What kinds of rent increases can be disputed in rent control properties?
The rent for existing tenants can never be raised more than once a year, regardless of the amount of increase, unless the affected tenants voluntarily agree to the increase. An annual increase of 5%, or 70% of the applicable C.P.I., is presumed valid, and is not subject to being disputed. A landlord seeking to institute an annual increase rent beyond the 5% level must justify the increase under the “pass-through” formulas, if the tenants file a challenge with the Dispute Resolution Program. These pass-through formulas are the only justifications for annual increases beyond the 5% limit, unless there has been no increase for the last two years. In that situation, the landlord is permitted to institute a 10% increase without dispute.
