Has anyone on here done a rent increase petition for fair return?

2 Replies | Oakland, California

Hey Oakland Investors, 

As you know, or are finding out now, the Oakland City Council is going to vote to eliminate the rent control exemption for duplexes and Triplexes on Tuesday February 5th 2019. 

I've got a unit in my duplex that is subject to rent control and is rented out about 45% of market rate rent. If Oakland City Council votes to eliminate the exemption (which they most likely will) then that unit is going to stay rented very far below market rate.

There's a handbook from the City of Oakland that mentions Fair Return rent increases: 

Necessary to Meet Constitutional Fair Return Requirements: A landlord may submit evidence to show that without the requested increase he or she is being denied a fair return on the investment in violation of the Constitution. To prove entitlement to this increase, a landlord must show that the return on the investment is less than the return that would have been received for an investment of similar risk. At a minimum, proof of the amount of investment, evidence of the return from other investments of similar risk and an analysis of the rate of return from the rental property, including any appreciation in the value of the property, are required.



I'm wondering is there anyone on here that has done this before? Do you know anyone that petitioned for a rent increase to get a fair return?

Questions for you, if you're out there: 

  • What was the process like generally?
  • What forms did you have to prepare and submit?
  • Did you have to do an appraisal to measure appreciation?
  • How did you calculate your rate of return?

Rent your property in Oakland out to a tenant that has a Section 8 Voucher. Even though Oakland is rent controlled, if the tenant has their rent subsidized by the government then you are not restricted to following rent control. All my rentals here in the Bay Area, including Oakland, have Section 8 tenants in them.