Q&A for Apartment Rent Ordinance
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Does the City of San José regulate rent increases?
Yes. San José has two ordinances which regulate rent increases, one for mobilehomes and one for apartments. This brochure is about the Ordinance which applies to apartments.
Are all kinds of rental property covered under the Ordinance?
No. The exemptions include single-family dwellings, duplexes, condominiums, hotels, boarding houses which are rented to transient guests for periods of less than 30 days, non-profit homes for the aged, school dormitories, rental units owned and operated by any government agency, and any new rental units first rented after September 7, 1979.
How often can rents be raised?
No more than once in any twelve-month period
How much can rents be raised?
Apartment rents can be raised without a hearing by 8%. They can be raised 21% if the last increase was more than 24 months ago. A landlord can propose a larger rent increase, but it can be contested by the tenant.
What can I do if my rent is raised over the 8% guideline?
You have the right to file a petition with the Rental Rights & Referrals Program. The petition is an individual complaint form and seeks a hearing on the rent increase.
Can I file a petition by e-mail?
No. An original signature is required so that, if it is needed, future correspondence from you can be verified. Contact the Rental Rights & Referrals Program for a copy of the petition form by telephone, 408.975.4480 or by e-mail.
What is the petition filing deadline?
The petition deadline is the day before the effective date of the rent increase. Petitions must be delivered to the Rental Rights & ReferralsProgram or postmarked by then. However, you always have at least 10 days after the rent increase notice to file a petition.
What happens if I do not file or miss the deadline?
If you did not file a petition by the deadline, you will not be eligible for a hearing. You may have, in some situations, the right to contest the rent increase in small claims court.
Your landlord is required to include with the rent increase notice, a notice of your right to file, and where and when you may file a petition. If you did not receive this notice you may file a lawsuit in small claims court to cancel the rent increase and receive payment for any damages you suffered.
How much rent should I pay before the City makes a decision on the rent increase?
If you file an eligible petition you should pay an 8% increase.
The difference between the 8% paid and the proposed rent increase is deferred pending a decision. In some situations the landlord may be justified and allowed to raise the rent above the 8% amount, and you would be obligated to make up the difference. We recommend that you set aside the difference.
Will the City notify me when it receives my petition?
Yes. You will receive either a notice of the hearing date or a notice that your petition is not eligible for a hearing.
When are the hearings?
They are generally on a Monday through Thursday night, between 7:00 and 10:00 p.m. Most hearings are held at City Hall (801 N. First Street).
What are the hearings like?
They are private, administrative hearings, and are generally similar to small claims court.
There are two types of hearings. The first is a "mediation hearing", and the second is an "arbitration hearing".
Are the hearings public?
No. These are administrative hearings and should be attended only by the landlord, designated representatives, petitioning tenants, witnesses, and advisors.
What happens at the mediation hearings?
The hearing officer will review any documents submitted, hear testimony, and discuss the case with the tenant(s) and landlord. Many cases are settled by a voluntary agreement between the landlord and tenant(s). The hearing officer will assist both sides to arrive at an agreement, if this is the result they wish.
What if an agreement is not possible?
The hearing officer will consider the evidence and testimony and issue a decision within ten (10) days. This decision can be appealed with a final decision by an arbitration hearing officer.
If an appeal to arbitration is filed, do we still have to follow the hearing officer's decision?
Yes, you must follow the decision even when an appeal has been filed.
What happens during arbitration?
The arbitration hearing officer will review the case and can request more information. A hearing will be held and the case discussed. Within 17 days of this hearing, the hearing officer will make a final decision. This decision is final and legally binding on the tenant(s) and landlord.
What about reductions in services?
Housing services are those services agreed upon or required by law. A reduction in services without a corresponding reduction in rent is a type of rent increase. You can make a written claim on any services reduced within the last twelve months (a claim form is part of the petition). You will have to prove at the hearing that the service was reduced.
What about health and safety problems?
Hearing Officers can consider evidence of Housing Code violations or of violations of California Civil Code Sections 1941.1 and 1941.2 and can reduce, disallow or condition rent increases based on their severity. Tenants have the burden of proving this type of claim.
Can the hearing officer order repairs made?
No. The hearing officer can only set the amount of rent. A voluntary agreement may provide for repairs to be made. Other programs can assist with getting repairs made, such as the Legal Aid Society's Housing Project, (408) 283-1540, the Asian Law Alliance, (408) 287-9710 or the City's Code Enforcement Division, (408) 277-4528.
When can a rent increase over 8% be justified?
A landlord may justify a rent increase based on increased expenses and economic factors. Expenses include capital improvements, maintenance, rehabilitation, and new mortgages.
What limits are placed on the landlord's cost claims?
Landlords have to document their costs claims, just as tenants have to document their service and code violation claims. Some types of cost claims are limited, but if a landlord can meet these limits and documentation requirements they can raise the rent above 8%.
Landlords can claim a net increase in operation and maintenance costs, capital improvement and rehabilitation costs, plus 5% of your current rent, in coming to an amount about the 8%.
What about mortgages?
A landlord can pass on a portion of any increase in mortgage costs. The size of the portion depends on the percentage of the value of the property that was financed.
Can rent be raised to a new tenant?
In some circumstances it can be. If the prior tenant was evicted by a court for non-payment or other material violation of a written rental agreement then the rent can be raised. Rent can also be raised when the prior tenant moved voluntarily.
Can rent be raised when my roommate moves out?
It can be raised if your rental agreement defines "vacancy" as any of the tenants vacating the rental unit.
What if my landlord does not want to comply with the hearing officer's decision?
Both tenants and landlords may have the right to seek judicial review of decisions. Landlords who demand, collect or keep any rent increase in excess of the amount allowed by the hearing officer can be ordered by the courts to pay the tenant the excess rent plus as much as three times the excess rent in addition. Problems of this type are rare, however.
My security deposit is being increased. Can you do something about it?
Security deposits are governed by State rather than City law. The City funds the Legal Aid Society's Housing Project, (408) 283-1540 and the Asian Law Alliance, (408) 287-9710 to assist you with this and other housing problems.
Besides security deposits, may any charges from the landlord be made in addition to the rent?
Penalties for excess water usage are during droughts can be divided between the landlord and the tenants. There are rules governing how these charges may be made and the Rental Rights & Referrals Program, 408.975.4480 will resolve disagreements.
What about evictions?
It is illegal for a landlord to evict you for filing a petition, for tenant organizing or in order to raise rents on a new tenant. You can use your rights in court to stop such evictions, and agencies such as the Legal Aid Society's Housing Project, (408) 283-1540 and the Asian Law Alliance, (408) 287-9710 can assist you with information on how to do this.
Can a tenant waive in advance his rights under the Ordinance?
Apartment tenants and landlords can sign a limited multi-year lease or rental agreement in a hearing. Future rent increases and other items specified by the lease would be exempt from the Ordinance; but anything not mentioned in the lease would still be covered by the Ordinance. All other advance waivers are prohibited.
How can I prepare for the hearing?
There are several things which you can do. Since most cases are resolved by negotiated agreements you can consider negotiating a settlement either before or during the hearing.
Secondly, you can review any earlier cases at the same rental complex (case files are public records). This may show you what claims and evidence was presented at earlier hearings.
Finally, you can study the Ordinance and Program Regulations. The Ordinance is Chapter 17.23 of the Municipal Code can be reviewed on the City's web site. The Ordinance and/or the Program Regulations can be mailed to you free at your request. Program staff can answer questions on the Ordinance and Regulations, but can not prepare your case for you.
Click below to get a copy of the Ordinance and Amendments to the Ordinance:
Who oversees and administers the program?
The program is administered by the City of San José. The Advisory Commission on Rents is composed of two landlords, two tenants, and three neutrals. The Commission advises the City Manager and City Council on changes in the Ordinance and Regulations. (The Commission does not make decisions on whether a particular increase is reasonable).
Where is the program located?
Rental Rights & Referrals Program
200 East Santa Clara Street
San Jose, CA 95113-1305
408.975.4480