Need advice on increasing rent


I am planning to increase the rent on my rental property. The current tenants have been staying in the place for around 18 months. They original signed a 1-year contract which got over and are in the month-to-month now. I am planning to increase the rent by 15%. The property is near the Rivermark in Santa Clara.

What is the process involved in notifying the tenants about the increase in the rent…? Should I provide a 30 day notice that the rent will increase to the new amount by next month. Are there any rules around how much the rent can increase in Santa Clara County…? I did a cursory search and found that there is no rent control.

Thanks for your responses…


Here’s my advice. First, you waited to long to increase the rent. Annual rent increases should be the norm. Second, you are increasing the rent too much, unless you want the tenant to move out. If you have a good tenant then you should increase it about 5% a year under current economic conditions. Third near rivermark can mean san jose or santa clara. Santa Clara county and the city of Santa Clara have no rent control. San Jose does.

Agree with @sheriff. Assuming you charged close to market rent at inception, 15% over 18 months is too greedy.

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Hold on, let’s not crucify the guy now before we know all the facts.

First of all, how do we know his initial rent amount was not below market, so that the requested increase now is actually justified? OP, do you use Rentometer? If not, the basic free sign-up allows one to check rent rates for your specific sized home in the area. Craigslist of course is available too but of course that is just asking rent.

With more information, folks here should be able to help you out.

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In agreement that 15% jump is hard to digest unless there were upgrades performed or some other special circumstances. You are likely to push the tenant out unless you are still below market.

Why not increase 7.5% now? That’s 5% annual rate since 1.5 years has passed. You can give a 30 day notice.

For over 10% increase, you need to give 60 day notice.

If you really want to increase 15%, you can give an option of 7.5% increase and 1 year lease. If they want month by month, let them pay 15% increase for the lack of loyalty. Some tenants are not loyal and would move for $100 difference.

Santa Clara city has no rent control. I usually charge a rent 5-10% below market to cultivate tenant loyalty and also reward the city for not imposing rent control. There’s no point to charge the top rent and create vacancies. 1 month vacancy is 8% rent reduction


@sheriff @harriet @sfdragonboy @ww13 @BAGB Thanks a lot for all your responses. This is very much appreciated!!

A small tech start-up had rented the 4bed townhouse near Rivermark for $4300. The start-up is providing accommodation to their Engineers as a perk. I was planning to raise the rent by 15% for the following reasons:

  1. One of my friends in the nearby community rented his 3bed townhouse for $4250.
  2. Another 4bed townhouse in the community just went for rent at $5K. The landlord did not quote $5K, but two parties who wanted the house went into bidding and increased the rent to $5K.

I rented my house around December and there was not much interest in the house. I guess not many people like to move at that time. If I have a new agreement now, then it makes it easier to rent next time if the current tenants vacate by August.

I am planning to increase the rent to something less than 10%. I will share my experience shortly.


Dang, sounds you and your buddies are getting prime rent…

I just did a Craigslist search for Santa Clara (4 bd, house, townhouse) and found 16 listings. Is that a lot or not? Again, I am def not up on the area like everyone else here but with some competition sounds like it may mean that you need to price accordingly to just get it rented out without any more downtime (time is money). Good luck! Tell us what eventually happened!

Essentially the startup sublet your rental, right? I encountered and rejected many such kind. You should ask for more than the rental for a family. At least 10% above. I would ask for 20% above.

For single family home you can increase to whatever you want, 15% is not so much if you rented it under market rate. but make sure to search the web to check if any similar homes listed cheaper than your rent increase, that way it make sure it’s the market rent.

Look at this listing. 3.6 cap in the worst part of Redwood City. One bedrooms and studios. Net income without management costs $95k… $2.7m
My units In SLT net $90k. … asking $1.2m

Which will have the highest IRR in ten years?

Pretty BS numbers. Prettied up to try to get to their asking price. They are assuming 50% down and even at that, the debt servicing will consume almost all of their rosy cashflow. Anyone that buys this place at this price deserves everything they are going to get.

Plus studios and one bedrooms are tough to manage. High turnover, lower quality tenants and low cash flow.

It is me again!!. I have one more question. When you provide the 30 or 60 day notice of rent increase to the renters. How much time do the renters get to accept or reject the rent increase. Assuming I decide to do more than 10% and give a 60-day notice on 08/15, do they get 10 days period to accept or reject the rent request. If they do accept, I presume they would sign a contract immediately thereafter. Can I get a good faith rent for the first month with the signed contract…? the first month rent will possibly let them not to back out…


I never heard of a tenant being able to accept or reject a rent increase. If you give them a notice of a rent increase they either pay the increase or give you 30 days notice that they are moving out. If you give them a 60 day notice I guess they get 30 days to think about it but they don’t have to respond until 30 days before they move, and that’s only if they are going to move out. Otherwise you can expect them to pay the increase.


more landlord like this will justify rent control throughout the country.

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