Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 6 years ago on .

User Stats

10
Posts
1
Votes
Sean Campbell
  • Rental Property Investor
  • Red Deer, Alberta
1
Votes |
10
Posts

BRRRR in Rent Controlled Areas

Sean Campbell
  • Rental Property Investor
  • Red Deer, Alberta
Posted

I live in a rent controlled area where you are only allowed to increase rent 1.5% per year. To increase the rent more than that requires an application and a hearing to determine how much more you can raise it; none of which can be done until you actually own the property and have done the renovations (and they are very strict about it). This makes it very difficult to plan a BRRRR as I do not know how much they will allow my rents to raise ahead of time.

I have gotten around this a few times so far by buying vacant duplexes or else turning single families into rental and riding the appreciation wave that's hit the area the last year. I was able to build up a fair bit of equity in my first 6 places in the last year but it's looking as though the market is starting to mellow out and duplicating that will be difficult without being able to change rents.

What strategies have been most effective in rent controlled areas?