Rental Basics in 95136>Question Details

Ng, Renter in San Jose, CA

Verification - rent increase for apartment

Asked by Ng, San Jose, CA Sat Feb 9, 2013

When the landlord increase the rent of the apartment they send the notice. In the notice they mentioned the increase is due to the increase in the market price and also mention the exact market price . How can we verify market price ? Is there any one who can help us ?

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Answers

7
You may want to check rental ads to give you an idea as to what units like yours are renting for. You can also go http://www.rentometer.com to give you an idea of the rental market rate of your unit. There has been an tremendous demand for rentals in our area and that has trigger a rental increase. Good luck!

Jose
1 vote Thank Flag Link Sat Feb 9, 2013
A quick resource is http://www.rentometer.com

As Charles stated, rentals are in high demand and prices are increasing. You may also want to check into if your apartment falls under rent control by visiting:

http://www3.sjhousing.org/program/apt.html

Have an amazing day!
Web Reference: http://www.terrivellios.com
1 vote Thank Flag Link Sat Feb 9, 2013
We would recommend checking with local realtors and property managers in your area. They can perform a rental market analysis for accurate market information.
0 votes Thank Flag Link Mon Feb 18, 2013
Hi Ng

Check with many fine Property Management companies or you can call me.

Also check on Craigslist.org or backpage.com

One can expect yearly rent increases of 5-15% depending on the city.

Good luck.

Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Sun Feb 17, 2013
Hello Ng,

Craigs list is a very good source of information. Check it out to see what other units (Similar to your unit) are renting for.

Also, in your message you state your apartment. Are you talking about an apartment complex or a Condo (Your options will depend on answer to this question)? Reason I ask is that Landlord does not have to provide any justification for increasing the rent. However, in San Jose (You may want to confirm this with City) only one and two unit properties are exempt from rent control and all other generally fall under City rent control ordinance. What this means is that if the property falls under rent control, the owner/landlord is limited to how much and how often they can increase the rent.

As previously mentioned, rents have been going up significantly. By looking at different resources, you can see if it is viable to pay higher rent and stay or move to another rental with more reasonable rent. Keeping in mind, if your property falls under rent control, then, your Landlord cannot exceed the rent beyond what is allowed by the rent control ordinance.
0 votes Thank Flag Link Sun Feb 10, 2013
I would recommend that you ask the landlord how he determined the market price.

I'm not very familiar with San Jose's rent control process. I believe it would be difficult to challenge an 8% or lower raise (or 21% raise if no other raise for more than two years). Landlords have the burden of proof to justify greater increases.

If you hope to stay where you are I would recommend you look on craigslist and various real estate websites such as trulia and mlslistings to find something which you would settle for, then talk to the landlord telling him why you've been a great tenant but you find it very difficult to pay the increased rent and that other rentals are available. You may be able to negotiate a smaller increase or maybe even no increase.

I have links for various San Jose housing information sources at:
http://julianalee.com/san-jose/san-jose-home-services.htm

Juliana Lee
Cell 650-857-1000
Top 3 agent nationwide at Keller Williams Realty

Over 25 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
.
Web Reference: http://julianalee.com
0 votes Thank Flag Link Sat Feb 9, 2013
Thank you Ng.:

With respect to the verification of the current Fair Market Value of the apartment building where you live, you really need an appraisal by a competent real estate appraiser. I recommend Frank Schmidt MAI. Frank Schmidt has the MAI designation from The Appraisal Institute and many years of experience as a Residential and Commercial Real Estate Appraiser.


However as I read your question what you really need to know what is the market rent for your unit. An excellent source for that information is a property manager who manages apartments similar to yours. Call the property manager and ask him or her what they are asking for rent for units similar to yours. This will give you a good idea what the local property managers are asking for rent.

Currently the market value of rents is rising very rapidly in The City of San Jose. There is an enormous amount of demand for units to rent and a severe shortage of places to rent. That is forcing the market value for rents up very rapidly.

To determine the market rent for your apartment that people are actually paying, is something that you can do on your own. Look for similar apartment units in your neighborhood. Call the tenant in the apartment or knock on the door and explain to the tenant that you are trying to determine the market rent in the area, and ask the owner if he or she will tell you what they are currently paying in rent. If you will talk to 5 or 6 people, that will give you a good idea of the current market rent for units similar to yours in the area.

Also look for units similar to yours that are advertised for rent and ask them what they are asking for rent for that unit. Try to negotiate them down and see what they say. Also follow those units that are advertised for rent and see how long it takes for that unit to be rented.

Because rents are rising so rapidly, now may be a good time for you to consider the purchase of a single family house or condominium, rather than to continue renting.

Interest rates are very low right now. If you purchase a home with a 30 years fixed rate loan, you now will have your housing cost fixed for 30 years. you do not have to worry about future rent increases. Also, after 30 years, when you have the loan paid off, your home is yours. Also, as the Fair Market Value of the property increases you will build up a substantial amount of equity in the property. In addition, the mortgage interest that you pay on your home loan is tax deductible. That further reduces the cost of purchasing a home rather than renting. The money that you pay in rent is not tax deductible.

For more information, you may reach me at my cell phone: (408)509-6218, or send me an email at my email address: charlesbutterfieldbkr@yahoo.com

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
0 votes Thank Flag Link Sat Feb 9, 2013
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