How to estimate yearly rent income escalations with rent control?
The City of Berkeley has a rent control policy where you're only allowed to raise the rent each year by 65% of the CPI. Assuming an annual CPI of 3%, sixty five percent would be an allowable increase of 1.95% each year. However, when the tenant moves out, the rent level for the new tenant can start at market value again.
My question is, what's a good way to estimate the average rent increase per year for a multifamily property? Thanks.