fair return for rent increase in rent controlled Oakland CA
11 Replies
Ben F.
from Oakland, CA
posted almost 2 years ago
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?
Calvin Kwan
from Oakland, California
replied almost 2 years ago
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.
Ben F.
from Oakland, CA
replied almost 2 years ago
I'm able to bank a little bit. Oakland RAP board allows for "fair return" but doesn't specify details.
Kam T.
from San Francisco, CA
replied almost 2 years ago
Try checking previous rent board cases for fair return (link below). Looks like there have only been a handful since the 90s. If you go to the rent board in person or call you should be able to get all of the details and outcome of these cases, which may be a good start.
Ben F.
from Oakland, CA
replied almost 2 years ago
Thx KT
Medi Sarwary
from Pleasanton, CA
replied over 1 year ago
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.
- Proof of the amount of investment
- Evidence of the return from other investments of similar risk
- 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.
Brian Garlington
Realtor from Oakland CA &, Cleveland OH
replied over 1 year ago
@Ben F. Maybe I am missing the obvious.........can't you simply "not renew the lease?"
Ben F.
from Oakland, CA
replied over 1 year ago
It's a month to month lease, that isn't possible.
Andrew B.
from Rockaway, New Jersey
replied over 1 year ago
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.
Brian Garlington
Realtor from Oakland CA &, Cleveland OH
replied about 1 year ago
Jess Thompson
Rental Property Investor from Oakland CA
replied 9 months ago
@K T. Wow.. that's a terrifying case list. Who knew!
Brian Garlington
Realtor from Oakland CA &, Cleveland OH
replied 7 months ago
Well now with the Stay in Place you can't even think about evicting them.....or raising the rent. Did you not get the financials before you bought the place?