New! 2007 allowable increase is 3.3%.
Annual
Rent Increase
A new CPI increase of 3.3% is effective as of July 1, 2007. This
is
the earliest date that rents can be increased. Tenants
may only be given one increase in any 12-month period, and the rent increase
cannot take effect earlier than the tenant's Anniversary Date. In addition, California
law requires that tenants be provided with either 30 days or 60 days advance
notice
of
a rent increase
(depending on the percentage increase).
The
allowable annual rent increase for the previous year
was 3.3%.
By California Civil Code Section 827, if the increase is greater than 10%, 60 days notice is required; if the increase is 10% or less, 30 days notice is required.
Effective dates may be later depending on the applicable anniversary date for rent increases.
Oakland has a Residential Rent Adjustment Program (Oakland Municipal Code Chapter 8.22) that regulates certain residential rents. Oaklands Residential Rent Adjustment Program Office ("Rent Program"), is located at:
250 Frank H. Ogawa Plaza, 5th Floor
Suite 5313
Oakland CA 94612
(510) 238-3721.
The Rent Office provides assistance to landlords and tenants regarding rent increases (and some evictions) and is where petitions are filed.
Buildings which were newly constructed and received a certificate of occupancy on or after January 1st, 1983 are exempt from the law, as are buildings that have had rehabilitation worth more than 50% of the building's pre-rehabilitation value. Some other units (notably single family units and condominiums) may become decontrolled, pursuant to State law. Also, owner-occupied duplexes and some triplexes may be exempt from this law. Please contact the rent board for clarification if you are unsure about your unit.
An owner may increase a continuing tenant's rent each year at a rate according to a formula (the CPI Rent Adjustment). The Rent Program announces the annual rent adjustment each year in March. Currently, the allowable rent increase is set at 3.3%. An owner may increase rent not more than once a year on or after a tenants anniversary date (date of the last increase or, if none, tenancy commencement date). ’
A landlord may give a tenant a rent increase above the Annual Rate, however the tenant may dispute the amount of the increase that is above the CPI. In order to dispute a rent increase a tenant files a petition with the Rent Office. The petition must be filed within 60 days of receiving written notice of the rent increase or 60 days of receiving this "Notice to Tenants" from the landlord, whichever is later. In order to file a petition, a tenant must be current with his/her rent. A Hearing Officer holds a hearing on the tenant's petition at which the landlord and tenant each present their cases. The losing party may appeal to the Rent Board. After a tenant has filed a petition, the landlord cannot charge any rent increase in excess of the annual rent increase until the tenant's petition has been decided. However, tenants must be aware that if a rent increase is allowed, it may be applied retroactively. Please note that tenants and property owners may elect to have their case mediated in lieu of the hearing.
In addition, California State Law mandates that a landlord issue a 60-day notice for any rent increase above 10%.
Standards for Rent Increase
A landlord may justify a rent increase in excess of the Annual Rate upon one or more of the following grounds:
1) Banked Rent Increases;
2) Capital Improvements;
3) Uninsured Repairs;
4) Increased Housing Service Costs;
5) Debt Service Costs; or
6) the amount necessary to meet constitutional fair return standards.
A tenant may request in writing a summary of the owners justifications for the rent increase within 30 days of being served with a rent increase notice. The owner must respond in writing within 5 days of the tenants servicing the request for a summary. ’’
How Much Rent to Pay While a Petition is Pending
A tenant must pay all rent increases when due until the tenant files a petition. After a tenant files a petition, the tenant is only required to pay the amount of the increase equal to the CPI Rent Adjustment if the owner separately states that amount on the rent increase notice. If the owner does not separately state the amount of the rent increase that equals the CPI Rent Adjustment, the tenant need not pay any of the rent increase while the petition is pending. Once the petition is decided, the tenant must pay the full amount of any increase ordered by the Hearing Officer retroactive to the date when the rent increase would have been effective under the owners rent increase notice. Because the rent increase is retroactive, Tenants are encouraged to save the increase amount. ’
For more information, contact the Rent office. They are located at 250 Frank H. Ogawa Plaza, 5th Floor, in Oakland. Their phone number is (510) 238-3721.
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