All Forum Posts by: Ramki D.

How much rent can be increased legally on a SF? I have done some research and found out 5% + CPI (1%)=6%. Is my understanding correct? Thanks in advance

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Sacramento, California

Originally posted by @Greg S.:

It sounds like you already are in the ballpark with market data. There can be differences between market data and code requirements. Rent board code requirements are often the worst written of all code requirements. Understanding can be difficult to achieve and even more difficult to retain over time.

My experience in California leads me to conclude that the most important knowledge you will receive will be from experts working full time within the jurisdiction of interest.

A great way to become aware of and meet those experts is to join a regional rental housing association. For example, in Berkeley, there is BPOA. Across the East Bay, there is the EB RHA. Sacramento likely has similar organizations. Join and attend a few meetings to judge for yourself whether membership is worthwhile.

In California, depending on your jurisdiction, you must solicit opinions and advice from your LOCAL experts rather than from us who are far afield.

Thanks for sharing the details. I didn't hear those association names earlier. I will explore them.

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This is what I found in Google

How much can my rent be increased under the City of Sacramento Tenant Protection Ordinance?

A tenant’s rent may only be increased once every twelve months up to 5% plus the annual increase in the California Price Index (CPI), the sum of the two not to exceed 10%. Sacramento, Cal. Mun. Code § 5.156.050. Effective July 2020, the annual rent adjustment maximum rate is 6% as the current CPI is 1%. "

looks like max is 6%(130$) max increase legally

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California - Sacramento. Property zip code 95834. It's single family home

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California

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Hello Landlords,
I am planning to manage this rental from next lease renewal (3rd renewal, starts from March 1st, 2022 - Feb 28th, 2023) onwards. Current rent is 2180$ (tenant pays all utilities approx ~150-200$). This is a brand new 2020 home, 1932sq.ft, 4 bed (down stairs bed room with full bath) and 3 bath.
1st Year - 2020, March, 1st - 2150$
2nd Year - 2021, March, 1st - 2130$ (decreased 20$ due to pandemic)
3rd Year -2022, March, 1st - How much rent I can reasonably increase? all the homes in this area are listed for 2800$ + utilities (I have used online rent estimate tools like Avail,Rent-O-Meter, Zillow)

I am planning to increase 150$ per month which brings monthly rent to 2280$. $150 is too low or too high? any thoughts or suggestions really help me.

Thanks in Advance - RK

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Originally posted by @Phillip Bradrick:

@Ramki Dirisala

Great questions. All the sub markets around Raleigh and Durham have appreciated quickly over the last few years. To answer the question you are asking I would think about what markets have the most continued up side and how markets would fare in a market pull back. Cary and Wake Forest are bedrock higher end communities. Holly Springs is blending into the greater Cary market and should continue to see solid appreciation as well as fare well if the market shifts. I would lean towards Holly Springs.

Garner and Clayton are areas you can get better cash flow but I would say that the long term appreciation potential would be lower.

If you need insight on rents for a specific property feel free to DM me as we manage hundreds of rentals across the triangle.

Thanks Philip for your in sights. I will DM you to find the details on property management.

1 Vote

I am from bayarea and exploring out of state investment options.One of my friend moved to NC recently and he is recommending to invest in either in holly springs or Fuquay-Varina. properties in holly springs went up in last one year. i have seen some properties in FV which are below < 350k range and rents around 1500-1800$. if my goal is property appreciation, which one would be the better bet. or are there any other areas which has potential to grow down the line other than these 2 areas?

Thanks in advance

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Very helpful info. Most of the new developments has mello roos/hoa, some of them don't have hoa but higher mello roos. Some.of them has hoa with lower mello roos. All the new constructions on fiddyment Rd are bigger in size compared to woodcreek oaks blvd. If I want to choose one of these 2 areas, which one would be best bet?

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All Forum Posts by: Ramki D.

Ramki D. has started 28 posts and replied 117 times.

Post: Annual rent increase - south natamos

Post: Annual rent increase - south natamos

Post: How much rent can i increase for next lease renewal - CA- SAC

Post: How much rent can i increase for next lease renewal - CA- SAC

Post: How much rent can i increase for next lease renewal - CA- SAC

Post: How much rent can i increase for next lease renewal - CA- SAC

Post: How much rent can i increase for next lease renewal - CA- SAC

Post: looking for out of state investment in NC

Post: looking for out of state investment in NC

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