I see a lot of responses from people not in the San Diego market.
First, I want to confirm this is a MF unit and that CA rent control (AB1482 applies). AB1482 does not apply to SFH, condos, townhouses, etc. It also does not apply to a duplex if the duplex is OO and the tenant was placed after the OO.
Second, I agree with the posts that indicate that doing annual increases is better than hitting the tenants up with a larger increase. What I typically do is the first increase lets a good tenant get a little below market rent and then I try to have rent increases that prevent their rent getting way before market rent.
Where I disagree with many posts is the to request less than 10% rent increase. These posts do not know the San Diego rental market and the size of average rent increases in this market (which is another reason that many people do not understand that San Diego is a outstanding cash flow market for the long term hold).
CBRE states March to Marcy YOY average City of Sn Diego was 11.6% with a 2.8% vacancy rate. Believe it of not, CBRE is the lowest estimate of average rent increase I am aware of. Rentometer shows 17% (or ~$500/month). Core Logic last I saw was showing 16%. My point is your 10% rent increase over the last 2 years likely puts you at still more than 10% and possibly approaching 20% below market rent.
Rentometer: San Diego, CA
Giving notice is easy. At least 60 days (required for tenants with more than 1 year occupancy) prior to the rent increase, send a letter informing of the rent increase. Let them know that if the increase is not acceptable for them to let you know as soon as possible but not less than one month before they plan to vacate.
Good luck
