Other MAR Increases

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Added Housing Service and N.O.I. Hearings

The rent on an individual unit may be increased if both the landlord and the tenant voluntarily agree to the addition of a housing service (such as a parking space or stove) and the landlord files an Add-Housing Service form with the Department. This process is limited to housing services that are easily added and removed. Thus, you might be able to add a window air conditioner but not central climate control using this process. The increases are also based on the department's amortization rates for the added service's cost over time.

The sum total of all increases for added housing services using this process is limited to 10% of the base rent established for the unit. The base rent is the rent registered with us as being charged on April 30, 1984 for tenants who moved in before 1999. For tenants who moved-in 1999 or later, the base rent is the initial rent that the landlord charged the current tenant.

Increases for adding housing services to a property's common area are limited to security-related services (fencing, security gating, etc.), provided 75% of the affected tenants agree to the addition.

For specific information and/or to receive an application form, please contact the Department at (323) 848-6450.

Net Operating Income (N.O.I.) Increase Hearings

Under the West Hollywood Rent Stabilization Ordinance, landlords are assured that the Net Operating Income from their property may increase at 60% of the percentage increase in the Consumer Price Index over time. If this has not been the case between the base year (1983 generally) and the current year, the landlord may apply for a hearing to adjust the Maximum Allowable Rents on a property upwards. For instance, if the CPI increased by 10% between base year and current year, then landlords are entitled to a 6% increase in the net operating income (60% of the increase in the CPI) for the property as a whole during that time period.

In calculating the net operating income for the property, landlords may include both incurred and planned costs from repairs or capital expenditures that diminish the operating income of the property.

If a Rent Increase Application is submitted to the Department, a hearing will be scheduled at which the landlord will explain their circumstances and a decision on the increase request will be made.

The Ordinance does not allow for debt service or mortgage payments to be included in the application.

For more information about the NOI application.

If an increase is granted for the MAR of each or certain units, the increase in the tenant's rent is limited to 12% the first 12 months after the decision is final. The second year, the rent may be increased to the full corrected MAR and the landlord may receive interest on the delayed full increase for the next twelve months. This interest is removed from the unit's MAR after the twelve months end.

Because there are many restrictions and requirements related to this type of rent increase, landlords are advised to contact the Case Analyst in the Legal Services Division at (323) 848-6438 for more information.