Q & A with Prop West

Q) When an apartment building changes hands, how much can the new owner raise the rent?

A) That depends on where the building is located and whether the tenants have leases or month-to-month rental agreements.

In a building in a city without rent-control ordinance, and with tenants not on leases, rents can be increased to market levels with 30-day notices, unless the hikes exceed 10% (including previous increases within a 12-month period). If the increases, or combined increases, exceed 10% , state law requires 60-day notices.

In a rent-controlled building, rents cannot be increased just because there is a new owner. Rather, the buyer will have to abide by the rent-control rules of the city in which the property is located.


(taken from Apartment Age, September 2008 and Apartment Management Magazine October 2008)

HAPPY HALLOWEEN EVERYONE!!!

Q & A with Prop West

Q) On a two story apartment building can an owner restrict children from not occupying the top floors?

A) Policies that designate certain buildings as "family units" and others as "adult units," or restricting children to ground floors or end units are illegal. The law dictates that all rental units in California must be made available to families with children. Policies that differentiate between children and adults are prohibited.


Q) Can an owner refuse prospective tenants due to the fact they are receiving federal or state subsidies?

A) The purpose of income qualifications is to ensure that the tenant will be able to pay the rent. The source of the tenant's income may not be used as part of the selection process, and the income qualification policy must be applied equally to all residents. Under no circumstances can income qualifications be used to exclude welfare recipients, minorities, or any other class of persons. As such, provided the source of income is legal, it doesn't matter where the money comes from, so long as they have it.

(take from Apartment Management Magazines October 2008)

Q & A with Prop West

Q) Can an owner have a "no smoking" policy in a building?

A) There is not law that would prevent you from instituting this policy. If you have a rent control building you could not institute this policy to existing tenants. It would only be enforceable against new tenancies.


Q) A rent controlled building is all occupied and the owner would like to move into one of the units. The tenant has children and has lived there several years. Is the owner able to move into the unit?

A) The owner does have the right to move into this unit. Clearly the landlord, for economic reasons, should take the unit that has the lowest rent. The owner is required to pay relocations assistance to this tenant. Currently the amount would be $17,600.00.

(Taken from Apartment Owners Association News September 2008)

Q & A with Prop West

Q) An apartment has two roommates and if one roommate gives a thirty-day notice to vacate the premises, as a landlord must I give half portion of the security deposit to him?

A) The premises was leased to a "partnership" consisting of two tenants. No security deposit needs to be returned until such time as the "partnership" vacates the unit. It should be further noted that the vacating tenant is still responsible for the rent until the tenancy is finally terminated. The vacating tenant should be informed to get reimbursed for his security deposit from the remaining tenant.

Q) A property is under rent control and the tenant received a 3% rent increase notice and refuses to pay the increase. If the monthly check is accepted, does that nullify the rent increase notice?

A) A landlord can accept the check and it will not invalidate your rent increase notice. The landlord could then serve a 3-day notice to pay for the balance owed. However, some judges are reticent to evict a tenant over a small rental deficiency and the best solution would be to not accept the rent and to issue a 3-day notice for the entire rent.

(Taken from Apartment Owners Association News October 2008 )

Q & A with Prop West

Resident Manger

Q) As an owner of an apartment building, how do I know if my building requires a resident manager?

A) If the apartment building has under 16 units your building doe not require a resident manager. If your apartment building consists of 16 rental units or more, the owner is required to have a "responsible person" residing on the premises. Usually that person is a manager, but he or she could also be a resident janitor.

Smoke Detectors

Q) How many smoke detectors are required in a two bedroom home or apartment with a utility room.

A) By law smoke detectors are required to be put one in each bedroom and one in the hallway.


(Taken from Apartment Owners Association News January 2005)