Multi Year Lease - RSO Increase Uncertainty

[Nadeim M.]

Hello. I have a rental unit that falls under the Los Angeles rent stabilization ordinance. Tenant wants to sign a two-year deal. How do I show what year two rent will be in the lease if I don't know the max allowable increase at this time. My thought was to state something along the lines of "the lesser of 3% or the max allowable increase over the month 1 -12 rent amount." For landlords or manager under RSO's, what language have you used when stating the rent amount for years subsequent to the first year of the lease? Thank you.  

[Tony Savage]

Check with the stabilization board Nadeim or an attorney.

[Greg M.]

Existing tenant? If so, just put that Year 2 rent will be Year 1 Rent + Max Allowed RSO increase.

New tenant? Just put the Year 2 rent in there. It's not a renewal, so it doesn't fall under the RSO. It's a multiyear lease.