Beverly Hills Multifamily Market Heats Up!

Industry reports suggest the giant federal stimulus and rising inflation are pushing rents higher. But the story is complicated: Midwest and sunbelt cities are seeing the greatest percentage increases followed by big-city suburbs. But the most concerning aspect of today’s changing rental market is the effect of macroeconomic pressures on lower-income households and and the lower-quality apartments we inhabit. Let’s take a look.

Read more

Expect a 3.9% Rent Increase When the Moratorium is Lifted

Bureau of Labor Statistics in June released the latest year-over-year change in consumer prices (CPI) and to nobody’s surprise the cost of living is on the rise! From May of last year to May of 2021 the cost of the ‘all items’ basket of goods and services as measured by CPI in our region is up 3.9%. Once the pandemic ends the rent will rise too — and very likely by 3.9% for rent-stabilized households in Beverly Hills. That would be the highest allowed annual rent increase in three years and it will come right on the heels of the pandemic.

Read more

Brace Yourself: Higher Inflation Means a Larger Rent Increase

Listen to the news lately and you can’t miss the chatter about higher inflation. “Continuing supply chain disruptions, low inventories, and increasing labor costs have contributed to upward pricing pressures in recent weeks,” said the Federal Reserve Bank of San Francisco last week. Indeed consumer prices for the Los Angeles-Long Beach were up 3.6% in April over a year earlier, according to the Bureau of Labor Statistics. When the fed releases the May-to-May figures next month we will all know how large a rent increase Beverly Hills tenants will pay this year.

Read more

Moratorium on the Rent Increase: What You Need to Know

City of Beverly Hills expanded its moratorium on eviction due to the COVID–19 emergency to also include a moratorium on the allowed annual rent increase. The provision is included in a new urgency ordinance which took effect on April 1st. However the rent freeze appears to apply retroactively to the date that the local emergency was declared: March 15th. Let’s take a closer look to see how it may apply to tenants who faced a rent increase.

Read more

How Does Beverly Hills Compare on the Rent Increase Cap?

Beverly Hills recently posted the maximum allowed annual rent increase percentage for Chapter 6 tenants and we breathed a sign of relief: it has dropped to 3.1% from last year’s 4.1%. That’s because the rise in consumer prices has slowed and, with it, the cost of providing housing. But most localities don’t cap rents and those that do take various approaches even in the same rental market. How does Beverly Hills compare?

Read more

Maximum Allowed Annual Rent Increase: What You Need to Know

Recently Beverly Hills posted the new maximum allowed annual rent increase percentages for both Chapter 5 and Chapter 6. The latter is tied to the year-over-year percentage change in consumer prices for our region, which the government releases in June of each year. Which got us thinking: Has anyone explained to Beverly Hills tenants exactly how the maximum allowed annual rent increase works?

Read more

Fundamental Concept: Maximum Allowed Annual Rent Increase

Rent control is intended to moderate the increasing cost of rental housing and to enhance the stability of households that rent. Local ordinaces typically include price controls, limited reasons for tenancy termination and regulation of rental housing conditions. Here we look specifically at price control: What does the ‘maximum allowable rent increase’ really mean?

Read more

Make the Chapter 6 Maximum Rent Increase Floor-Free!

There are many issues up for consideration at Tuesday’s City Council meeting but among the most important is the proposed 3.5% floor on the maximum allowed annual rent increase. That floor allows a landlord a 3.5% increase even when his actual costs don’t increase much if inflation is low. This is nothing more than a City Council subsidy to landlords. It has to go!

Read more

Greatest Threat to Tenants? The Proposed 3.5% Floor

Today is rent day, and that makes it an opportune moment to revisit City Council’s tentative consensus on a 3.5% floor for the maximum allowed annual rent for Chapter 6 tenants. As Councilmember Bob Wunderlich honestly described, this is a straight-up subsidy to landlords. We see it as an unearned bonus. Let’s take a look at what the floor is and what it means for tenants that could pay it.

Read more