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2019-2020 RSO Allowable Rent Increases

Allowable Rent Increase

Allowable Rent Increase

IMPORTANT UPDATE for landlords/property owners of rental units covered by the Rent Stabilization Ordinance (RSO): Effective July 1, 2019, the calculated annual increase percentage has INCREASED from 3% to 4% through June 30, 2020 – the highest level in a decade! The RSO became effective on May 1, 1979, and at that time, the percentage allowed was 7%. Since then, it decreased steadily, and starting in 1993, the allowed increase remained at 3%, with the exception of only 3years – the most recent year being in 2009, when it was 4%. This may not seem like a lot, but in the face of increased rental restrictions in California coupled with the increasing costs to maintain properties, it can make a big difference for landlords. If you are a tenant in a rent-controlled unit, it is important to keep this in mind if your rent is increased this year. If you are a landlord/property manager of a rental unit(s) covered under the RSO, be sure to take advantage of this annual increase percentage. As long as it’s been 12 months or more since the last such rental increase, you are good to go! And don’t forget to give your tenant(s) a 30-day written notice of the rent increase. Landlords can also collect a monthly surcharge of $3.61 to recover the paid Systemic Code Enforcement Program fee, as well as a one-time surcharge of $12.25 to be collected in August to recover half of the $24.51 registration fee per unit. Every dollar counts!