Raising Rents

[Sean Cutt]

Hello all!

So I'm curious about a property in Hawaiian Gardens, CA. If anyone has experience in this market, how do you deal with raising rents?

They claim market rent to be $1404/month and their current rents average $1104/month. (Don't worry about verifying this market quote for me I plan on doing this myself.)

My question is about raising rent and how it works. I understand that cap ex can justify raising rents but if a building is not under rent control, how fast am I allowed to raise rent? Is it purely market driven? Or is there a ceiling to how much I can do it a year or a month?

Please excuse the greenhorn question! And thank you for your time!

[John Casmon]

Not sure of any specific CA rules, but typically you can raise the rent as much as you'd like as long as there is no rent control. Want to charge $5,000 for rent? Go ahead. The market will determine whether or not anyone is willing to pay it.