Richmond landlords must navigate compliance for rent increase in controlled units

Landlords in Richmond, CA, are gearing up for the annual rent increase process, with key guidelines laid out during a recent government meeting. The Richmond Rent Program is set to implement an annual general adjustment (AGA) of 1.62%, effective September 1, 2025, providing landlords with a structured way to increase rents while adhering to local regulations.

At the heart of the discussion was the necessity for landlords to ensure compliance with the Richmond rent ordinance before applying any rent increases. This includes confirming whether a unit is rent-controlled, as the ordinance covers most residential rental units in the city, with notable exemptions such as government-subsidized housing and new constructions built after 1995. Landlords must also be enrolled in the rent program, pay all associated fees, register tenancies, and possess a valid business license.

The AGA allows landlords to adjust rents based on a percentage of the tenant's current rent, with the percentage capped at either 3% or 60% of the consumer price index, whichever is lower. This year’s adjustment reflects a careful balance between tenant protections and landlords' rights to cover rising costs.

Landlords were reminded that they can "bank" any untaken rent increases for future use, but they must adhere to specific rules regarding how much can be applied in a given year. For instance, they can only apply the current year's AGA and up to 5% of the available bank in one year, spreading out larger increases over time if necessary.

As Richmond prepares for these adjustments, landlords are encouraged to utilize the rent program's online calculator to ensure accurate calculations of rent increases, which must be communicated to tenants through proper notice. This structured approach aims to maintain fairness in the rental market while providing landlords with the necessary tools to navigate the complexities of rent control.