant joining the occupants of the rental unit thereby resulting in an increase in the number of tenants existing at the inception of the tenancy:

(a) The landlord may increase the maximum rent or maximum adjusted rent by an amount not to exceed 10% for each additional tenant that joins the occupants of the rental unit, except as follows: (i) This Subsection shall not apply if the landlord had actual or constructive knowledge of the additional tenant's occupancy of the rental unit for more than 60 days and has failed to notify the tenant of the increase pursuant to this Subsection; (ii) If the additional tenant joined the occupants of the rental unit prior to the effective date of this amendment and the landlord had actual or constructive knowledge of the additional tenant's occupancy of the rental unit prior to the effective date of this amendment, the landlord shall not be able to increase the rent pursuant to this Subsection unless the landlord had notified the tenant of the increase within 60 days of the effective date of this amendment; (iii) This Subsection shall not apply for the first minor dependent child (or first minor dependent children of a multiple birth) added to an existing tenancy.
Originally posted by @David Gonzalez :
If they are on a lease you can't raise it. If they are month to month you can raise it but only 10% per year. I would be cautious about raising the rent based on the number of residents you might encounter a Fair Housing Issue.

Where does it say only 10% per year? What makes you think that?

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