How Much Can I Raise My Rent?

How much can I raise my rent?

In Southern California, the best answer is “It depends”. The statewide rent control (AB 1482) which took effect in January of 2020 allows for an annual rent raise of 5% plus cost of living based on The California consumer price index. In the city of Los Angeles and the unincorporated Los Angeles county areas, there is a moratorium on all rent increases.

If you are in Los Angeles, Orange Riverside, or San Bernardino Counties, the 5% plus CPI (3.6%) will allow for an 8.6% increase. In incorporated cities in LA County, check with your municipality, but if there is a special restriction (West Hollywood, for instance), no increase is allowed.

Always check with your municipality, the Apartment Owners Association, and your own legal counsel to verify the current situation, as it is subject to change. If you ARE able to increase rents, make sure you have the most up-to-date forms and you serve as required by law with the proper amount of time given before the new rent takes effect.

What we at PRS PROPERTIES CAN DO. We can discuss with you the current rents in your area and supply you with comparable rental prices for similar properties. Before you hire a manager, make sure the compensation is fair to you! We can also look at your building for changes that might allow you to get a higher value in order to create value without huge expenses for your building. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We always have many investors who are looking for “as-is” properties and are willing to purchase with low rents, a moratorium, or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are in 1031 exchanges and need to identify a replacement property before their 45-day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted, and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.

Remember – KNOWLEDGE IS POWER!