Investor · Miami FL / DMV · Member since 2016 · 70 posts · 27 votes
Hello! Everyone has been complaining about recent trash hikes, in particular. Does anyone know what the rules are as far as passing utility cost(s) on to the tenant? Trash, Water etc. Oakland CA.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
9y
@Victoria S. typically the first step is to look at your rental agreement and see what that says. If the agreement allows you pass along the costs then typically you can. If it does not then you have to wait for the next cycle of your rental agreement (lease renewal or month to month reset date) and then add the charges. If you are under rent control or some other crazy local law then you should reach out to a local attorney that specializes in representing landlords and seek their advise.
Investor · Houston, TX · Member since 2015 · 176 posts · 121 votes
9y
For my San Mateo rentals, the trash bill has gone up significantly more than I can raise the rent (by percentage). I just had to wait till the next lease. There is no rent control, but for many years that didn't mater as the market would only allow so much increase.
Hello! Everyone has been complaining about recent trash hikes, in particular. Does anyone know what the rules are as far as passing utility cost(s) on to the tenant? Trash, Water etc. Oakland CA.
Victoria,
Trash and utilities are just one of many expenses that are part of your operating P&L, and I'm not aware of anything that would allow you to pass those costs on beyond normal rent control rules in Oakland. Yes, they have been going up fast. There's something about if you are getting an "unfair" return, you can petition, but haven't heard of any successful attempts. Someone also tried to sue the city of Oakland over the increase and requiring everyone to use them. But don't think that has gone anywhere. Cost of doing business.
You can pass on 1/2 of the rent board fee still I believe (check after election). Banked rents. Capital pass-throughs. But no provisions for increase in utility/trash costs I am aware of.