Rent Stabilized Rents Will Jump 3% in September, the Largest Increase in Years

Landlords can raise monthly rents for rent-stabilized apartments in West Hollywood by 3% in September, two-thirds more than last year’s permitted increase and the highest jump in recent years.

The allowable increase will take effect on Sept. 1 and be in effect through Aug. 31, 2019. Property owners may levy it on a tenant who has lived at least a year in his or her apartment or if that tenant has gone without a rent increase in previous 12 months.

The increase in September 2017 was 1.75%. In September 2016 it was 1% and in September 2015 it was 0.75%.

The allowable rent increase is calculated yearly as 75% of the increase in the Consumer Price Index for the greater Los Angeles region, which is determined by the federal Department of Labor’s Bureau of Statistics. That calculation showed a CPI  increase of 4.1 percent in May over the same month the year before.

The rent increases apply only to rent-stabilized apartments, which make up 93% of the city’s rental housing units and house 78% of WeHo residents. Rent-stabilized units are those built before July 1, 1979. While owners of rent-stabilized buildings must limit rent increases to the city’s designated percentage for existing tenants, they can raise the rent to the market level when a tenant moves out.

West Hollywood, like many other cities in Southern California, has a major housing shortage that economists see as the prime reason rents and housing costs are so high. The 2016 Housing Report released by the city last year says that more than half the city’s residents are “rent burdened,” meaning they spend 30% or more of their income on rent and thus may face challenges paying for food, clothing, transportation and medical care.

The report paints a picture of a city with a small pool of households inhabited by moderate-income residents (17%) and a much larger number of very-low and low income households (41%) and of more relatively affluent households (43%).

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Curtis Bray
Curtis Bray
1 year ago

I cant believe this crap! Here I have been paying my rent struggling to pay it and not utilizing help, NOW we are being punished by raising our rent 3%!!! WTF is wrong here! None of us got raises and your just pushing us onto the streets! Capitalism at its best. We will be a 3rd world country soon. Guess I better get my tent ready for beach living…

Virginia Gillick
Virginia Gillick
4 years ago

And then there is the additional $6 PER MONTH that the tenants pay for the landlord to register their unit with the City. Then there is the pass-through to tenants (expected to be $30 to $40 per month) for the soft structure buildings being retrofitted. Clearly some current WEHO residents are going to have to leave West Hollywood. Just sayin’. I really do not know what the answer is, but I do know that a fixed income only goes so far.

Curtis Bray
Curtis Bray
1 year ago

Looking to leave now. Been here for 10 years, couldn’t afford as is, this puts me over the top to homeless.

B. McEwan
B. McEwan
4 years ago

3% is a huge increase in an environment where rents and the cost of living are already outrageous and there is talk of trying to pass on retrofit costs to tenants who have no investment stake in properties. West Hollywood, please take note and take care of your residents.

mike
mike
4 years ago

Having a roof over one’s head is a basic human necessity. Economists are not interested in basic human needs. They only see money. However, Government should/needs to step up and take meaningful measures to insure that housing is available to all citizens. Without a state-wide law that addresses this then the working-class, retired and others less fortunate will be screwed.

Joshua88
Joshua88
4 years ago

I knew, that with wealthy individuals & VC having bought up many properties, that higher rent increases would occur. Rising costs are prevalent all over CA.

That is the only greedy part of this equation.

I don’t like it.

Luis A
4 years ago

The city of West Hollywood, which has so much money as we know, ould tax developers 5% each. And make them pay the difference. They’re all greedy white man.

Let’s face the fact, we live in a greedy grubby country. The dollar is the God.

That’s what everyone wants. Including the five corrupt political hacks on the West Hollywood City Council.

Three of the younger members can be dumped in the next election. Unfortunately, we’re stuck with the two senior citizens for another two years. The Johns!

Josh Kurpies
Josh Kurpies
4 years ago
Reply to  Luis A

How much would a tax of 5% on developers (do you mean on development?) bring into the city coffers? Considering the cost to construct an affordable unit is around $450,000+ per unit and the City already requires developers to make 20% of their units affordable (in buildings of 10+ units, otherwise in buildings with less than 10 units the developer can opt to pay an “in-lieu” fee to the city’s Housing Trust Fund). I worry that replacing our very strong inclusionary housing ordinance with a flat 5% tax on development, we will end up with less affordable housing units. I… Read more »

James Francis
James Francis
4 years ago

I guess Randy is pro-landlord or rather is a landlord, who wants to get rid of all affordable units. One time I was at city hall 7 years ago and mentioned affordable and section 8 and out of no where someone overhearing my conversation walked up behind me when a rent stabilization employee on duty went to retrieve my paperwork, and blatantly said “ I don’t care for there to be affordable units or rent control and don’t care about section 8 what-so-ever!” How rude and insensitive these for profit landlords or property flippers or developers only interested in renting… Read more »

Be Reasonable
Be Reasonable
4 years ago

What was wrong with 2.00-2.25%? This unfortunately can break some folks.

Grant
Grant
4 years ago

Greed. That’s all that it is. How does making the rate of 3% help the housing shortage?

Randy
Randy
4 years ago
Reply to  Grant

3% has been the rate in the City of Los Angeles since 2011. West Hollywood is very tenant favorable when dealing with rental increases. Both cities use the consumer price index as their baseline.

James Francis
James Francis
4 years ago

I have lived in West Hollywood for 7 years and got priced out previously because a landlord changes their mind to make units market instead of affordable! I am dealing with low income and rent increases every year. More the rent the more you pay in percentage. It’s only going up from here, and I am moving into a community housing unit for this reason. The City of Beverly Hills has capped all rent increases at 3% since last year and West Hollywood for the first time will surpass what most realize is it’s somewhat more affluent sister city with… Read more »

RobbyDobby
RobbyDobby
4 years ago

The law allowing landlords to raise the rent to market rate between tenancies has created perverse incentives for greedy landlords to harass and threaten their long term tenants in an effort to force them out of their units. Either more aggressive enforcement to control landlord behavior is necessary or changes to the law to remove this incentive is necessary. The West Hollywood Rent Stabilization Department is essentially broken by the current flood of disputes between landlords and their tenants over the amount the landlords are trying to charge their long term tenants. Something needs to be done, soon or it… Read more »

Randy
Randy
4 years ago
Reply to  RobbyDobby

I’ve never heard of any place that allows restrictions on rent increases when there is a tenant turnover. That includes Los Angeles and San Francisco. If you know of a place that does this, I’m seriously curious to know. I own a place with one tenant. Things were not always this crazy. If I was told when I invested in my property that I had to abide by a percentage increase regulated by the city even if I had turnover in my rental, I’m not sure I would have invested. As crazy as things are now, that would’ve seemed like… Read more »

RobbyDobby
RobbyDobby
4 years ago
Reply to  Randy

California used to. The Republicans repealed it back in the 1990’s…

Josh Kurpies
Josh Kurpies
4 years ago
Reply to  Randy

What RobbyDobby is referring to is “strict” rent control (aka “vacancy control”). Under “vacancy control” or “strict rent control”, when a tenant vacated the apartment, the landlord could only raise the new rent for a new tenancy to a certain level (for example, I pay $1,000/month rent and move out, the landlord could only increase the rent say 10%, setting the new rent at $1,100/month; If I were to have remained a tenant in the unit, the landlord would only be able to increase my rent by the annual adjustment which this year is 3% making my new rent $1,030/month.)… Read more »

P S
P S
4 years ago
Reply to  Randy

Randy, many cities across California could & would enact Vacancy Control (restrictions on rent increases when there is a tenant turnover) if Prop 10 is successful in over-turning Costa Hawkins this November election.

J SIMMONS
J SIMMONS
4 years ago
Reply to  RobbyDobby

From personal stories ((20+ yr WeHo resident) all the hoopla about the city housing providing assistance to wrongful evictions, has meant a show, but zero legal or other RRAL assistance. Then once wrongfully evicted, they are no longer WeHo residents and can’t even complain, let alone get redress, from the City, City Hall Housing Authority … And go missing from our WeHo population/community forever.

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