Belmont, CA · Member since 2016 · 4 posts · 0 votes
Hello,
I bought a property (rent controlled units) at Hayward. The previous owner did not increased rent for years. It looks the code only allows 10% annually for banked rents but tenant still has the right to petition.
Is there anyone have experience of increasing banked rent? Or any lawyer recommended to do it?
Thanks
Jack
Investor · San Francisco, CA · Member since 2010 · 910 posts · 889 votes
10y
Also, a good local property manager in the area would also be able to give you tips or even handle this situation for you. Local is key for both the PM and lawyer depending on what you want to do. No one should ever assume that rental control is the same everywhere because its not and it will get you into trouble assuming so.
Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
10y
The term banked rent threw me, but - -
San Francisco Tenants: You need to understand that your landlord can, at any time, make up for years that he did not increase your rent by “banking” the annual allowable increases and charging them all at once. California Civil Code ?? 827 requires a landlord to give you a 60-day notice for such an increase if that cumulative increase is over 10% of your existing rent.
Banked increases will almost always be imposed by new owners. If your building has recently been sold and the old landlord has not increased the rent for awhile, plan on a banked increase. For that matter, all San Francisco tenants should always plan for a banked rent increase.
Investor · San Francisco, CA · Member since 2010 · 910 posts · 889 votes
10y
Hi Jack,
Rent control in every city in the Bay Area is slightly different so I would look to the laws and regulations of Hayward to see what is lawfully feasible. You should find out from the prior owner when was the last time rents were increased on each tenant. Then you need to find out from the city what the appropriate increases for each year are. For some cities in the bay area, you can only go back a few years. If you feel uncomfortable with raising rents via banked rents, I would find a good real estate lawyer that knows their stuff for the Hayward area. You could use them for one unit and learn from them or use them for all units knowing that everything was done lawfully. It's up to you on how you proceed, good luck!
Investor · San Francisco, CA · Member since 2010 · 910 posts · 889 votes
10y
Also, a good local property manager in the area would also be able to give you tips or even handle this situation for you. Local is key for both the PM and lawyer depending on what you want to do. No one should ever assume that rental control is the same everywhere because its not and it will get you into trouble assuming so.