Rental increase in Palm Springs for long term renters

Riverside, California
General Landlording & Rental Properties
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Rental increase in Palm Springs for long term renters

Swaga Deb
Investor · Silverlake, CA · Member since 2020 · 30 posts · 4 votes

Hello All,

I have a long term rental in Palm Springs with amazing tenants who have been there for 2 years. It's time to raise the rent but I'm having a hard time finding out how much I can raise it? Do you know and are there any city or county web resources you can recommend? I keep looking online and finding a million different answers. (I've also  called the city of Palm Springs city government and left messages with their housing department)

Wondering if anyone has some info on this topic. Thanks.

SD

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Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y

Check Craigslist, Zillow, Rent-o-Meter, etc.

We’ve found the best way to raise rent is:

  • Determine market rent
  • Share the proof with the tenant
  • Tell the tenant, given your rent is $x and market rent is $y, what do you think if a fair increase?
  • Often, they may volunteer a higher amount than you were hoping for.
  • Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.
  • Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb them.

ALWAYS get an increase or something of value annually or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.

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  • Tiffany Johnson
    Investor · Olympia, WA · Member since 2014 · 23 posts · 10 votes
    2y

    I have a long term rental in La Quinta. I’ve been managing it myself, but starting to look for a property manager for multiple reasons (one being I’m not keeping up with rent increases). Was told the maximum increase is 10% per year. It’s a neighbor city, so probably not the exact answer you’re looking for, but thought I’d share. 

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  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    Check Craigslist, Zillow, Rent-o-Meter, etc.

    We’ve found the best way to raise rent is:

    • Determine market rent
    • Share the proof with the tenant
    • Tell the tenant, given your rent is $x and market rent is $y, what do you think if a fair increase?
    • Often, they may volunteer a higher amount than you were hoping for.
    • Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.
    • Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb them.

    ALWAYS get an increase or something of value annually or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.

    Logical Property Management4.9453 Reviews
    WebsiteView Page
    1Reply
  • Swaga Deb
    OP
    Investor · Silverlake, CA · Member since 2020 · 30 posts · 4 votes
    2y
    Thank you for this information. It's really helpful.






    Quote from @Michael Smythe:

    Check Craigslist, Zillow, Rent-o-Meter, etc.

    We’ve found the best way to raise rent is:

    • Determine market rent
    • Share the proof with the tenant
    • Tell the tenant, given your rent is $x and market rent is $y, what do you think if a fair increase?
    • Often, they may volunteer a higher amount than you were hoping for.
    • Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.
    • Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb them.

    ALWAYS get an increase or something of value annually or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.


    0Reply
  • Swaga Deb
    OP
    Investor · Silverlake, CA · Member since 2020 · 30 posts · 4 votes
    2y
    thank you for this information. Is there a web site other page listed the percentage you can raise? I left a message with the city Gov of PS so just waiting for feedback.



    Quote from @Tiffany Johnson:

    I have a long term rental in La Quinta. I’ve been managing it myself, but starting to look for a property manager for multiple reasons (one being I’m not keeping up with rent increases). Was told the maximum increase is 10% per year. It’s a neighbor city, so probably not the exact answer you’re looking for, but thought I’d share. 


    0Reply
  • Alison Brenner
    Member since 2022 · 79 posts · 72 votes
    2y

    Hi Swaga,

    If your property is subject to AB1482, then the maximum allowable percentage increase is 9.6% for Riverside County. CPI numbers change annually on Aug. 1st. If your property is not subject to AB1482, then I would stick with the 10%. You can go higher but be cautious. I read or heard something about anti-price gouging laws applying even with AB1482-exempt properties. 

    I wish I could suggest a great government resource. I have a California Apartment Association membership and rely heavily on it. Honestly, I think you are doing the best you can by cross-checking sources and contacting government resources. Our tenant-landlord laws are ridiculously complex.

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  • Swaga Deb
    OP
    Investor · Silverlake, CA · Member since 2020 · 30 posts · 4 votes
    2y

    hey Alison, 

    Thank you so much for the reply and guidance. I will def do a  bit more research but this is super helpful!

    Swaga

    0Reply
  • Brandon Carlson
    Real Estate Consultant · Glendora, CA · Member since 2019 · 314 posts · 95 votes
    2y

    According to the Rent Control laws in Southern California

    - 75% of the increase in CPI

    https://www.palmspringsca.gov/government/departments/housing...

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