Understanding rent control

[Andy Eakes]

I am about to make an offer on a 3 unit multifamily in San Diego, CA. I just found out about rent control here. In my reading, some of the articles mentioned that you can not raise the rent by over 10% every year. Other articles say its lower, closer to 7%. I am hoping to gain some clarity before I jump into this rental!

Thanks.

[Greg M.]

Both cities and states can impose rent control. CA rent control is 5% + CPI, which is around 7%-8% total. SD probably has rent control set at 10% max. The lower of the two wins out. 

Keep in mind that as San Diego moves more toward the left, you're going to face more and more restrictions.