fair return for rent increase in rent controlled Oakland CA

9 Replies

I bought a fourplex last year in Oakland that I owner-occupy. One tenant I inherited is paying about 30% market rate. I am operating at a loss because of it. Given Oakland's strict rent control laws, how would I go about calculating fair return to petition the RAP board for a rental increase for that unit? 

Has rent been increased in the last several years?  Your'e entitled to bank past rent if there has been no increase.  Otherwise,  not sure the RAP board is going to sympathize with you.  Oakland is extremely tenant-friendly.

I don't believe your're allowed to increase anymore than 10% within a year. 

The 3.5% CPI for Oakland and then the fair market assessment, which you would have to prove would be capped at 10%. 

The property owner is required to provide three things.

  1. Proof of the amount of investment
  2. Evidence of the return from other investments of similar risk
  3. An analysis of the rate of return from the rental property, including any appreciation in the value of the property.

https://www.oaklandca.gov/resources/learn-more-about-allowable-rent-increases

California Law allows rent increases north of 10% if given a 60 day notice however the city of Oakland prohibits this practice. 

Originally posted by @Brian Garlington:

@Ben F.   Maybe I am missing the obvious.........can't you simply "not renew the lease?"   


 

We are talking about the people's republic of California. US laws don't apply there.

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