Rent Increase Facts in California

By
Services for Real Estate Pros with HomePointe Property Management, CRMC

In California a landlord can raise the rent in any amount unless they live in rent controlled community like San Francisco, Berkeley, and some others.  Most of California does not have rent control.

If the amount of the increase is 10% or less, the notice need only be 30 days.  If the amount of the increase is more than 10%, the notice must be 60 days.  If the landlord gives more than one increase in a year, the notice would have to 60 days when the cumulated rent increase totals go over 10%.

The notice  should be served at the tenant's and a copy mailed.  This is proper service.

Most landlords give 3% increases on an annual basis when single family dwellings are the subject.  Much more and you are inviting your tenant to pack up.

I would suggest that landlords and property managers do a rent survey prior to considering a rent increase so you know what the tenant will be looking at when the increase arrives.

The greater Sacramento Region, including Sacramento, Yolo, Placer, and El Dorado Counties do  not have rent control.  

www.HomePointe.com 

Posted by

Robert A. Machado, CPM, MPM

HomePointe Property Management

Sacramento, Yolo, El Dorado, and Placer Counties

We manage residential and commercial property.

916-429-1205 x 105

rmachado@HomePointe.com

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Rainmaker
1,141,254
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Robert - I'm curious.  Have you seen rents in the Sacramento area escalate, since the property value decline of the last year or so?

Oct 28, 2008 11:37 AM #1
Rainmaker
251,689
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management - Sacramento Area

Myrl, rents have held pretty steady, not much up or down.  There is plenty of supply from investors buying foreclosures and from owners that choose not to sell due to the down sales market.  There are also plenty of renters since buyers are pretty scarce right now.  It all ads up to a pretty even handed rental market.  I suspect rents may rise soon, but this economy is very unusual as we all know.

Oct 28, 2008 11:56 AM #2
Rainer
31,736
Thomas R. Martin Broker/Owner ICPM
Investors Choice Property Management - Sacramento, CA
Property Management the way it SHOULD be.

Nice post. I am curious if you have felt any of the "secondary" effects of this economy? While this would normally be a property manager's market with no one buying, we are feeling the effects in that some investors are suffering elsewhere (job loss, etc.) and are therefore looking to tighten their belts by choosing to self manage. For now, the trend is very slight, about 2 in 100, but I am curious to see if the trend escalates as concerns over the economy continue.

Oct 28, 2008 07:30 PM #3
Rainmaker
1,053,805
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Robert, you make some great points. I have noticed in LA there is even less rental properties moving and not counting the Large Rental Buildings, or the ones that are Luxury, the average small rentals have been decreasing and it takes longer to rent as well.

Oct 29, 2008 12:29 AM #4
Rainmaker
251,689
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management - Sacramento Area

Thomas:  There are always rental property owners that pull out to save money or to try it themselves.  My mother used to cut my hair when I was 10, but I tend to use a professional now.  I always remind myself that no matter how much knowledge and how many systems, there are always valid reasons accounts are lost.  I also know that there are more clients out there that need our service as much as I need them.  

Endre:  Have not seen much in the way of rent decreases here yet, but that could change.  

Oct 29, 2008 11:28 PM #5
Anonymous
Anonymous
Rachael

Is it legal for a landlord to raise the rent on some units but not others? I am friends with one of my neighbors and just learned that he did not get any rent increase this year, whereas mine was raised by 3 percent. We have both lived here for 5 years. As far as I know, the only difference between us as tenants is that he's on the first floor and I'm on the second.

Jun 02, 2009 10:51 PM #6
Rainmaker
251,689
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management - Sacramento Area

It is legal to do that.  It is possible the owner feels your unit is worth more.  

An owner should not increase a rent in retaliation for a tenant asking for repairs.  

Jun 03, 2009 10:05 PM #7
Anonymous
Anonymous
khanh pham

Hello.  This is a commerial rental question.  I recent sold a business and in order for me to sell  it, how's the scoop.  Long story short... My lease was up and a new one is needed for the buyer.  The rent for me was also the same for the past 5 years.  The buyer negoicated a new lease which had a $200+ rent increase.  He was not happy.  The landlord told me you forgot the CPI increase for the past five years and took it out in escrow.  Over $9200. 

I knew that he had to give me a 30 day notice at the very least of any rent increase for the following year as I have other businesses that have rent.  If I knew that there were rent increase, my business decisions may have changed years ago.  I allowed it to go through escrow as he was holding on to the new lease for the buyer.  Is this legal and I have a case against him?  It's certainly unethical.

Feb 18, 2010 01:55 PM #8
Rainmaker
251,689
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management - Sacramento Area

Khanh,  I think you should check with a real estate attorney.  He will have to review your lease.  I think you have a good case.

Feb 18, 2010 04:24 PM #9
Anonymous
Anonymous
C. HILL

Hi, What is the min. notice for a rent Increase on commercial prop In L. A. co? thank you C. HILL

May 29, 2011 03:51 PM #10
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Rainmaker
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Robert Machado

CPM MPM - Property Manager and Property Management - Sacramento Area
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