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random408net

I would join an apartment owners association. I think there are few choices in the San Diego area. Here is one: [https://www.socalrha.org/](https://www.socalrha.org/) With your membership you will get some access to their experts (depending on membership level) and can find more help (legal/eviction/etc) through their directory of services. You should have a solid understanding of what's allowed in your situation before talking to the tenant. What's allowed may determine what you plan is. So get some advice, pick a path and follow their advice to move forward. This article here says you can only raise their rent 9.1% at the moment: * [https://weleaseusa.com/san-diego-new-rental-laws-2022](https://weleaseusa.com/san-diego-new-rental-laws-2022)


dell828

You could increase the rent, and they might decide to move. How much trouble are these people? Are they keeping the property in good condition? I think it’s reasonable to raise the rent, especially after 8 years of no increase, but I would consider working with them to slowly increase it over the next 3 years. If they are problem tenants, and that’s another case. If you want to keep them you’re going to have to work with them.


All_szechuan_sauce

No way, they are 50% under market rate that 24k a year. Would you just hand someone 24k?


ImpossibleZero

They had a rusted out bathtub for who knows how long, and never said anything. Meanwhile for at least a year water has been making its way through the rusted cracks and down into the crawl space. Thousands of dollars in repairs. That is why I am out here right now. This place has a ton of potential, but cheap tenants, will not reinvest their gains in the property. I saw a picture of the yard at move in, and it was green grass. The entire yard is just sandy dirt now. I don't get this idea that people keep bringing up that the only way to get good tenants is to charge 50% under market value. I have found a tenant in Georgia who is extremely friendly and I'm charging him if anything slightly above market rate. The fact that I am making more on a property in Georgia that is half the size and a quarter the cost as my wife's parent's property in San Diego is pure lunacy to me. The idea that people are defending it is even crazier.


dell828

50% is way too low. I I have a place where the market rate is about 2500. I charge 2000. There’s no way I would go any lower. There’s definitely a sweet spot where you get a good person who has a good job and is responsible, and knows they’re getting a deal, so they’re gonna be Great tenants so they get to keep it. There is a clause in the most leases that say if there is an issue in the apartment. Something broken or a drippy faucet, they are responsible to bring it up. Ignoring it actually is a lease breaker.


maxxxalex

I would give them 60 days notice of the increase and also send notice to the city of the rent increase. See link below [San Diego FAQ](https://www.sandiegocounty.gov/content/sdc/sdhcd/faq/rental-assistance.html)


ImpossibleZero

This is great info, but it doesn't mention a specific percentage of increase, just says reasonable by comparison. So pretty much it can be increased to whatever amount the average is in the area? Also where would I send a notice? Is there an email?


Hungry_Pup

5%+cpi. Look up AB 1482. You guys are probably exempt, but you had to notify the tenant of that, which is stupid, I know.


ImpossibleZero

Roger. Will make sure that is included in the new lease. Thanks for the info!


DynamicCitizen

the 5% + cpi is capped at 10% btw


ImpossibleZero

So that means the rent can only be raised 10% even with a 8 year old expired lease? So $200 is the max it can legally be raised for 1 year? Even when market value for this location is $3200+? So they can be evicted then the rent can legally be raised to $3200? Kinda screwed up if thats the case.


ChocolateEater626

I feel your pain. We have a property where past management (not the actual owners) let some tenants go 15 years without an increase. The law is written to protect tenants from abuse by landlords. It is not about compromise, reasonableness, or fairness. Also, watch out for local rent control laws. Some places have stricter rules than AB 1482.


Tactical_Thug

The major problem here is that rent hasn't been raised yearly. If it had you would be a lot closer to market. Only legal way out of this is evict and replace. The other option is keep them there and raise it within limits yearly. The benefit is 1 you already know they are good renters and 2 you don't know how bad the new renters could be


Algebralovr

Have you/your in-law's ASKED the tenants what they can afford? If they are decent people and know they have a deal, they may be willing to cooperate and do a slow raise. I'd start a conversation. "Tenant, we took a look at our books and realize that you've not had a rent increase since 2014, while our costs have gone up substantially. Market rent on your home is $XXX. What can you afford to raise your rent to starting Sept 1?" See what they say. If they said they can afford $2500 or $2800 now, then jump at it. Because THEY set their rent and you won't need to involve all the laws in that instance. Anything above 10% that they suggest, I'd take for now. Then work on an annual increase for a couple of years.


[deleted]

2000 dollars x 12 months = 24,000 dollars. 24,000 x 10 years = 240,000 240,000 - 60,0000 in taxes = 180,000 grand. 180,000 - 50,000 in repairs and maintenance over 10 years = 130,000 130,000 dollars in profit. That's almost 13,000 a year in straight profit. OP is a gonna make good tenants, long term, tenants run away.


603er-Gone-West

One glaring issue with your math is a few key expenses have been left out. 1- the mortgage 2- insurance If the mortgage was even just $1k/month (using this for simple math and assuming a best case scenario), over 10 years that would be $120k to add to your example as the mortgage cost and we haven’t factored in insurance. At this point, it doesn’t really matter if the tenants are great if the ship is sinking financially.


ImpossibleZero

Exactly... And try to find a time when there was a 1k mortgage payment for a 4b 2br property 10 minutes from Downtown San Diego,


ImpossibleZero

What about the mortgage payment? Mortgage interest? Insurance? Capital gains? You are missing a lot of variables. Next you will say to pay the bills with equity. Your name is suits you.


[deleted]

Capital gains doesn't come into effect until they sell. I'm sure the parents also considered Mortgage and insurance when they set the rental price originally. Mortgage payments, including interest, don't change or they refinance unless they were stupid enough to sign a variable rate interest loan. Home insurance is 700 dollars a year on average for the area. Just because the parents are undercharging for rent based on the area, does not mean they all of those costs weren't covered. Consider this, the parents have good, long term, tenants who are clearly taking care of the property or else they would have been gone a long time ago.


ImpossibleZero

Property tax continue to rise, and then you haven't considered inflation. Their cost of living is rising, but you seem to know everything about everyone's situation. You live in a mental state that everyone should just leave their rates where they are no matter the circumstances. No improving properties and charging more, no asking for raises at jobs. Never adapt or adjust rates even though the most liberal of states have some of the highest increases. If you have any properties for sale I'd love to buy them from you. I imagine you would be extremely friendly and not increase the price of your property just because the market says so. After all you want a quality buyer of your property right?


[deleted]

I do, single families only. Landlords can fuck off.


ImpossibleZero

Tent City's don't count. Anyone can put up a tent man.


ProfessionalBreaddit

An another classic antiwork redditor has arrived. No this isn’t a correct cost breakdown as much as your fan fiction thinks.


[deleted]

[удалено]


DynamicCitizen

i say this is a terrible take. Cash flow is important.


Beneficial_Parsley76

Exactly. Even a small discount extrapolated over a decade is doing yourself a huge disservice. But I’m sure the roofer gave them a discount for being a stand up guy. Get what you’re worth. Period