Skip to main content
This Board Has Moved

This board has been migrated to our new platform! Check out the new home page at or click below to go directly to the new Board on the new site.

Go to the New Site
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
I'll be fine as long as the rent can be moved to market rent upon vacancy. While there's
been talk of controlling vacant rent increased, nothing has passed.

For existing tenants, CA has a YOY rent increase cap of 5%+inflation, usually totaling 7%-8%/year. For the last 20 years my average existing tenant rent increase has been well under 5%.

As I explain to my tenants, a rent increase cap motivates me to keep rents close to market so the building sales price doesn't deteriorate. Thus under rent caps I raise rents more and more often.

A friend inherited a 4-plex where rents were probably 50% of market. Due to the low rent he probably sold $500k lower than if rents had been at market. The new owner is a young single person. We guess unit-by-unit the new owner will move in, rehab and re-rent at market.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.