max increase – Page 2 – Renters Alliance

City Council discussing the allowed rent increase April 12, 2022

City Council Establishes 3.1% as the Rent Increase Starting July 1st [updated]

April 25, 2022April 28, 2022 Mark Elliot eviction moratorium, max increase

Beverly Hills City Council has affirmed an earlier decision to end the moratorium on rent increases and eviction. As expected Council also established the post-moratorium maximum allowable annual rent increase for rent-stabilized units at 3.1%. That percentage will be available to landlords starting June 1st and will remain in effect until the next percentage is established July 1, 2023. So what is known is that the rent will rise 3.1% when the moratorium sunsets. What is unknown is how much the rent will rise in later years given unpredictable inflation and Council’s stated commitment to allow landlords to recapture missed rent increases.

News

Beverly Hills Rents Will Now Rise — But by How Much?

April 6, 2022April 18, 2022 Mark Elliot max increase, rent-increase moratorium

Beverly Hills City Council is ready to sunset the city’s residential tenant moratorium. Effective May 31st the two-year freeze on rent increases will come to an end. Rents will rise again but what will that percentage increase be? If the rent was increased today it would rise 3.1%. In July that percentage will change and it is likely to be much higher. The challenge facing City Council is how to deal with the effect of high inflation on the coming rent increases while recouping for landlords the missed rent increases. It is complicated!

News

Beverly Hills Multifamily Market Heats Up!

July 14, 2021April 18, 2023 Mark Elliot market economics, max increase

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.

News

Expect a 3.9% Rent Increase When the Moratorium is Lifted

June 12, 2021June 16, 2021 Mark Elliot AB 1482, CPI, max increase, rent-increase moratorium, Tenant Protection Act of 2019

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.

Post lockdown rise in consumer prices chart (April 2021)

News

Brace Yourself: Higher Inflation Means a Larger Rent Increase

June 6, 2021July 13, 2021 Mark Elliot CPI, max 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.

Explainer

Moratorium on the Rent Increase: What You Need to Know

April 13, 2020 Mark Elliot max increase, rent-increase moratorium

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.

Consumer Price Index for Los Angeles area: prices were up 3.1% from a year ago

Analysis

How Does Beverly Hills Compare on the Rent Increase Cap?

August 11, 2019August 13, 2019 Mark Elliot City of Los Angeles, Culver City, Inglewood, Los Angeles County, max increase, Santa Monica, West Hollywood

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?

Chapter 6 maximum allowed annual increases 2014-2019 chart

News

New Maximum Allowed Annual Rent Increase is Posted!

June 13, 2019August 15, 2019 Mark Elliot max increase

City of Beverly Hills has posted the new maximum allowed annual rent increase percentages for both Chapter 5 and Chapter 6 tenants effective TODAY. For the first time, landlords will be allowed a higher percentage increase for Chapter 5 tenants than for Chapter 6 tenants. The world has turned upside down!

Explainer

Fundamental Concept: The Annual Rent Increase

February 22, 2019July 5, 2023 Mark Elliot max 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?

Commentary

Make the Chapter 6 Maximum Rent Increase Floor-Free!

February 4, 2019June 22, 2019 Mark Elliot max increase

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!

Rent increase rates compared for a hypothetical average 2-bedroom apartment 2017-2027.

Analysis

Greatest Threat to Tenants? The Proposed 3.5% Floor

February 1, 2019June 22, 2019 Mark Elliot max increase

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.