Raising Rents in Fresno, CA

[Dana Boyd]

Hello! Question for those familiar with multi-family properties in California. I know California is a tenant-friendly state so have question about rents and raising rents on tenants. If we purchase a multi-family property in Fresno, CA (a property with less than 5 units, so residential, not commercial), it's my understanding that the only way to raise the rent by more than 5% annually is to evict all the tenants. Our agent advised us that we have two options: buy a vacant unit and then set rents at any price we want, or buy occupied units and evict the tenants (with the option to give them the first right of the new rental amount.) Just want to make sure this information is accurate. If anyone has any experience in this area, please let me know. Thanks!