California Apartment Association

Landlords must tell tenants of their right to contest a rent increase

Before landlords raise rents in Alameda, they must now tell tenants about an appeal process offered by the city.

This requirement came Sept. 2 as an amendment to the city of Alameda’s rent-review ordinance, which has been in place for a number of years.

City leaders revised the law based on the belief that the review process is not well-known among tenants.

Under the update, a landlord must provide written notice of the appeal process at the same time that he or she provides a tenant notice of any rise in rent.

The notice must inform the tenant that he or she has the option of submitting a request for review of that rent increase to the city’s Rent Review Advisory Committee if both of the following conditions exist:

• The tenant believes the rent increase poses an unreasonable financial hardship on the tenant.
• The landlord and the tenant cannot work out a satisfactory arrangement concerning the rent increase.

The city’s Rent Review Advisory Committee would then hear the concern from the tenant and issue a non-binding recommendation to the parties about the rent increase.

The committee would take into consideration such factors as:

• The financial hardship to the tenant.
• The frequency and amount of prior rent increases.
• The landlord’s costs associated with owning and maintaining the property.
• The landlords interest in earning a reasonable rate of return.
• Anything else that may assist the Committee in determining a fair resolution to the issue.

CAA is preparing forms for owners in the city that comply with the local law and a Q & A to assist owners in understanding the law.  Watch for updates.