Oakland Section 8 - rent increase

[Jessica Yau]

I recently gave my Section 8 tenant a 60 day notice of a rental increase from $1,095 to $1,300. Section 8 reviewed my request and only approved an increase to $1,200. Any one know what my options are from here? I'm working under the assumption that I am allowed to increase the rent to what I deem as market rate (1,300). If the tenant wants to stay, they will have to cover the portion Section 8 doesn't? If they don't want to stay, then we terminate the lease?

[J. Martin]

You are in Oakland my dear!! Because the just cause/eviction rules are in place, what just cause do you have to end the lease? (aka get them out of apt). Nonpayment of rent? Owner-occupying unit? Will not agree to lease substantially similar to prior lease? No, no, and no? You might be stuck.. If I could go to any below-market-rent building in Oakland w/ just-cause protections and end the leases with the tenants because they are not market rate (sec 8 or not), I would be a rich rich man by now.

You actually have it better than most out there, because without Section 8, you would still be sitting at lesser rents than your $1200 AND still not have the ability to end a lease! You're probably going to have to consult a good eviction lawyer in Oakland if you want to pursue it, but the difference to market is actually very small relative to most of what I've seen in Oakland. It is very difficult to have all or even most units at market rents in Oakland. And the city is very landlord-unfriendly if you end up in a dispute. Part of my hesitance to dip into Oakland, given prices today.

good luck though, and be careful if you're going to take action against your tenant without excellent legal advice. There can be BIG repercussions!! The tenant is like the proverbial "customer" in Oakland.. They are always right!! (even when theyre wrong)