Lease CPI increase

[Adam L.]

Hello,

First I want to apologize. English is not my first language.

I purchased a retail building with a single tenant about a year ago. The lease states every year it adjust to the Bay Area CPI San Francisco/San Jose/ Oakland.  Since 2013 the old landlord did not increase the rent per the lease. The lease is very generic and only states  increases in rent. To make it easier I will use simple numbers like $1,000 rent and 3% CPI increases. He's currently paying the $1,000 but per the lease should be paying $1,060.90. Can I raise it to the $1,060.90 or did the old owner mess up not increasing the rent per the lease. The lease does not say anything if the landlord does not elect to raise the rent. thanks Adam

[Kathryn M.]

Hi,

Short answer is yes, you can apply "banked" rents where the CPI adjustment has not been applied. There are detailed rules about timing and limits here:

http://www2.oaklandnet.com/Government/o/hcd/o/RentAdjustment/