Time to Raise Rents
Landlords cannot just sit back and allow their properties to manage themselves. Landlords need to be vigilant in protecting their income property. We have all seen the horrors of legislation, designed to protect tenants, which is shouldered on the backs of income property owners. This started with local jurisdictions, and then finally the State of California, establishing rent control ordinances which severely take away our property rights. Landlords have been singled out as the only industry with price controls. The free market does not apply to landlords.
Once the pandemic took effect, income property owners again saw the complete erosion of their property rights. In some jurisdictions, such as Los Angeles, tenants can escape paying rent for up to 41 months!
So, What Can We Do?
First and foremost, you need to evaluate the rents you are charging. If your rents are below market level, rent increases should be served immediately. There are no limitations on rent increases if your property is not subject to any rent control. If your property is subject to Statewide Rent Control, AB-1482, you can immediately raise rent by 10%. If you are subject to a local rent control statute, you should take advantage of what the law allows. Rent increases should be given on a yearly basis. Rent increases that are 10% or less require a 30-day notice. If more than 10%, a 90-day notice is required.
Lastly, if you have a tenant that does not act appropriately, you should consider terminating the tenancy by failing to renew the lease or issuing a Notice to Quit. For property subject to Statewide Rent Control, do not initiate a tenancy on a one-year lease. Under Statewide Rent Control, tenants who have occupied the premises less than 1 year do not require “good cause” to terminate a tenancy. On that basis, I would suggest either leasing the unit on a month-to-month tenancy or possibly on a 10-month lease.
Dennis Block, of Dennis P. Block & Associates can be reached for information on landlord/tenant law or evictions at any of the following offices: Los Angeles: 323.938.2868, Encino: 818.986.3147, Inglewood: 310.673.2996, Long Beach: 310.434.5000, Ventura: 805.653.7264, Pasadena: 626.798.1014, Orange: 714.634.8232, San Diego: 619.481.5423 or by visiting www.evict123.com. Now, you can also read Dennis Block on Twitter, www.twitter.com/dennisblock or text him at (818) 570-1557. “Landlord Tenant Radio Weekly Podcasts can be heard at any time at www.EVICT123.com or download the app “EVICT123”.