pages: RentReviewAdvisoryCommittee/2017-10-02.pdf, 2
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RentReviewAdvisoryCommittee | 2017-10-02 | 2 | Draft Minutes October 2, 2017 Mr. Sullivan stated the purpose of the rent increase is related to a need for additional income because the landlords are retired and have a fixed income. Mr. Sullivan stated that Ms. Adams has been a good tenant for 13 years. The landlords are requesting this increase due to the property's operating costs and the landlord's interest in a return on the investment. He stated that market rate for a comparable unit would be near $4,500 and the rent increase is an effort to raise the rent closer to market value. Mr. Sullivan explained that $7,500 has been spent to repair the roof. Additional expenses are anticipated for further repairs. Ms. Adams stated that she had resided at the unit for 13 years and has completed many repairs herself. She raised concerns over current maintenance issues and stated code enforcement is currently reviewing the property. She explained that there have not been repairs or improvements that would justify the requested rent increase. Committee members asked to review supporting documents related to the maintenance issues. The parties discussed issues the timeline and nature of roof repairs. Staff clarified that the Building Department resolves concerns regarding code violations. Ms. Adams stated she would be willing to pay a $250 increase if repairs were completed. Mr. Sullivan was not willing to accept less than the proposed increase. Motion and second for 15 minute extension passed the 40 minute review (Cambra and Friedman). The parties were unable to reach an agreement. Committee members concluded the conversation with tenant and landlord and opened deliberation between members to render an advisory recommendation. Member Friedman identified three considerations for this case: 1). what is reasonable rent for this property; 2). what is the landlord's reasonable return; 3). how does the housing services and condition of the maintenance issues impact the reasonable rent. Friedman noted that had the rent increased around 3% each year over the 13 years of tenancy, the rent would be around $2,850. This would have helped create a reserve for repairs. He noted that he did not hear the tenant raise financial concerns regarding the rent. Friedman explained the landlord has the option to get a loan for the repairs. He recommended a $400 rent increase, noting the landlord has the option to increase rent the next year. Member Sullivan-SariƱana stated he agrees the difficulty of the current situation appears to be stemming from the lack of previous rent increase over the tenancy. He does not believe that the tenant should be punished for the landlord's business decisions. The timeline of maintenance issues causes him concern that the tenant has decreased housing services for an extended period of time. He acknowledged that the option for a roommate is important to consider given the Bay Area housing Page 2 of 5 | RentReviewAdvisoryCommittee/2017-10-02.pdf |