Can Landlords Raise Rent on Outdated Dump to Same as Updated?

Question

We rent, we live in a nice condo complex from the 70's. Most units have been nicely updated, new weather efficient windows, doors, carpet, paint, updated bathrooms and kitchen, etc. Not ours... our unit has never been updated since the 70's, and is crumbly. However...we don't complain ever because our rent is $600 lower than all of our neighbor's with updated units, and we'd rather have lower rent than updates. BUT NOW our landlord is starting to raise the rent due to the area comps, but can she do that when ours is a dump compared to the others? We're in California.

And, if she raises our rent (slowly) to $600 more (over time, per law requirements), can we require her to update our windows to energy efficient windows and doors? (Our heating bills are over $400/month in the winter due to heat loss.) New carpets, updated bathroom and kitchen appliances, etc.?

Thanks.

And, if she raises our rent (slowly) to $600 more (over time, per law requirements), can we require her to update our windows to energy efficient windows and doors?  (Our heating bills are over $400/month in the winter due to heat loss.)  New carpets, updated bathroom and kitchen appliances, etc.?

Thanks.

Thomas S. · Answer

Yes they can.

No you can't.

As a tenant you have the ability to choose where you live.

Account Closed · Answer

I don't know.  Think about all of the thousands of dollars you've been saving, and that the landlord has been losing.  I think you should be grateful for the nice run of cheap rent you've had.

And don't start about how it's not been updated.  You know that the landlord could have been getting more rent for that unit, just the way it is.  Add up that amount of money in your head.  Let's say, as-is, it could have been rented for at least $400 more per month?  That's at least $4800 per year you've been saving, and the landlord has been subsidizing.

Surely, you couldn't think that could last forever.

Account Closed · Answer

Hi Holly,

Rohnert Park does not have rent control.  So, your landlord can raise the rent as much as they want to.  If they raise it more than 10%, they have to give you 60 days notice.  If they want to kick you out, and you've been there over 12 months, they need to give you 60 days notice.  That's it.

Ned Carey · Answer

@Holly Iske it is negotiable. If the landlord says he or she is raising the rent you can say I am going to move and you will have significant turnover costs.

I would rather keep a tenant longer at a lower rent than have turnover. Tenant turnover is the largest expense for a landlord. Although your landlord may not be smart enough to realize that.

If there are better cheaper options for you to rent, this may be the time to take advantage of them. If you don't have better cheaper options to move to; you now understand why the landlord can raise the rent.

Jacob Pereira · Answer

Everything in life is a negotiation. Keep in mind that you're posting on a forum where most of us are landlords, so we're more sympathetic to their view than people would be on a consumer protection site. Here's how I see the situation:

Landlord's leverage - market rents are significantly higher than what he/she is charging you currently, you don't want to move

Your leverage -  vacancy, make-readies, marketing all cost the landlord money, you're known to be good tenants, tenant-friendly laws (many of these are local and I'm not an expert in your market, but Google is your friend)

What I would do in your situation is talk to the landlord and see if you can get some of the updates now, especially the ones that will save you money. Point out that you are a known entity, and that the Also start searching around and see what else is available. And hey, what about buying? You are on an RE investment site after all.

Ryan Dossey · Answer

I understand giving a tenant a little bit of a break for longevity/ease but... $600 under market rent? That's 7200 a year they're leaving on the table. No way would I let things get that far below "comps". Sounds like your place may need some updating but that's really a personal opinion. The truth your landlord will find is what the market can bare. You could very well move out and it could sit and not rent. Or someone else may love it as it sits.

Jim Sun · Answer

Hello Holly,

Do you have another option outside of where you lived?  If so, do what you can to make your family's life better, especially for the little one.

Landlords own properties to make money, and to make lots of money.  If renters think otherwise, they are crazy.  You got some good advise in this forum like David D., Kaycee, and Greg.  Do you know who will be paying for the upgrade of the units?  Never, never, ever will be the landlords.  Just like landlords pay no mortgage, their tenants do.

Would you rather be your own landlord?  Interview a few very experience Realtors that will look out for their clients.  Set up a plan, follow it to the point, and make it happen.  There are programs out there that will help you with down payments and/or closing cost.  California also has a few first time home buyers' programs to help you get in your first home.  Start with a small property and build from there.  You live there for 10 years already.  What if you managed to buy 5 years ago?  You would not have this problem now, and you will always have that problem until you own.  Most of us have to start somewhere, and not everyone is born rich.  I am sure that lots of investors in this forum started out just like you.  They took a chance tighten their budget, and then happily after.  I wish you the best of luck.  Take care!

Kimberly H. · Answer

You have a landlord that *advised* you to use space heaters? Are you kidding? I advise people NOT to use them, jeesh.

If the daughter knows she can get $400 more in rent if she upgrades it, she may figure that she'll raise the rent now and see if you go or stay. It's really hard to upgrade a place while people are living in it. Or, she may be a total idiot and not realize the other places get more $$ is because they are updated. You may try explaining that to her,"Look, we are long term tenants who have been here ten years that have caused your mom no issues, but at $400 more, that only makes sense if the place is upgraded. We would be happy to have you upgrade the windows while we are living here and would be willing to pay "X" more a month for that improvement." Ask her if she wants to have tenants that stay long term, with no showings to manage, applications to review, etc, or turnover. Honestly, with our long term good tenants, we do what we need to to keep them happy.

Account Closed · Answer

What do you all think, should you keep rent lower for good tenants?  Or no?

Account Closed · Answer

The other thing is we've lived her for many years (over 10), whereas the units around us have super high turnover.  We've had so many neighbors (problem neighbors, I might add) come and go.  Pot smokers, partiers, people fighting/screaming/throwing things at each other, dogs that bark and howl all day and whine all night, unsupervised teenagers lighting backyard bonfires in the bbq grill while mom away at work, etc.  We are the very good tenants -- no pets, no smoke, no drugs, no parties, very quiet, very clean!!  (Oh my gosh...I've seen neighbors' homes...gross.)   I've talked to the landlord for the unit next door, and he's always over there doing repairs, and completely refreshing the unit every 6-12 months due to his high turnover tenants, he seems very stressed.  I asked him once for info on real estate investing, he said being a landlord sucks all his time.  Our landlord, on the other hand, never hears from us, we pay rent on time, and we keep her place clean and maintained nicely -- it actually looks way better now than it did when we moved in, because we've repaired crumbly wall sections, spackled holes/dents, touched up scratched doors and floorboards, de-stained the linoleum, replaced cracked lightswitch plates, power-washed the patio, washed the blinds (the landlord didn't, there was cat hair embedded in them from a previous tenant, which by the way the landlord wasn't aware of anyone having a cat, LOL), etc.  Someone once told me you don't want to raise rent much on good tenants like us... but the landlord just exchanged ownership from the mom to her daughter, so technically...new landlord...even though they haven't given us a new rental agreement, still in the mom's name.

Can Landlords Raise Rent on Outdated Dump to Same as Updated?

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