Signed a 3 Year Lease With My Client but INFLATION is TOO HIGH

[Jeffrey Magenes]

Hi Everyone, I signed a 3 year California Real Estate lease with my client last year before the reported inflation numbers and now I'm stuck. It's getting too costly just for regular labor/repairs when all of my handyman are increasing their rates, but yet I'm stuck in a 3 year lease with my client. 

Is there anything that I can do?

[Greg M.]

Really?! You have a property in Orange County, CA, and the cost of regular labor/repairs is making the numbers no longer work? Perhaps the >15% increase in value since the pandemic can help offset some of the temporary pain?

Suck it up and upon renewal hit him with the the 5%+CPI allowed with a one year lease. If still under market, do the same again the next renewal. Repeat until at market.