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Updated over 3 years ago on . Most recent reply

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15
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11
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Sam K.
  • Investor
  • San Diego
11
Votes |
15
Posts

Section 8 rent increase San Diego

Sam K.
  • Investor
  • San Diego
Posted
  1. I recently purchased a duplex, one unit is Section 8 and has the same tenant for the last 15 years is what the selling agent told me. Its in the zip code 92117. Outdated 1b/1b.
  1. The contract submitted to city SDHC is $1350 per month as rent by previous owner.
  2. The last contract signed with tenants in 2018 is $1450 per month (but SDHC does not have it). This was done by previous owner. Possibly because the son moved in to take care of mom (~82 years old), Only the mom is on the lease. I do not want to disrupt their living situation since the tenant (mother is very old and has health issues). Its a month to month and still under the previous owner. I haven't created the lease under my name. I will pretty soon. 
  3. I want to increase the rent to between $1595 up to $1650, which seems to fair value for this zip code IMO. Owner pays water.
  4. There is no security deposit on file, I want to collect one months rent as security deposit too.

Question: Is there a limit by what % I can increase the rent? Should I bump the rent first, get that sorted and then create a new lease? or the both together? Since once I create a new lease the minimum term is 6 months and I can't change the rent once lease is in place. Any other things that I need to be careful about?

Most Popular Reply

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1,398
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1,218
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Twana Rasoul
#1 Starting Out Contributor
  • Real Estate Agent
  • San Diego, CA
1,218
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1,398
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Twana Rasoul
#1 Starting Out Contributor
  • Real Estate Agent
  • San Diego, CA
Replied

@Sam K. One of my rentals is section 8, it's relatively simple to increase rents and you can reach out to the case managers regarding guidance on increase. Also, HUD publishes the allowable rents based on number of bedrooms and zip code on their website each year.

That said, once the May 4th SD County supervisor vote comes around in San Diego, they will pass the much more stringent measures for not allowing evictions and only allowing rent increase to a maximum of CPI ONLY. You will not be able to do the 5% additional amount.

  • Twana Rasoul
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