I'm in escrow on a property in San Pedro and I'll be inheriting more tenants than are on the lease agreement in 2 of the units. Looking further into the RSO I see that you can raise 10% per additional tenant not listed on the original lease. But the exceptions are dicey. These tenants have occupied both units prior to this amendment (effective 2011) and the amendment states that if the tenant wasn't notified 60 days from the amendment taking effect it does not apply. The seller claims to have only collected rent each month and has no knowledge of the number of tenants occupying the units. So how does that register under "constructive knowledge" (see below)? If you can decipher the amendment and have any insights into my particular situation please let me know.

G. For a rental unit which has an additional tenant joining the occupants of the rental unit thereby resulting in an increase in the number of tenants existing at the inception of the tenancy:

(a) The landlord may increase the maximum rent or maximum adjusted rent by an amount not to exceed 10% for each additional tenant that joins the occupants of the rental unit, except as follows:

(i) This Subsection shall not apply if the landlord had actual or constructive knowledge of the additional tenant's occupancy of the rental unit for more than 60 days and has failed to notify the tenant of the increase pursuant to this Subsection;

(ii) If the additional tenant joined the occupants of the rental unit prior to the effective date of this amendment and the landlord had actual or constructive knowledge of the additional tenant's occupancy of the rental unit prior to the effective date of this amendment, the landlord shall not be able to increase the rent pursuant to this Subsection unless the landlord had notified the tenant of the increase within 60 days of the effective date of this amendment;

(iii) This Subsection shall not apply for the first minor dependent child (or first minor dependent children of a multiple birth) added to an existing tenancy.

(b) The rental unit shall not be eligible for a rent increase until the additional tenant has maintained residence in the rental unit for a minimum of thirty consecutive days.

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