Legal rent

The "base rent" for most rental units is the lawful rent collected on May 31, 1980. The "base rent" for three and four unit buildings where one unit was the principal residence of a 50% owner of record on December 3l, 1979, however, is the lawful rent collected on December 31, 1981. The base rent may be adjusted by Annual General Adjustments (AGA's) granted by the Board and by Individual Rent Adjustments (IRA's) granted pursuant to a petition filed by either the landlord or the tenant. Thus, the current lawful rent for a rental unit is calculated by increasing the unit's base rent by the AGA's for which the landlord is eligible and including any permanent or temporary adjustments which have been granted in an IRA petition.

Setting the base rent for a unit which was not rented on May 31, 1980

The base rent for units which were not rented on May 31, 1980, or during the preceding six months, is set by making a good faith estimate of the median rent in effect for comparable units in the City of Berkeley on May 31, 1980 and adding the AGA's granted during the time the unit was not rented and the 1991 Inflation Adjustment Increase.

The Rent Board has 1980 median rent data available to assist property owners in making this estimate. In addition to the census tract medians, property owners may locate comparable rental units in the City and review the Board's property files to obtain the May 31, 1980 rent for these units. Owners may use the base rents for these units to make an estimate of the median base rent for comparable units. An owner who bases his/her estimate on the rents of specific comparable rental units should include enough units in the sample so that it is representative of the comparable units in the applicable census tract and should be mindful not to select units because of their rents.

1995 City-wide Median Rent

February 1, 1995

These calculations include the 1995 Annual General Adjustment and the full Searle Inflation Adjustment and revise the calculations contained in the May 10, 1993 memorandum from the Executive Director. 



                              APARTMENTS

 # OF BEDROOMS   # OF UNITS      MEDIAN RENT     PROJECTED
                 IN DATABASE     05/31/80        1995 RENT

      STUDIO          1538       $172.00         $  440.27
   1 BEDROOM          6853       $217.00         $  522.15
   2 BEDROOM          4615       $290.00         $  655.34
   3 BEDROOM           688       $400.00         $  861.49
   4 BEDROOM           118       $583.89         $1,206.13
   5 BEDROOM            39       $650.00         $1,330.02
   6 BEDROOM            10       $950.00         $1,892.26


                                HOUSES

 # OF BEDROOMS   # OF UNITS      MEDIAN RENT     PROJECTED
                 IN DATABASE     05/31/80        1995 RENT


   1 BEDROOM            73       $  225.00       $  536.71
   2 BEDROOM           409       $  372.00       $  809.02
   3 BEDROOM           267       $  550.00       $1,143.00
   4 BEDROOM            88       $  655.00       $1,339.40
   5 BEDROOM            23       $  837.00       $1,680.49
   6 BEDROOM            11       $1,050.00       $2,079.67

These figures are subject to change as the Board's database continues to be updated and previously omitted units are added.

Certification of rents

In compliance with California Civil Code §1947.8, the Rent Board certified the lawful base rent and annual lawful rent ceilings for the majority of registered rental units in Berkeley in 1987. Rents were certified based on information in the Initial Registration Statements filed by the landlord and AGA eligibility. A rent which has been certified may not be changed absent a showing that an illegal rent was certified due to intentional misrepresentation or fraud.

Rents which have been determined in an IRA petition which is final and not subject to appeal are also considered certified and not subject to change unless the decision was the result of intentional misrepresentation or fraud.

An owner or tenant of a unit for which the rents were not certified in 1987 or who wishes to have the subsequent rent ceilings (1988-present) certified, may file a Request for Certificate of Permissible Rent Levels. There is no fee for a Certificate if the rents have never been certified and a nominal fee if the rents had been previously certified.

Annual General Adjustment (AGA)

Once each year, the Board grants an AGA by which all eligible landlords may increase the lawful rent ceiling of their rental units to cover increased maintenance costs and to compensate for inflation. The Board conducts at least two public hearings at which it takes testimony, comments and any other relevant information concerning the proposed AGA. The Ordinance requires that the AGA for the upcoming calendar year be set no later than October 31st of the current year.

Before a landlord may impose an AGA, he/she must be in full compliance with the Ordinance and all orders and decisions of the Rent Board. This means:

Annual General Adjustments approved by the Berkeley Rent Stabilization Board 

1981: 5% OR 6.2% if owner paid for space heating

1982: 9% plus, if the owner paid for gas and electricity, including space heating, the
           following additional increases were authorized:

       $4: studio          $10:  3-bedroom
       $7: 1-bedroom       $12:  4-bedroom
       $9: 2-bedroom       $16:  house with 3+ bedrooms

       Rental property owners who deferred the 1982 rent increase are entitled to a banking
       bonus of an additional 1% for each year of deferral.

1983: 4.75% OR 5% if owner paid for electricity or gas

1984: 0%

1985: 2%

1986: 3% plus $2.50 per month

1987: 3.5%

1988: $25.00 per month OR $15.00 per month for residential hotels

1989: 3% OR 3.5% if owner paid for gas, electricity, or heating within the unit

1990: $16.00 per month

1991: 4% or $17.00 per month, whichever is higher

1991: 1991 Inflation Adjustment Order 45% of the 5/31/80 rent

1992: $26.00 per month

1993: $20.00 per month

1994: $18.00 per month

1995: 1.5 %

Rounding to the nearest dollar amount was allowed for 1981 - 1987, and for 1989 and 1990. Rounding was required for 1988. Beginning with the 1991 AGA, rounding has not been allowed. The yearly increases must be taken sequentially. For example, the 1988 increase may not be taken before the 1987 increase.

INDIVIDUAL RENT ADJUSTMENT (IRA)

Both tenants and rental property owners can apply for individual adjustments of rent ceilings. The grounds upon which a tenant IRA petition may be granted are:

In lieu of filing an IRA petition, a tenant may file an action in Small Claims Court to recover rent overcharges.

The grounds upon which a landlord IRA petition may be granted are:

After a petition is filed, a hearing is scheduled. At the hearing, which is conducted by a Hearing Examiner, both the tenant and the landlord may present evidence -- written documents, photos, testimony from witnesses -- supporting or opposing the petition. The parties may represent themselves or have someone else represent them at the hearing. Following the hearing, the Hearing Examiner will issue a written decision granting or denying the requested rent adjustment. Either party may appeal the decision within thirty days of the date it is mailed.

However, if the tenant and owner agree on a rent increase/decrease prior to the hearing and submit a signed Agreement of Parties, whereby they waive their right to a hearing and to an appeal, a decision will be issued without a hearing.

This page was last updated 5/21/1995.