pages: RentReviewAdvisoryCommittee/2019-02-04.pdf, 3
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RentReviewAdvisoryCommittee | 2019-02-04 | 3 | Approved Minutes February 4, 2019 increase 5%, making it hard to afford a 5% rent increase, as their budget was already tight. Ms. Mizrachi stated that this property had 53 units and was acquired by the current owner in 2007. She said the building's income was about $1,000,000 per year, with annual operating costs of about $475,000 and a debt service of about $485,000, which did not leave much profit left for the owner. She said the building had a 10% monthly vacancy rate, the owner was required to have a reserve, and the owner was currently facing a deferred maintenance issue that would cost about $150,000 that would deplete the reserve of $100,000. She stated that the tenants did not receive a rent increase in 2018 and responded to the tenant's maintenance concerns by stating that she had reviewed the owner's records and found no outstanding maintenance issues for the building. She said that they had done work on the elevator and it was currently functioning and added that maintenance issues were taken care of within 24-48 hours. Mr. Waters replied that the elevator had not been running properly for several months, and he received no reduction in rent for the decreased service. He again voiced concern that rent increases continued to outpace increases in his income. He pointed out that the landlord owned another property from which they also received income and said that since their tenancy began their rent had increased by 19.48%. Ms. Mizrachi replied that the owner owns property at 935 Santa Clara, but that building was currently vacant because they had to relocate some tenants and others moved out so the owner could do plumbing and electrical work there. She said the owner ran at a loss of $87,000 last year on that building and had to continue paying a mortgage on it, adding that the owner was waiting for the issuance of permits to continue some of the needed work there. She said that in 2016 the tenants received an 8% rent increase, and a 5% increase in 2017. Member Chiu noted that the tenants had indicated on their paperwork that they believed no rent increase was reasonable this year, and the tenants confirmed that this was a position they wished to maintain. Member Chiu asked the tenants if there were any outstanding maintenance issues and they replied that there was a leak in the bathroom sink. The tenants said that the leak was still not fixed even after management sent someone into the apartment without providing them notice. Member Chiu asked the tenants if they reported the elevator not working and they replied that both they and other tenants did. Ms. Schmidt added that there is a disabled tenant in the building who needs the elevator and that this issue was not resolved in a timely matter. | RentReviewAdvisoryCommittee/2019-02-04.pdf |