If you have a rental property in Oakland that’s subject to the city’s rent control laws, you’ll need to know how to raise rent there. Today, we’re explaining some of the most important things you’ll need to know in this situation.
Provide Written Notice
Like any rent increase, you need to give a written 30-day notice to the tenant that you’re changing the terms of the rental contract. That notice must let the tenant know how they can contact you, how they can contact the rent board, and how much their rent will be raised. It also needs to reflect the original rental amount that they had been paying, so they can see how much of an increase they will face.
Amount of Increase
With a rent controlled property, the amount of your increase has to be based on the Consumer Price Index, or the CPI. The amount you can increase your rent will be published by the city of Oakland, and it’s usually between one and three percent every year. Use that amount to calculate your increase, and include it in your written notice to the tenant.
Capital Improvement Pass Through
Another way to raise rent in Oakland is to do a capital improvements pass through. When you make capital improvements to your property, you can pass along up to 10 percent of the cost of those improvements to your tenants. To effectively raise rent this way, you’ll need to specify the number of years the increase will span, and the depreciation amounts that will be included. Make sure you provide all this information when you’re raising your rent this way.
If you have any questions on increasing rent on your rent controlled properties, please contact us at MSB Property Management. We can help you with any Oakland and Walnut Creek property management questions.