Raising rent as a new owner with section 8 tenants - Oakland

[Justin Pumpr]

Hi all,

first time poster here. I've looked through some of the other posts and it doesn't seem like this has been properly answered, so I was hoping for some info.

I am on the cusp of buying a duplex. One unit is vacant (I plan to live in this one) and one is occupied by section 8 tenants. The rental unit is a 3 bedroom and the current rent is $1,484. According to this site (http://www.huduser.gov/datasets/fmr/fmr_il_history...) the fair market rate for a 3-bedroom unit is $2,204.

My question, as a new owner, can I increase the rent to the fair market rate? Section-8 isn't applicable to rent control, but I'm not sure if this is too much of an increase.

To make things a bit more complicated, their voucher is for 2 people, for there are more than 2 people living there. This is a separate issue though and I'll probably post that separately.

Thanks for taking the time!

[Lois S.]

Check out the rent control ordinance online for Oakland.

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

It would not apply to an owner occupied duplex.

I also suggest going one of the upcoming Landlord 101 meetings at the EBRHA - the East Bay Rental Housing Assn.   If you decide to joint the assn, there are other benefits that are worthwhile.  ebrha.com

If you send the proper notice to Sec. 8 housing office that the rent is being increased, they will take probably a few months to get back to you with approval or tell you how much rent they will allow.  I suspect it will not be market rate rent.  

Make sure before you buy that you get all documents from the current owner that relate to the tenant's lease and security deposit.  Regarding that, BP has a post here :

https://www.biggerpockets.com/renewsblog/2013/06/03/existing-tenants/