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Code Compliance BHrent Rent Increases/Adjustments

Tenant Types

Chapter 5 - Tenants whose Original rent on their current lease was $600 or less per month and whose building was built before September 20th, 1978.
Chapter 5 FAQ (rev June 2018)

Chapter 6 - Tenants whose original rent on their current lease was more than $600.
Chapter 6 FAQ (rev June 2018)

For current maximum allowable rent increases for each category of tenant refer to the chart on the right or call 310-285-1031.

NOTE:  Chapter 5 or Chapter 6 tenant status is based on the initial rental amount stated in the most recent, valid lease or rental agreement. This is not to be confused with the current rent amount, which may reflect increases over time.  For example, a Chapter 5 tenant's current rent may be $1000 per month due to increases over time. The tenant remains a Chapter 5 tenant if the original rent was $600 or less per month.

 


Chapter 5 Tenants

 

ANNUAL INCREASES [B.H.M.C. § 4-5-303]:*

A. For annual increases effective on any date between May 31, 1979, and May 30, 1980, inclusive, no such increase shall exceed an amount computed in accordance with the latest published figure reflecting the increase for a twelve (12) month period in the Urban All Items Consumer Price Index (CPI) for Los Angeles (or any successor equivalent), as published by the United States Department of Labor, Bureau of Labor Statistics. The proper method for computing such an increase in the CPI shall be as follows: The latest published CPI figure shall be added along with such figures for the preceding eleven (11) individual months, and, from the sum reached, there shall be deducted the sum of such figures for the twelve (12) months further preceding the last such twelve (12) months. That remainder shall then be divided by the lower of the two (2) sums heretofore mentioned, and the resulting figure shall indicate the permissible maximum percentage by which the base rent may be increased by virtue of the rise in the CPI.

B. For annual increases effective on any date between May 31, 1980, and December 14, 1981, inclusive, no such increase shall exceed a maximum of eight percent (8%).

C. For annual increases effective on or after December 15, 1981, no such increase shall exceed eight percent (8%) or the CPI as of the date of the notice of increase, computed pursuant to subsection A of this section, whichever is less.

D. Any security deposit lawfully imposed by the landlord on a tenant may be increased by the same percentage as the base rent may be increased, in accordance with the provisions of this section, at such time as the base rent is recomputed.

E. A landlord who is not in substantial compliance with any of the provisions of B.H.M.C. § 4-5-801 of this chapter shall not demand, accept or retain the annual rent increase otherwise permitted by this section. (1962 Code § 11-3.03; amd. 1988 Code; Ord. 17-O-2745, eff. 1-19-2018)

  


 Chapter 6 Tenants

 

RENTAL INCREASES [B.H.M.C. § 4-6-3]

An increase in rental above the base rental specified in B.H.M.C. § 4-6-2 of this chapter is permissible for any dwelling unit regulated by this chapter, subject to each of the following limitations:

A. Only one increase shall be permissible within any twelve (12) month period; provided, further, that a twelve (12) month period shall have elapsed since the last increase.

B. Such increases shall not exceed the greater of: 1) three percent (3%) of the rental rate then in effect, or 2) the percentage equal to the percentage increase, if any, of the Consumer Price Index for the Los Angeles/Riverside/Orange County Area, as published by the United States Department of Labor, Bureau of Labor Statistics between May 1 of the then current year and May 1 of the immediately preceding year.

C. The tenant shall be given written notice of any such increase in accordance with the requirements of State law and the terms of any written lease or rental agreement applicable to the tenancy prior to the effective date of such increase.

D. A landlord who is not in substantial compliance with any of the provisions of B.H.M.C. § 4-6-10 of this chapter shall not demand, accept or retain the annual rent increase otherwise permitted by this section. (1962 Code § 12-1.03; amd. Ord. 04-O-2449, eff. 6-18-2004; Ord. 17-O-2725, eff. 1-24-2017; Ord. 17-O-2728, eff. 2-21-2017; Ord. 17-O-2729, eff. 5-5-2017; Ord. 17-O-2745, eff. 1-19-2018)

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Notice For Rental Increase: Prior to increasing the rent, the landlord must provide written notice to the tenant. The notice must be delivered to the tenant at least 30-days prior to the rent increase, if personally served to the tenant, or 35 days if the notice is sent by First Class Mail [B.H.M.C. § 4-6-3 and California Civil Code Section 827(b)(1)(B)(2),(3)].

It should be noted that only certain surcharges or penalties related to water and refuse collection may be passed through to tenants in addition to the permitted annual adjustment (B.H.M.C. § 4-6-7 and B.H.M.C. § 4-6-8).

 

Rent Adjustment Application: Should a landlord believe he/she cannot receive a fair and just return from his or her property with the annual permitted increase, he/she may apply for a greater rent adjustment.   The City is establishing an application process for the adjustment that will require the landlord to demonstrate that he/she cannot receive a fair and just return using net operating income principles.  (See  B.H.M.C. § 4-6-11)  Upon receiving an application for an adjustment from the landlord, the City will inform the landlord and the tenants when the  hearing on the rent increase application will be scheduled before a hearing officer.

It should be noted that only certain surcharges or penalties related to water and refuse collection may be passed through to tenants, in addition to the permitted annual adjustment.  (B.H.M.C. §§ 4-6-7 and 4-6-8). 

 

Rent levels for new tenancies.  The allowable rent level after a vacancy depends on the reason for the vacancy.  After a voluntary vacancy occurs for a given unit, rent levels for that unit are subject to whatever rent is agreed to by the incoming tenant and landlord (sometimes referred to as “market rent”).  For evictions, the following applies. 

  • Just-Cause Eviction. If a tenant is evicted for specific causes set forth in Chapter 6 (a “just cause eviction”) the rent level for the new tenant will be “market rent.”   The just-causes set forth in the ordinance are:
    • failure to pay rent [B.H.M.C. § 4-5-502]
    • violation of obligation of tenancy [B.H.M.C. § 4-5-503]
    • maintenance of nuisances [B.H.M.C. § 4-5-504]
    • illegal uses [B.H.M.C. § 4-5-505]
    • refusal to provide access [B.H.M.C. § 4-5-507]
    • unapproved subtenants [B.H.M.C. § 4-5-508]
  • No-Cause Eviction and Other-Cause Evictions. If a tenancy is terminated for other reasons than those set forth above, or for no stated reason, the rent for a subsequent tenant cannot exceed the rent of the evicted tenant (plus any permitted annual adjustment including certain utility charges or penalties related to water and refuse collection, should they apply).

 

 
Contact BHRent
CONTACT: Beverly Hills Rent Stabilization
ADDRESS: 455 N Rexford Drive, Room 200
Beverly Hills, CA 90210
EMAIL: BHrent@beverlyhills.org
URL: www.beverlyhills.org/BHrent
DEPT PHONE: (310) 285-1031
 
Maximum Annual Rent Increases

Chapter 5

The current maximum allowable increase is 3.83% (BHMC § 4-5-303).


Chapter 6

2018 - Maximum allowable increase effective on 6/12/18 is 4.1% (BHMC § 4-6-3B).