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)

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