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Code Compliance BHrent Rent Increases/Adjustments
Rent Increases/Adjustments

Tenant Types

Chapter 5 Tenants
Chapter 5 FAQ (rev March 2017)

  • Tenants whose most recent lease or rental agreement stipulates a move-in rent of $600 or less per month are Chapter 5 tenants.  You may call 310-285-1031 to hear the current allowable Chapter 5 rent increase or refer to the chart at the right. Refer to the Urgency Ordinance below for changes in the Chapter 5 tenant relocation fees.

Chapter 6 Tenants
Chapter 6 FAQ (rev March 2017)

  • Tenants whose most recent lease or rental agreement stipulates a move-in rent of $601 or more, per month, are Chapter 6 tenants.

NOTE:  The determination of whether a tenant is covered by Chapter 5 or Chapter 6 regulations is based solely on the initial rental amount stated in the most recent, valid lease or rental agreement and not on the current rent amount which is the result of rent increases over time.  For example, a Chapter 5 tenant's current rent may be $1000 per month due to increases over time; however, the tenant remains a Chapter 5 tenant if the rent stipulated in the most recent valid lease or rental agreement was $600 or less per month.

Chapter 5 Tenants

A property owner may increase rent one time within any twelve (12) month period with a 30-day written notice [Section 4-5-303(a)] which must be sent by First Class Mail and have a five-day postmark. Therefore, the minimum notice time required is 35 days [Section 4-6-3(a)(c) and California Civil Code Section 827(b)(1)(B)(2),(3)].

The amount of increase shall be 8% or the average Consumer Price Index (CPI) figure, whichever is less at the time of the increase.


Chapter 6 Tenants

A property owner may increase rent one time within any twelve (12) month period; from 0% to 3% or the current Consumer Price Index (CPI) for the Los Angeles/Riverside/Orange County area with a minimum 30-day written notice if personally served to the tenant. However, if the notice is sent by First Class Mail, the minimum notice time required is 35 days [Section 4-6-3 and California Civil Code Section 827(b)(1)(B)(2),(3)].

A property owner may pass through a utility surcharge related to a refuse fee or water penalty and/or surcharge.

3 Percent Maximum Rent Increase: effective as of January 24, 2017, no landlord may raise the rent of a unit subject to Chapter 6 regulations more than 3 (three) percent per year, or the increase of the Consumer Price Index (CPI) for the Los Angeles area between May 1st of the current year and May 1st of the immediately preceding year, whichever is greater (Beverly Hills Municipal Code – BHMC – Section 4.6.1).  Prior increasing the rent, the landlord must provide written notice to the tenant. The notice must be delivered to the tenant at least 30-days prior to the rent increase, if personally served to the tenant, or 35 days if the notice is sent by First Class Mail [Section 4-6-3 and California Civil Code Section 827(b)(1)(B)(2),(3)].

It should be noted that only certain surcharges or penalties related to water and refuse collection may be passed through to tenants in addition to the permitted annual adjustment. Beverly Hills Municipal Code – BHMC – Section 4.6.7 and Section 4.6.8). 

Rent Adjustment Application: Should a landlord believe he/she cannot receive a fair and just return from his or her property with the annual permitted increase, he/she may apply for a greater rent adjustment.   The City is establishing an application process for the adjustment that will require the landlord to demonstrate that he/she cannot receive a fair and just return using net operating income principles.  (See  Section 4-6-13B.)  Upon receiving an application for an adjustment from the landlord, the City will inform the landlord and the tenants when the  hearing on the rent increase application will be scheduled before a hearing officer.

It should be noted that only certain surcharges or penalties related to water and refuse collection may be passed through to tenants, in addition to the permitted annual adjustment.  Beverly Hills Municipal Code – BHMC – Section 4.6.7 and Section 4.6.8). 

 

Rent levels for new tenancies.  The allowable rent level after a vacancy depends on the reason for the vacancy.    After a voluntary vacancy occurs for a given unit, rent levels for that unit are subject to whatever rent is agreed to by the incoming tenant and landlord (sometimes referred to as “market rent”).  For evictions, the following applies. 

  • Just-Cause Eviction. If a tenant is evicted for specific causes set forth in Chapter 6 (a “just cause eviction”) the rent level for the new tenant will be “market rent.”   The just-causes set forth in the ordinance are:
    • failure to pay rent [Section 4-5-502]
    • violation of obligation of tenancy [Section 4-5-503]
    • maintenance of nuisances [Section 4-5-504]
    • illegal uses [Section 4-5-505]
    • refusal to provide access [Section 4-5-507]
    • unapproved subtenants [Section 4-5-508]

No-Cause Eviction and Other-Cause Evictions. If a tenancy is terminated for other reasons than those set forth above, or for no stated reason, the rent for a subsequent tenant cannot exceed the rent of the evicted tenant (plus any permitted annual adjustment including certain utility charges or penalties related to water and refuse collection, should they apply).

Security Deposit Interest

Beverly Hills does not require that interest be paid on security deposits.

 
Contact BHRent
CONTACT: Beverly Hills Rent Stabilization
ADDRESS: 455 N Rexford Drive
Beverly Hills, CA 90210
EMAIL: BHrent@beverlyhills.org
URL: www.beverlyhills.org/BHrent
DEPT PHONE: (310) 285-1031
 
CPI
Rent Increases/Adjustments

2017*

November - 1.0%

October - 1.0%

September - 1.0%

August - 1.0%

July - 1.0%

June - 1.0%

May - 1.0%

April - 1.0%

March - 1.0%

February - 1.0%

January - 1.0%

2016*

December - 1.0%

November - 1.0%

October - 1.0%

September - 1.0%

August - 0.6%

*Month - CPI Adjustment

Maximum Allowable Rent Increases

Chapter 5: 8% or CPI Adjustment which ever is less.

Chapter 6: 3% or CPI Adjustment which ever is greater.**

**Maximum of 10% increase allowed for increases which took effect prior to the January 24, 2017.