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Updated almost 9 years ago on . Most recent reply

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Chris Mason
  • Lender
  • California
10,788
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9,934
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Rent Ctrl: What if you bake the rent hike into the initial lease?

Chris Mason
  • Lender
  • California
ModeratorPosted

This is a very general question I have about leases and the like, applicable to areas with rent control and zillion day advanced notice requirements, bla bla bla. 

If your area rewards you by cycling tenants out annually or semi-annually so you can go to current market rent, what if you build the rent hike into your initial lease

It would read ballpark like "Your rent is $3500 per month, which landlord will discount by $1500 per month to $2000 per month for exactly twelve months. Your rent is $3500 per month, temporarily discounted by $1500/month, with $2000 payable in full via bla bla bla for the next 12 months. Should you decide to stay after this lease is up, the $1500/month discount will end but you are free to remain in the unit."

...You gave them one years notice. Your rent was $3500/month from the get-go, you did not raise anyone's rent. You simply ceased discounting it. If the local ordinances say you can't hike it past 10% without 90 days notice, great! You are actually not increasing the rent at all so this does not apply to you.

This is one of those ideas that has probably been thought of one thousand times before; what are your thoughts and what am I missing?

  • Chris Mason
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