Legal Question in Real Estate Law in California

Not on lease...can new owners raise rent to ''Market Rate''?

I am a subsequent occupant of an apartment in San Francisco paying $880. The original lease holder no longer lives in the apartment. The building recently sold, prior to selling the previous owner asked us to fill out estofle (sp?) agreements. I guess these were given to the new owner in the disclosure agreement. In the agreement i stated how much my rent and deposit were and I bielieve I also stated I was not on the lease.

The new owner has presented me with a letter that states the rent on my apartment will now be $1250 because I am not on the lease, he will be raising the rent to ''fair market rate''. He has also offered me the one remodeled unit in the building for this price or I can stay in my apartment.

Is this legal?

I have been trying to interpret the rental laws but since he has only owned the building less then a month, I and having trouble.

Thanks


Asked on 1/16/03, 4:22 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Not on lease...can new owners raise rent to ''Market Rate''?

First, the 'agreement' you filled out in connection with the sale is called an estoppel letter or certificate; its purpose is to certify to a lender the existence and status of income-producing leases when a property is being refinanced.

Next, the legality of the rent increase may be governed by San Francisco's local rent control ordinance. I do not practice in San Francisco, at least not often, and I don't know all the ins and outs of that ordinance.

You didn't provide any information about whether the new or former owner is holding a security deposit, or who is entitled to its refund, so I suppose this is not a problem for you.

Your status, rights and the legality of the rent increase may depend (in addition to the rent control ordinance) on whether the original lease permitted assignment and/or additional occupants. In other words, if your occupancy was completely permissible in the first place, you probably have all the rights of a tenant, including the right to hold the landlord to the rent specified in the lease. If your occupancy was not permitted, you have considerably weaker rights and perhaps could be evicted if you don't negotiate a proper lease or rental agreement.

There are tenant advocacy groups in S.F. that can interpret your lease (or the former tenant's lease) and give you a better opinion based on the lease language and local laws.

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Answered on 1/16/03, 4:59 pm


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