Tenant renewed at a higher rate than 5%+CPI in June. Will it revert back to what they were paying pre-March 15th even if they signed a year long lease? (50+unit apartment owned by an LLC)
Here is my example:
Tenant lease from 6/1/2018-5/31/2019 at $1,000
Lease renewed from 6/1/2019-5/31/2020 at $1,200
This is a 20% increase. New law would allow an increase to approx. $1,080. But since the lease was renewed at this 20% for a whole year before the law was passed, will it stay at this rate come January 1st 2020? Or will it revert back to $1,000 + 5%+CPI on January 1st?
If your units are covered by the legislation, it will revert back to 5% plus CPI. The bill is retroactive dating back to March 1, 2019 I believe. Make sure to adjust rents immediately on January 1st, as tenants will no longer be lawfully forced to pay above the allowable increase in 2020. It sucks, I know.
Pretty much same problem I am having. What about when we revert back to the new allowed rents in January when can we raise them again? What month can we raise the rent again after January 1st because we are going back to March 15th 2019. Can we raise rent again March 15th 2020?