pages: RentReviewAdvisoryCommittee/2018-06-06.pdf, 2
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RentReviewAdvisoryCommittee | 2018-06-06 | 2 | Approved Minutes June 6, 2018 Mr. Gravelle stated that they were looking for a 10% increase and had submitted documents showing that their costs of operation have increased. Ms. Gravelle added that they take care of the property and they had just hired a gardener to maintain the outside of the property. Member Murray asked for specific monetary amounts of the costs the landlords have incurred. The landlords stated that in 2016 they made $16,000 of improvements on the property. Ms. Gravelle provided the Committee with specific dollar amounts of costs that have increased, including taxes, utilities, and insurance. She added that they had only increased the rent twice since the tenancy began six years ago. Ms. Vazquez requested that Carlos present her perspective on the rent increase. (Carlos was later introduced as her ex-husband who was there to support her during the hearing). Carlos stated that a 10% increase would create a financial burden for Ms. Vazquez. He acknowledged that the landlords made improvements to the property, but stated that the improvements were not to Ms. Vazquez's unit and therefore did not directly benefit her. He said that both the back and front yards were not well maintained. He said that the landlords have not had a gardener and it's uncertain if they will keep the new gardener they claim to have hired. He said that Ms. Vazquez was not opposed to any increase, but believes 10% is excessive. He mentioned that the tenant used to pay the PG&E bill, but that the landlords pay it now. Chair Cambra asked the landlords why they started paying the PG&E bill. Mr. Gravelle replied that when they renovated the laundry room, the new dryers they put in were powered by gas, the meter for which was not severable from the tenant's unit. In order to proceed with the renovation, including the new gas-powered dryers and to ensure that Ms. Vazquez was not paying gas for the common laundry room, they took over payment of her gas bill, which amounted to about $25 per month. Mr. Gravelle stated that prior to hiring the new gardener, his son would periodically do grounds keeping work, but not regularly and the grounds keeping will now be done regularly by the new gardener. Vice Chair Sullivan-SariƱana asked the landlords why they did not ask for smaller rent increases over several years instead of one larger one. Ms. Gravelle acknowledged that this would have been better with hindsight. Mr. Gravelle added that when they were doing their taxes this year they realized they needed to have more income from the property. Member Murray asked the landlords what the purpose of the property was for them. Mr. Gravelle stated that he hopes to have income from the property as part of their retirement income, as he was retiring in about one and a half years. Member Murray asked if they were currently running at a profit or loss. Mr. Gravelle stated that in prior years they were running at a loss, and that more recently they may be just breaking even. Page 2 of 7 | RentReviewAdvisoryCommittee/2018-06-06.pdf |