Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
9y
1. Does the 5% max rent increase (8% if substantially rehabbed) apply to ALL SJ apartments or just those build prior to a certain year?
- 5% max rent increase annually with up to 8% increase includes capital improvement pass through. Rent control is only applicable to 3+ unit buildings built prior to September 17, 1979. Duplexes are exempt.
2. Is the 5% max rent increase annual or by period? Meaning, could I raise rents on a tenant every month in a month-to-month lease?
- 5% max rent increase annually. If you skipped raising rent one year, you could raise rent up to 10% the next year (every 2 years). If you didn't raise rent nor did you do a capital improvement pass through, you could also raise rent plus capital improvement pass through up to 17% in year 2.
3. Can I terminate a tenant's month-to-month lease for the purpose of me moving myself into one of the units (hence househack)?
- I believe San Jose hasn't passed "just cause eviction" so yes, you can. If you serve a 60-day notice, the tenant may appeal with the Housing Department. If you serve a 90-day notice, then there's no appeal. You may want to send an email to the CSJ Housing Department to confirm about just cause eviction. However, it's justify in your scenario so more than likely you'd win. The CSJ is more landlord friendly than other cities north of us.
Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
9y
1. Does the 5% max rent increase (8% if substantially rehabbed) apply to ALL SJ apartments or just those build prior to a certain year?
- 5% max rent increase annually with up to 8% increase includes capital improvement pass through. Rent control is only applicable to 3+ unit buildings built prior to September 17, 1979. Duplexes are exempt.
2. Is the 5% max rent increase annual or by period? Meaning, could I raise rents on a tenant every month in a month-to-month lease?
- 5% max rent increase annually. If you skipped raising rent one year, you could raise rent up to 10% the next year (every 2 years). If you didn't raise rent nor did you do a capital improvement pass through, you could also raise rent plus capital improvement pass through up to 17% in year 2.
3. Can I terminate a tenant's month-to-month lease for the purpose of me moving myself into one of the units (hence househack)?
- I believe San Jose hasn't passed "just cause eviction" so yes, you can. If you serve a 60-day notice, the tenant may appeal with the Housing Department. If you serve a 90-day notice, then there's no appeal. You may want to send an email to the CSJ Housing Department to confirm about just cause eviction. However, it's justify in your scenario so more than likely you'd win. The CSJ is more landlord friendly than other cities north of us.
It looks like some rent control will spread in California but the apartment associations are using studies and economic consultants who are unbiased to prove that it is bad when rent control is broadly placed in cities.
Rent control seems to work for a few renters to keep them in but eventually ends up in less housing stock and leads to housing crisis and underbuilding.
Here's a recent independent study done that you should forward to local politicians and state representatives:
they'd probably have less housing crisis if they let the supply demand market take effect-- then there would have been more building of newer housing in the city and it wouldn't be so slummy like it is in some east and north parts of Boston city and the county