Real Estate Broker · Oakland, CA · Member since 2015 · 36 posts · 26 votes
9y
@Susan O. I totally agree! We all have to become politically aware and active to protect not only our own personal interests but for all small business & property owners throughout the state. I attended a meeting a week or so ago and was amazed (and somewhat appalled) at the number of tenants and tenant rights groups that were there voicing their "entitlement" theories/feelings. I feel so strongly about these issue that I won't go into detail or on a personal rant here...
I do hope more California investors & rental property owners will become aware of the current "attack" on their business/livelihood.
Real Estate Broker · Oakland, CA · Member since 2015 · 36 posts · 26 votes
9y
More California cities will be dealing with rent control along with stricter rent controls in cities like Oakland that already have it if AB 1506 is successful as it's currently written...its really sad too because repealing Costa Hawkins and/or Ellis Act (separate bill that I can't recall # off top of my head) is not going to solve the lack of affordable rental housing or the growing homeless crisis...IMHO. Check it out.
More California cities will be dealing with rent control along with stricter rent controls in cities like Oakland that already have it if AB 1506 is successful as it's currently written...its really sad too because repealing Costa Hawkins and/or Ellis Act (separate bill that I can't recall # off top of my head) is not going to solve the lack of affordable rental housing or the growing homeless crisis...IMHO. Check it out.
Landlords, Investors, Realtors all have to become politically active. This AB 1506 could put us into a recession. How on earth can you get a cash flowing property without raising rents to reasonable market rates!!!
Landlords actually have all the rights. I've invested in other states. California is almost anti business/ anti landlord. It's like they want the streets to become poor and violent. They scream gentrification if you paint a building, fix a roof now days. Look what's happening in Los Angeles- Highland Park, Long Beach, Inglewood. The tenant groups funded by big lobbyists
Real Estate Broker · Oakland, CA · Member since 2015 · 36 posts · 26 votes
9y
@Susan O. I totally agree! We all have to become politically aware and active to protect not only our own personal interests but for all small business & property owners throughout the state. I attended a meeting a week or so ago and was amazed (and somewhat appalled) at the number of tenants and tenant rights groups that were there voicing their "entitlement" theories/feelings. I feel so strongly about these issue that I won't go into detail or on a personal rant here...
I do hope more California investors & rental property owners will become aware of the current "attack" on their business/livelihood.
@Susan O. I totally agree! We all have to become politically aware and active to protect not only our own personal interests but for all small business & property owners throughout the state. I attended a meeting a week or so ago and was amazed (and somewhat appalled) at the number of tenants and tenant rights groups that were there voicing their "entitlement" theories/feelings. I feel so strongly about these issue that I won't go into detail or on a personal rant here...
I do hope more California investors & rental property owners will become aware of the current "attack" on their business/livelihood.
Yes what's unfortunate about this sort of entitlement feeling is a lot of the youth-- 20s-30s feel that housing is a 'right' like it should be 'socialized'. They don't understand the thousands of hours spent working to save up for that first down payment then paying off the property (while making $12,000 roof repairs and worse) then getting capped on possible rental income. If these tenant groups get their way there will be a collapse and eventual foreclosures etc leading to blight and a lot of neighborhoods failing. Home owners, property owners will all be negatively effected.
When there's a huge capital improvement like having to replumb the building with copper then you can be hit with $20-30k in repairs. If you can't spread that out over rent raises you will not be able to pay the mortgage.
We need to all get active especially against this AB 1506. The tenant groups are all ahead of us. They are backed by some big money interest groups.
Look at their promotional materials. Using children to make rent control seem like it's good for cities. It's actually bad overall for local economies according to about 90% of economists.
I have a tenant that moved in June 15, 2016, and I would like to increase his rent as of July 1, 2017
The CPI starting July 1, 2016 was 2%
But the new Oakland CPI comes out in July 1, 2017.
So
1) Can I increase his rent on July 1, 2017 by 2% even though at that point it will be the previous year's CPI?
2) Do I have to wait until I see the CPI for 2017 to know how much I can raise it? And then wait until September 1, 2017 to raise it?
3) At that point can I use the 2% from 2016 as a banked increase and increase it by 4% (Assuming 2017 is 2% also)?
Daniel,
Unfortunately, you're in a sticky situation, because the 2.0% rate will no longer be valid as of the effective date of the rent increase, July 1, 2017. You can see from my copy and paste from the Oakland RAP website that this is the case with the July 2016 cutoff. I'm not sure what date they make the CPI announcement for rent increases from July 1, 2017 to June 30, 2017. But at least wanted to give you the info, even if it's not fun :-/
"The annual CPI rate for rent increases effective July 1, 2016 through June 30, 2017, is 2.0%. The rate is not applied to rent increases that take effect earlier than July 1, 2016." http://rapwp.oaklandnet.com/issues/rent-increase/
I think your safest bet is to wait until the CPI increase then serve the notice with the new rate. Do what you can to get the new CPI rate as soon as you can since there is the 60 day notice. You don't have a banked increase on the unit, the tenant moved in in 2016.
@Maya Clark Yes, we do need to become more politically active. The strong anti-development policies and anti-landlord policies hurt the city and renters in the long-run. I think that it is going to take some education and outreach to decision makers as a friend and partner rather than an angry voice to move things in the right direction.
I would think that the city, struggling with more things to pay for than they have money, would sympathize with buildings facing similar situations. Hostile policies towards development just push people to other cities to do their building.
Here are some links about the harm rent control does: