Home Buying in Oakland>Question Details

seller0101, Home Seller in San Jose, CA

What is a rent control,and Just Cause in Oakland, CA?

Asked by seller0101, San Jose, CA Wed Oct 20, 2010

I just bought a single family investment property in Oakland, and try to rent it out under market value due to the property condition is not that great. In that area usually can rent for $1300 and now I am renting $950/month.

I am worried about the rent control and just cause might not let me raise the rent later, also can I not renewing the lease after 1 year? or can I sign a 3 years lease?

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The Rhanac has changed name to Ebrha. (510) 318 8300.
No rent control on SFR's. After 12 months initial lease, it goes to month to month. You can increase rent once a year with no more than 10 percent and have to give 30 or 60 days notice, depending on increase. There are other stipulations, but you can go to the City of Oakland website for that.
Your Realtor should have told you that BEFORE you bought the property as an investment. Work with an investment adviser in future.
A
1 vote Thank Flag Link Mon Mar 5, 2012
The Rhanac has changed name to Ebrha. (510) 318 8300.
No rent control on SFR's. After 12 months initial lease, it goes to month to month. You can increase rent once a year with no more than 10 percent and have to give 30 or 60 days notice, depending on increase. There are other stipulations, but you can go to the City of Oakland website for that.
Your Realtor should have told you that BEFORE you bought the property as an investment. Work with an investment adviser in future.
A
1 vote Thank Flag Link Mon Mar 5, 2012
Oakland is tough area for investors specially multi-units and others. Tennant friendly city. You can find more info on the Oaklandnet website.

I deally you would stay away from Oakland as an investor. For admitting bad credit renters you can glean more info here http://www.alliancemtg.com
0 votes Thank Flag Link Wed Mar 20, 2013
Are Single family houses exemt from Rent Control over a certain age?
0 votes Thank Flag Link Sat Mar 16, 2013
Buyer is purchasing a duplex that have tenants paying low rent and they are on a month to month. Can new buyer give a 30 days notice for tenants to move or will they have to give a 60 days notice?
0 votes Thank Flag Link Mon Mar 5, 2012
How do I ensure I can increase the rent after a year or two, to the market value?
0 votes Thank Flag Link Wed Oct 20, 2010
I called the RHANAC, no one answers, is this the phone number? 510-893-9873 , wiil they help landlord? or only help someone who join their association?
0 votes Thank Flag Link Wed Oct 20, 2010
Thanks Antonine, I will to find out if I can sign 3 years lease and 1 year pre-pay rents.
0 votes Thank Flag Link Wed Oct 20, 2010
The best place to get good answers is RHANAC. The rental assoication ready and willing to help property owners with rent control issues.
The other good site is oaklandnet.com.
Generally speaking: there is no rent control on a SFR. YOu still may be limited to 10% rent increase in one year. See the sites I mentioned for details. After a voluntary vacancy, you can raise rent to market value.
Come talk to me if you want to figure out more details, and get investment advice.
antoine
0 votes Thank Flag Link Wed Oct 20, 2010
Thanks, just wonder if I can sign a lease for 3 years or has to be one year? what about if I remodeled the house after a year, can I increase the rent from $950 to $1200 or $1300?

Also since the renter is with very bad credit, she told me that she will pay 1 year rent in advance, is that ok?
I also try to collect 2 months deposit.
0 votes Thank Flag Link Wed Oct 20, 2010
Another good resource is the city of Oakland's website at Oaklandnet.com. You can go there, look for Rent Arbitration Ordinance (I think) and you will find everything there. There are several sections of the rent control ordinance so you will want to become familiar with all of it.

Just Cause deals with the allowable causes for eviction, you can't just ask someone to leave unless they have given you (the landlord) "just cause" for the eviction. The rest of the ordinance deals with allowable annual rent increases and many other issues. You will find in the ordinance that lease go "month to month" in Oakland after the first lease term.

You can look there to find out how the rent control ordinance affects single family homes, there may be some differences from multi unit buildings.

I don't know what the condition issues are but remember that the landlord has "habitability" responsibilities, the rental unit must have reliable heat, water, safe electricity, etc.

I hope that helps.
0 votes Thank Flag Link Wed Oct 20, 2010
Oakland is an interesting investment area.
These questions are really good ones.
To get more knowledge for protecting your investment.
Start at Oakland City hall. Some information you can get by phoning planning and zoning. But making an appointment and going down town to a meeting will get you comfortable with the people there who work for you.
They can give you the answers you need about rent control.
To realize more return on this investment could you use some rental income and some sweat equity to improve the condition of the property ? $1300 is a lot more than $950 and in the long term it will increase your cap rate for resale significantly!
0 votes Thank Flag Link Wed Oct 20, 2010
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