pages: RentReviewAdvisoryCommittee/2018-03-05.pdf, 3
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RentReviewAdvisoryCommittee | 2018-03-05 | 3 | Approved Minutes March 5, 2018 Member Friedman asked Mr. Lee what his monthly costs relating to the unit were, and Mr. Lee replied that they were $2,250 per month. Mr. Lee distributed a list of income and costs that had not been previously submitted. It stated that the rent required to break even for the unit in 2017 was $1,557.01, and the cost to break even in 2018 is $1,814.08. Member Griffiths asked Ms. Kandel what the maximum she could pay was, and she replied $1,850 (a 7% increase). Chair Cambra asked and Mr. Lee replied that he had owned the building for 13 years. Chair Cambra noted that the rental amount Mr. Lee was requesting was $100 more than the cost of the unit, including vacancy costs. Chair Cambra advised Mr. Lee to continue to work with neighbors to have them fix trees that were causing problems. He noted that Mr. Lee's previous rent increases were reasonable and gradual, and commented how going from those smaller, more gradual increases to a 21% increase presented a difficulty for the tenant and the Committee in allowing the jump. He asked Mr. Lee if other units in the building were at market rate. Mr. Lee said they were. Chair Cambra asked for the gross monthly rent at the complex, and Mr. Lee replied it was $23,100 per month, and total expenses were $19,667 per month. Mr. Lee said he could come down from asking for $2,100 to $2,000 total rent, a $268 (15.5%) increase. Vice Chair Sullivan-SariƱana asked Mr. Lee when he anticipated having his vacant unit ready for rental and Mr. Lee said it's available now, but that he was having trouble finding a good tenant with the right credentials, stating that many applicants have "challenging credit." He said he was asking $2,350 for the vacant unit. Member Friedman noted that he believed the landlord's proposed cost for retrofitting the roof may be on the high end, and that he may be able to do the work for less than the proposed $200,000. Mr. Lee briefly replied explaining his reasons for coming to that number. Chair Cambra and Member Griffiths asked if Mr. Lee would be open to a stepped increase. Mr. Lee replied that he would be open to receiving a lower increased amount for the first three months of the following year, then $2,000 total rent per month for rest of the year. Ms. Kandel stated that her unit is on the ground floor and is not remodeled like others in the building that can fetch market rate. She said the unit was dark all the time due to little natural light exposure, and they had to keep the lights on all the time. Mr. Lee replied that not all other units are remodeled. He added that Unit C is also on the ground floor and was currently renting for $1,950. Page 3 of 5 | RentReviewAdvisoryCommittee/2018-03-05.pdf |