A New California law has expanded the number of days a landlord has to give warning to tenants prior to high increases in rent.
The new law (AB 1110) increases the timeframe from 60 days to 90 days for increases 10 percent and above. For lower increases in rent (less than 10 percent), the required notice timeframe is 30 days.
Keep in mind, the recently passed Tenant Protect Act of 2019 (AB 1482), restricts annual rent increases to 5 percent (including inflation that is 10 percent).
If you plan to increase rent it is important to know how to structure a Rent Increase Letter. When putting together such a letter, you should follow state and local laws, such as AB 1110, to avoid getting into legal trouble. Typically, a rent increase letter has the following information in it: property address, increase amount, address, property owner’s name with contact information, date of letter, what the rent amount is now and the date the increase would take effect.
Justifications for raising rent could include, but aren’t limited to: property improvements, cost of living, tax increases, neighborhood value, inflation, insurance costs, utility costs and others.
If you are unsure about how to properly handle a rent increase, contact us today. Our team of experienced real estate attorneys can walk you through the process.