Oakland Property Managers CAN Increase Rents Above Annual Bay Area Consumer Price Index (CPI) Levels

The Myndful Investor Podcast

Oakland Property Managers CAN Increase Rents Above Annual Bay Area Consumer Price Index (CPI) Levels

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Most Okln lnlors n proprty mngrs ssum tht thy n only inrs th rnt t rnt-ontroll units y spifi prntg h month. Typilly, tht’s tru. For unit ovr unr th Okln Rnt Control orinn whr th originl oupnt still livs in th unit, lnlor my only inrs th rnt y th nnul prnt hng in th By Ar Consumr Pri Inx ().But wht mny lnlors () on’t rliz is tht th lol rnt ontrol orinn outlins numr of rsons whn lnlor my tully inrs rnts y mor thn th nnul inrs.In ition to llowl rnt inrss, lnlors n lso ftor in othr xpnss tht, with prmission from th Rnt Control Bor, llow thm to inrs rnts ov th nnul limit. Thos rsons inlu:

Bnk Rnt Inrs

Lnlors r llow to inrs rnts y th nnul limit h yr, ut thr r som Okln lnlors n proprty mngrs who for whtvr rson i not to o so. In xhng, th lol lw llows Okln rntl proprty ownrs to “nk” thos rntl inrss h yr to ppli t ltr t. Whn lnlor is to pply thos nk rnt inrss, h hs grouns to inrs th rnt ov th nnul limit in ny givn yr.

Cpitl Improvmnt Inrs

To limit xtnt, lnlor n pss th osts of pitl improvmnts on to tnnts. Aoring to th Okln Rnt Control orinn, pitl improvmnts r fin s improvmnts tht mtrilly to th vlu of th proprty n pprily prolong its usful lif or pt it to nw uiling os. Th improvmnts must primrily nfit th tnnt n not th ownr. Cpitl improvmnt osts o not inlu osts ssoit with srious o violtions, rpirs n u to frr mintnn, or improvmnts tht r of grtr hrtr or qulity thn xisting improvmnts (). Lnlors my pss up to 70% of tul osts, plus imput finning, through to tnnts.

Inrs Housing Srvi Costs

This is ssntilly nothr wy of tlling Okln lnlors tht thy n pss inrs oprting xpnss on to tnnts. Th Okln Rnt Control orinn onsirs “housing srvis” s ny srvis provi y th ownr rlt to th us or oupny of rnt-ontroll unit, inluing insurn, rpirs, mintnn, pinting, utilitis, ht, wtr, lvtor srvi, lunry filitis, jnitoril srvi, rfus rmovl, furnishings, prking, surity srvis n mploy srvis.

Uninsur Rpir Costs

If lnlor hs mg to his proprty tht is not ovr y his insurn poliy, h or his Okln proprty mngr my l to pss thos uninsur rpir osts () onto tnnts y inrsing rnts ov th nnul mount.

Constitutionl Fir Rturn

This is on of th vgust rs of Okln’s rnt ontrol lw. Th orinn sys tht rntl proprty ownrs r ntitl to “fir rturn”. Although th rnt ontrol lw stts tht no sris of inrss in ny fiv-yr prio n x 30% for ny rnt inrss s on th rnt justmnt, it provis lnlors with n xption if thy r not othrwis l to rliz “fir rturn” on thir invstmnt.Although Okln lnlors my l to inrs rnts ov th nnul rnt inrs for ths rsons, th orinn provis systm of hks n lns to kp lnlors honst. A lnlor must provi writtn noti to tnnts out th rnt inrs. Tht noti is rquir to stt how muh of th rnt inrs is llowl s ti to th inx, n must justify th us for ny inrs in xss of tht. If tnnts fl th rnt inrs is ov th mount is not rsonl, th n fil ptition with th Rnt Control Bor. In tht irumstn, lnlor must provi writtn summry of th justifition for rnt inrs for ny rnt inrs othr thn th on solly s on th rnt justmnt.If lnlor or Okln proprty mngr ting on his hlf m pitl improvmnt rnt inrs, h must inlu writtn sttmnt tht sris () th typ of pitl improvmnts; () th totl ost of th pitl improvmnts; () th ompltion t of th pitl improvmnts; () th mong of th rnt inrs from th pitl improvmnts; n () th strt n n of th mortiztion prio. If lnlor fils to provi this informtion, th itionl rnt inrs is onsir voi n th tnnt is not oligt to py nything ov th nnul inrs.In short, it’s importnt for Okln lnlors, proprty mngrs n rl stt invstors to unrstn tht thy n typilly only inrs rnts t ovr units y rtin mount—ut tht’s not lwys th s. Som rgu tht rnt ontrol is-inntivizs lnlors from invsting in thir rntl proprty; this ovrviw is intn to show tht’s not th s. Rntl proprty ownrs n () proprly mintin, mng, oprt n improv thir rntl proprtis. Thr r mny wys to pss thos osts onto tnnts, ontrry to populr lif.

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