CA: increasing rent - Landlord Forum thread 362728

CA: increasing rent by Adale on February 16, 2024 @19:45

Hi,

I have a single family house that rent to tenant for 10 years now. I haven't never raised rent in pass 10 years. I know it was my fault that I didn't increase rent each year.I realize it is 30% lower than market value. I am thinking of take back the house, remodel it and then rent out again to bring it up to market value.

The lease was started with 1 year lease and then became it month by month automatically. There is term that it can not be sublease or used for commercial purpose. But I know he subleased it and do catering business by cooking at home.

I am in California. The maximum rent increase is 10%. I am wondering if I can terminate the lease from my side and give 60 days notice, saying that I want to take back the house and remodel it, then re-lease by increasing to 30%? If current tenant wants to rent back, is it ok to increase 30%? Do I need to pay his house during remodeling?

Is it an option that I terminate the agreement by giving 60 days notice, Then sign a new lease agreement increasing of say 20% with current tenant?

Either way, I would like to terminate current lease, and rewrite a new lease regardless. What are the processes to follow? What is the max I can increase?

Thank you in advance!

[ Reply ] [ Return to forum ]

Re: CA: increasing rent by Garry on February 17, 2024 @15:00	[ Reply ]

First, WHY would you want to re-rent to the same tenant whom you say already broke your lease once by sub-leasing it without your permission ?? That's dumb on your part. Here's what you should do ------- Give your tenant a 60 day notice of termination of the lease. Be sure they are totally moved out, before you take possession back. Then do your remodeling of the property. Take pictures of before and after the remodel. Once the place is ready to rent again, put it back on the market again at a current market rent price. Nobody is going to complain about that price, because you did a remodel to be able to charge a new rent price. Do NOT try to re-rent it to your old tenant. Maximum rent increases in Cal. are only for if you want to increase rents on the same/current tenant for the upcoming year, NOT for when you vacate a unit,do a remodel, and then update the rent to reflect the remodel.

Re: CA: increasing rent

Re: CA: increasing rent by Tom on March 1, 2024 @17:37	[ Reply ]

Are you, or are you not, exempt from AB1482? From the context of your post, I'm guessing that you're not exempt, meaning that you're required to follow the tenant-favoring eviction laws. And that's a real shame, because the rules to evict a tenant in order to do a remodel are quite strict, and getting even more strict on April 1. Beginning April 1, in order to do a no-fault eviction for a “substantial rehabilitation”, you'll need to show county/city permits first. Look up SB567. Are you aware that if you proceed with a no-fault eviction you're required to pay the tenant the value of one month's rent for that inconvenience? You didn't mention where you are in California. You could have even more restrictions in your locality. Is your tenant still in violation of the lease? Do they currently have a room subleased out? Are they currently running a business from the residence? What proof do you have? Lease violations enable you to serve 3-day cure or quit notices. Do this now and follow through. It's probably worth the cost to get an attorney to help you.