What makes an apartment in Oakland, CA exempt from rent control?

Question

I've heard different opinions on this. I’m guessing it has to do with what year the building was built? What year if so?

I ask because I’m looking to buy an apartment in Oakland, CA to live in at first, but I’d like to rent it out eventually and ideally not have it be subject to rent control. I figure I’ll be able to rent it out at market rate for the first year the tenant is there, but I’d like to be able to raise the rent price to whatever the market will bear each year if the tenant wants to stay longer than a year.

Brian Garlington · Answer

Matt,

Rent the units out to tenants with a Section 8 Voucher. When a tenant in Oakland has their rent subsidized by the government then they are not subjest to rent control. My rentals in Oakland are all either Section8 or Abode services (similar to Section8 but better) and each year I have raised the rent by 5 % and even in the pandemic the housing authority raised the rents.

Matt A. · Answer

Thanks Steve!

Steve Wang · Answer

I pulled this list from Oaklands Rent Adjustment Program page.

The following are subject  to exemptions from Rent Control.

• Subsidized Housing.
• Motels, hotels if occupancy not more than 30 days.
• Hospital, dormitory, extended care facility, etc.
• Non-profit cooperative owned and occupied by majority of residents.
• New construction (built after January 1st, 1983)
• Substantial rehabilitation.
• 3 units or less owner occupied properties.
• The unit that an owner occupies in any building.
• Non-profit facility-homeless/substance abuse treatment.
• Unit in trust for the developmentally disabled.
• Shared facilities with owner and tenants (bath/kitchen).
• Costa Hawkins-Single family home or condominium.
• Vacant units

Link: https://www.oaklandca.gov/reso...

The most notable is the houses built after Jan 1, 1983 exemption.

I'm house hacking a duplex in Temescal and had to lower rents last year from $2,900 to $2,400 with the tenants due to COVID and I want to bring rents up with the same tenants, however Oakland's CPI for 2021 is 1.9% which brings rents up to $2,445. The appreciation is still great and overall cashflow is great!

Happy Investing!