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Annual Increases in the MAR

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The Maximum Allowable Rent (the MAR) limits the level of rent actually demanded, accepted or retained by a landlord of a rent-stabilized unit. It is unlawful for monthly rents in rent-stabilized units to exceed the MAR. A landlord may pass-through one-half of the monthly prorated annual registration fee (currently $6.00 per month), but this pass-through is not rent and is separate from the MAR and should not be included when calculating lawful rent increases. Rent increases are limited by the rules and regulations governing increases in the Maximum Allowable Rent (for rent increases for pre-1996 tenants who are not yet paying the last banked MAR, view the related FAQ).

Landlords of rent-stabilized units may increase the tenants' rent by the amount of the Annual General Adjustment between September 1st and August 31st of each year if the landlord:

  1. Complied with the initial registration requirements under the Rent Stabilization Ordinance;
  2. re-registered the unit after vacancy if the current tenant moved-in 1996 or later;
  3. has paid all annual rent registration fees; and
  4. has waited 12 months since the tenants moved in or since implementing the last annual general adjustment.

The landlord must give the tenants proper written notice in accordance with current State law.

The Annual General Adjustment in rent is based on 75% of the Consumer Price Index for the area. The amount of the adjustment will be announced by the Rent Stabilization Commission each year before July 1st. Landlords who are current with their registration fees are notified of the adjustment's amount during July so that they can start giving increase notices by August 1st. The adjustment covers the period of September 1st through August 31st of the following year.

The Annual General Adjustment applies only to the Maximum Allowable Rent; the registration fee pass-through to the tenant does not increase unless authorized by the City Council. If the landlord is already charging the pass-through to the tenant, it must be deducted from the rent before the increase is calculated. The $6.00 is added back after the increased rent is calculated.

Since the 1996 general adjustment, a landlord loses the right to take the increase, if they do not charge it to the tenant during the year it is in effect. The adjustment cannot be banked and passed on to the tenant at a future date.

Landlords and tenants who want to check whether a rent increase for a unit is correct, may contact the Department. To do this, they must be able to answer the following questions:

  • What date did the current tenant move-in?
  • What rent is the tenant currently paying?
  • When and how much was the last rent increase?
  • To view a list of the past years AGA amounts click on the following link AGA History

If you have this information, you may contact an Information Coordinator at (323) 848-6450.