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  1. #1
    Join Date
    Oct 2008
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    4

    Default Rent Increase Percentage and Rounding to the Next Dollar

    My question involves accounting practices in landlord-tenant law in the State of: CA

    I live in a senior mobile park and the rental increase notice states
    That the rent is being raised 3% which results in an uneven number
    i.e. 14.60
    The landlord stated that the increase would be rounded up to the next
    dollar 15.00

    OK-- .40 seems like nothing - but X 12mo = 4.80 X 200 homes = 960.00
    The way I see it this profit is from unearned income .

    Also - if the rent is raised again the next year - it would be based
    on the 15.00
    Conceivably in a few years, this could amount alot of "rounded" profit

    What the tenants fear - is that if they agree by paying this increase in
    90 days - they will lose any legal argument that it was unfair or illegal.
    Would this be considered unfair business practice or some other legal issue?

    I'll be back later and hopefully there will be some opinions on this
    Thank you so much~

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Rent Increase Percentage Rounding to Next Dollar

    How do you figure that it is unearned income? Surely you're aware that there are costs associated with maintaining property, and those costs have been skyrocketing.

    You've been provided with ample notice of the rate increase. There is nothing illegal or unfair about increasing your rent, nor is it illegal or unfair to round up to the next dollar, nor is it illegal or unfair to make a profit at one's business.

    He could just have easily said "It's going up $15". For whatever reason, he chose to express it as a percentage of your current rent. The end result is the same.

  3. #3
    Join Date
    Oct 2008
    Location
    Washington comma the Great State of.
    Posts
    1,211

    Default Re: Rent Increase Percentage Rounding to Next Dollar

    Quote Quoting dabble149
    View Post
    My question involves accounting practices in landlord-tenant law in the State of: CA

    I live in a senior mobile park and the rental increase notice states
    That the rent is being raised 3% which results in an uneven number
    i.e. 14.60
    The landlord stated that the increase would be rounded up to the next
    dollar 15.00

    OK-- .40 seems like nothing - but X 12mo = 4.80 X 200 homes = 960.00
    The way I see it this profit is from unearned income .

    Also - if the rent is raised again the next year - it would be based
    on the 15.00
    Conceivably in a few years, this could amount alot of "rounded" profit

    What the tenants fear - is that if they agree by paying this increase in
    90 days - they will lose any legal argument that it was unfair or illegal.
    Would this be considered unfair business practice or some other legal issue?

    I'll be back later and hopefully there will be some opinions on this
    Thank you so much~

    Am I correct in reading that the landlord told you both that a.) he was going to effect a raise in your rent by 3% and b.) that he would also round that up to the nearest dollar amount?

    If so, then he's given you notice that he plans on raising your rent by $15.00.

  4. #4
    Join Date
    Oct 2008
    Posts
    4

    Exclamation Re: Rent Increase Percentage and Rounding to the Next Dollar

    Ok Ok
    So he can "round up"

    Here is a new development just brought to my attention
    by several other tenants.
    On my written notice it says it will round up and gives the
    total amount 15.00

    There are hundreds of tenants here and so far I am the only
    one who got notice that it was rounded up

    On the other resident's notices [stated on this last bill]
    it just says "Rent will increase at 3% by Jan 1, 2009]
    with no $ figure at all.
    Now when they get the bill, it will not equal 3% as the notice said.
    Perhaps he is hoping they will not notice.

    I am trying to help seniors in this park - because they are still reeling from a very high increase last year. It was raised 120.00 and some seniors who have been here for over 20 years had their rent nearly doubled and some did.
    [300.00 went to 460.00] This was an outrage and when everyone complained the landlord explained: He had goofed in not raising rents on a regular basis to stay competitive to other parks. So he claimed
    he had a right to adjust rents accordingly.

    So in ONE day - seniors had to start paying this "market rate" based on the landlord's own admission of error in business mgmt.

    This was grossly unfair because all of them are on social security - so it was a huge hardship. Some could barely buy food or heat their homes

    That rent raise caused the residents to petition for rent control - and the landlord caved in and made a deal that if we accepted this rent he would never raise more than 4% in the future. He went so far as to say the following year would not be increased. Well it HAS - he didn't keep his word [which of course we realize -carries no legal weight]
    So this rent increase was greeted as a betrayal of these seniors.

    Thanks for the replies - sadly there is nothing they can do.
    Let's hope this isn't happening to your mothers and grandparents

  5. #5
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Rent Increase Percentage and Rounding to the Next Dollar

    So he claimed he had a right to adjust rents accordingly.
    He does, so long as he doesn't do it in the middle of a lease term.

    Let's hope this isn't happening to your mothers and grandparents
    You know, we don't write the laws. We can only tell you what they are. I get that you're pissed off that the law doesn't go along with what you think it should be, but it's hardly our fault.

    Some of us don't even HAVE parents and grandparents anymore, so attempting to lay a guilt trip isn't going to change the answer.

  6. #6
    Join Date
    Oct 2008
    Location
    Washington comma the Great State of.
    Posts
    1,211

    Default Re: Rent Increase Percentage and Rounding to the Next Dollar

    Quote Quoting dabble149
    View Post
    Ok Ok
    So he can "round up"
    I didn't say that. He included 2 things in your notice: 1.) that was going to increase it by 3% and 2/) he was going to make yours $15.00. The second part of that kind of makes the first part irrelevant. So, you should just read your notice as "I'm going to raise your rent by $15.00."

    Here is a new development just brought to my attention
    by several other tenants.
    On my written notice it says it will round up and gives the
    total amount 15.00
    Then you have been given due notice of his intent to raise your rent by the amount he's actually raising it.

    There are hundreds of tenants here and so far I am the only
    one who got notice that it was rounded up
    That doesn't mean he's raising their rent by the same amount he's raising yours, does it? Or that he's even going to round theirs up. Maybe he's only doing that to you.

    On the other resident's notices [stated on this last bill]
    it just says "Rent will increase at 3% by Jan 1, 2009]
    with no $ figure at all.
    Now when they get the bill, it will not equal 3% as the notice said.
    You can't yet know what the rent will actually be for them on Jan 1, 2009.

    Perhaps he is hoping they will not notice.
    Perhaps he is not raising their rent by more than 3%.

    I am trying to help seniors in this park - because they are still reeling
    from a very high increase last year.
    A very noble endeavor. We need more people like you in this world.

    It was raised 120.00 and some seniors who have been here for over 20 years had their rent doubled.
    [300.00 went to 460.00] This was an outrage and when everyone
    complained the landlord explained: He had goofed in not raising rents
    on a regular basis to stay competitive to other parks. So he claimed
    he had a right to adjust rents accordingly.
    So in ONE day - seniors had to start paying this high raise based on
    the landlord's admission of error in business mgmt.
    Or, they were for years given a break by not having to have to made higher payments then. I'd have to know what other parks were doing over those years to determine if it's a net gain or loss for the residents in your park.

    This was grossly unfair because all of them are on social security -
    so it was a huge hardship. Some could barely buy food or
    heat their homes
    The reverse is that he might have lost his park and then you could all potentially have to move.

    160.00 rent raise caused the residents to petition for rent control -
    and the landlord caved in and made a deal that if we accepted this rent he would never raise more than 4% in the future. He went so far as to say the following year would not be increased. Well it HAS - he didn't keep his word [which of course we realize -carries no legal weight]
    It actually does carry legal weight. He made a claim which you could have taken as true and acted on and which might now be legally enforceable against him to prevent him from going back on his word. Also, this is an oral contract.

    So this rent increase was greeted as a betrayal of these seniors.
    And it is. Also, it might be possible for you guys to get a lawyer and bring suit against him for being a bad, bad man who lied to you.

    Thanks for the replies
    Let's hope this isn't happening to your mothers and grandparents
    Let's hope.

  7. #7
    Join Date
    Dec 2007
    Location
    Ohio
    Posts
    2,006

    Default Re: Rent Increase Percentage and Rounding to the Next Dollar

    Quote Quoting dabble149
    View Post
    Ok Ok
    So he can "round up"

    Here is a new development just brought to my attention
    by several other tenants.
    On my written notice it says it will round up and gives the
    total amount 15.00

    There are hundreds of tenants here and so far I am the only
    one who got notice that it was rounded up

    On the other resident's notices [stated on this last bill]
    it just says "Rent will increase at 3% by Jan 1, 2009]
    with no $ figure at all.
    Now when they get the bill, it will not equal 3% as the notice said.
    Perhaps he is hoping they will not notice.

    I am trying to help seniors in this park - because they are still reeling from a very high increase last year. It was raised 120.00 and some seniors who have been here for over 20 years had their rent nearly doubled and some did.
    [300.00 went to 460.00] This was an outrage and when everyone complained the landlord explained: He had goofed in not raising rents on a regular basis to stay competitive to other parks. So he claimed
    he had a right to adjust rents accordingly.

    So in ONE day - seniors had to start paying this "market rate" based on the landlord's own admission of error in business mgmt.

    This was grossly unfair because all of them are on social security - so it was a huge hardship. Some could barely buy food or heat their homes

    That rent raise caused the residents to petition for rent control - and the landlord caved in and made a deal that if we accepted this rent he would never raise more than 4% in the future. He went so far as to say the following year would not be increased. Well it HAS - he didn't keep his word [which of course we realize -carries no legal weight]
    So this rent increase was greeted as a betrayal of these seniors.

    Thanks for the replies - sadly there is nothing they can do.
    Let's hope this isn't happening to your mothers and grandparents
    Its happening to everyone not just seniors! The landlord has been as honest as he could. He was giving them a break for quite sometime. That doesn't mean that he's ripping them off or doing anything illegal. He's given notice to the increase. You can also choose to move if you don't like the increase.

    fyi...my parents, who happen to be seniors complained about the gas prices going up. They call and complaind about it on almost a daily basis. After getting tired of hearing about it (not my fault anyway, I don't own the oil companies) I simply said look... You are about the LEAST affected group of people affected by this. Cook dinner at home and make your doctors appts on the same day to save on gas usage. The rest of us can't stay at home because we are required to go to work everyday. The moral of the story is...yeah it sucks but deal with it...its 15.00. Don't worry about what the price of gas might be next year unless your here to worry about it.

  8. #8
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Rent Increase Percentage and Rounding to the Next Dollar

    Its happening to everyone not just seniors!
    Yup. Me and my three jobs could whine up a storm about it.

  9. #9
    Join Date
    Oct 2008
    Location
    Washington comma the Great State of.
    Posts
    1,211

    Default Re: Rent Increase Percentage and Rounding to the Next Dollar

    I just want to be iterate my point.

    If it's true that he definitively said to them he would not raise their rent for the following year, and they relied on that good faith, they may have an estoppel claim for his breaching his contract.

    To the original poster, click the link I put in there and read them. If it seems to fit the facts of your situation as you understand them, you should consult an attorney.

    Many attorneys offer free consultations. Also, many attorneys work on sliding scales so to accomodate financially strapped people. Some attorneys work on a contigency (they take a percentage of any financial award won in court). There may even be a firm near you which does pro bono (translates to the for the public good, but means "free" for you) and might have in mind a case like this.

    So, if this is really important to you, you should call around and ask. The worst they can say is that you have no case and you're no worse of now than you were before calling them. You're only out a little time.

    I also want to be clear that I think it's scummy to go against one's word, but that for the increase of which he's given notice, there's not a lot you can do about that, IMHO.

  10. #10
    Join Date
    Oct 2008
    Posts
    4

    Default Re: Rent Increase Percentage and Rounding to the Next Dollar

    Reply to snakecharmer
    but it's hardly our fault.

    Goodness, who said anything about you or anyone else being at fault?
    This website is supposed to be for sharing of opinions not allogating fault to the ones who reply
    There are a few gracious and courteous replies that I will focus on
    Not yours.........

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