10 Ways an Owner Can Increase Rent

The Mayor of Los Angeles signed an emergency moratorium that temporarily prohibits certain rent increases during the COVID-19 pandemic. At the moment, these don't apply.

Here are 10 ways to increase rents in a rent controlled property. 

  1. Review Leases – If tenants are eligible for a rent increase and the apartment is rent controlled, as of July 1, 2020 the allowable rent increase is 3% (or as designated on the HCIDLA website). 

  2. Section 8 Tenants – If you have section 8 tenants, please follow the specific online procedures and guidelines to increase rent. Go to the section 8 portal for rent increase.

  3. Capital Improvement Program - This program allows the cost of expenditures to be divided 50/50 between the landlord and all tenants benefiting from the improvement. More information can be found on  hcidla.lacity.org/Capital-Improvement 

  4.  Vacant Units – When there is a vacant unit, it’s important to do certain improvements more than others before offering the apartment for rent. For example, tenants prefer apartments with remodeled kitchens, bathrooms and refinished hardwood floors.  

  5. Rent Comparable – Use rent comparables data to price the apartment’s rent. Please refer to apartments.com and craiglist.org to obtain rent comparables. Using high quality images and videos will increase interest in your rental unit. 

  6. Furnished Apartments – Furnished apartments tend to rent higher than unfurnished apartments. In order to compare rents, please visit apartments.com. 

  7. Enhance Property Appeal – Improving the property curb appeal will attract more interest from tenants and generate higher rents. Please email me to obtain 12 Suggestions to Enhance Property Appeal article. 

  8. Additional Tenant – Per RSO website, if there is an additional tenant in an apartment and they are not on the lease, a 10% additional tenant rent increase is possible. Please refer to HCIDLA website and see article for Additional Tenant. 

  9. RUBS Program – By using the RUBS program,  water costs may be transferred to tenants. Please Google the term "RUBS" to find vendors that offer the RUBS program on how it can be utilized for your building and visit the HCIDLA website before implementing this program.

  10. Cash-For-Keys – The cash-for-keys program is a tenant buyout program where the tenant agrees to move for a specified amount of money.  Please see the HCIDLA website for details on cash-for-keys. 

 

The above is just a few of the many strategies there are to increase the value of your apartment building. If you’re looking to sell, these strategies will help you get a higher price. Even if you’re not planning on selling, these strategies will increase your revenue and put you in a better financial situation in the future. If you have any questions regarding any of the above strategies, please contact us for more information!

Anie Mayelian  (818) 915-9118 
DRE #0077825

If you have a brokerage relationship with another agency, this is not intended as a solicitation. All information deemed reliable but not guaranteed. Each office is independently owned and operated.

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