Landlord Individual Rent Adjustment Petitions

A landlord can file an IRA petition to request an increase to the maximum amount of rent that can be charged for a unit that is fully covered by Berkeley’s Rent Ordinance. A  housing counselor can help you learn about the benefits and limitations of the petitions discussed below. Please note that housing counselors cannot provide legal advice or give you an opinion on the merits of your case. 

For information on the hearing process and the Rent Board’s petition filing rules, please visit our The Petition and Hearings Process page. See our Rent Board Petitions page for more information on all petition types. To access petition forms, see our Petition Forms page.

COMMON LANDLORD IRA PETITIONS

Landlords most commonly seek rent increases for the following reasons:

• Increased occupancy
• Capital improvements
• Change in space or services

LANDLORD IRA PETITION TO ADD UTILITY CHARGES TO RENT CEILING

Rule for charging tenants in fully covered units for utilities

For tenancies that started on or after February 6, 2024, a landlord may charge a tenant in a fully covered unit for utilities only if either: the cost of the utilities is part of the base rent, or the utility service is separately-metered and the lease requires the tenant to place the utility in the tenant’s name.

How to Add Utility Costs to the Rent Ceiling if They’re Not Already Included

A landlord who is charging a tenant for utilities separately from rent on or after February 6, 2024, may file a Landlord IRA Petition and Schedule D (Change in Space or Services) with the Rent Board requesting to add the average cost of utilities to the rent ceiling. (Rent Board Regulation 1269(A)3.)

Important Petition Standards

• The petition must include proof of actual costs for the utility or utilities in question over at least the past year or a reasonable estimate of such costs with supporting evidence.
• The proposed rent increase must be the average of these costs (and not, for example, an estimate of the average utility costs over the life of the tenancy).

Parties Are Encouraged to Work Cooperatively

Landlords and tenants are encouraged to agree on the proposed rent increase and complete a hearing waiver to be submitted with the petition. A waiver permits the hearing examiner to make a decision without a hearing if the parties’ agreement and the proof submitted with the petition meet the standards outlined above. A hearing waiver form is included in the Landlord IRA Petition package. 

Landlord IRA Petition for Rent Ceiling Increase to the Maximum Level Allowed by the Government Subsidizing Agency

The rent for fully covered units with certain government subsidies is affected by both the Rent Ordinance, and the government subsidizing agency’s “rent reasonableness” analysis. Under the Rent Ordinance, fully covered units have a rent ceiling, which is the maximum amount of rent the owner can collect for the unit. The rent ceiling can only be increased by the Rent Board’s Annual General Adjustment (AGA), which can be lower than the increase a government subsidizing agency may otherwise be able to allow through a rent reasonableness analysis. To close this gap, landlords can file a petition to request a rent ceiling increase for certain government subsidized units up to the maximum rent allowed by the government subsidizing agency, rather than the maximum allowed by the AGA (Regulation 1283).

Qualifying Government Subsidy Types

Rental units with the following government subsidy types can use this petition process:

•  Section 8 Voucher Program, including Housing Choice Vouchers, Project-based Vouchers, and the Veterans Affairs Supportive Program
• Shelter Plus Care Program

Requirements for Granting Petition 

The Rent Board must find that:

• The subsidizing agency has issued a reasonableness determination approving the rent increase (see conditional approval process below if agency has not issued determination).
• The increase will not affect the tenant’s portion of rent 
• The landlord is in full compliance with the Rent Board’s registration requirements, meaning there cannot be any outstanding registration fees or penalties, and all required forms have been filed (for all the landlord’s rental properties in Berkeley)
• The unit meets local, state, and federal habitability standards (which may exceed the subsidizing agency’s program participation habitability standards)
• The tenant is not suing the landlord or there has not been a judgment for claims of harassment under Berkeley’s Tenant Protection Ordinance

Conditional Approval of Petition in Cases Where the Government Subsidizing Agency Hasn’t Yet Issued a Rent Reasonableness Determination

If the government subsidizing agency has not yet issued a determination that the contract rent increase you are applying for is reasonable, you may still file this petition and request a conditional approval of the rent ceiling increase. The rent ceiling increase would go into effect if the government subsidizing agency authorizes the new rent in its rent reasonableness determination.

Petition Process

We suggest that you request a rent increase with the government subsidizing agency and file the Rent Board petition at the same time. If the Rent Board considers your petition before the government subsidizing agency has completed their rent reasonableness analysis, the Rent Board can issue a conditional approval. This will allow the government subsidizing agency to implement your rent increase more efficiently if the agency determines it’s reasonable.

If you obtain a rent reasonableness determination before you file the Rent Board petition, include a copy with your petition. The Rent Board will let you and the government subsidizing agency know if the petition is granted so that the government subsidizing agency can implement the rent increase.  

The rent increase approved by the government subsidizing agency in a rent reasonableness determination cannot be implemented until the Rent Board petition has been approved and you have provided the tenant household a written notice of rent increase as required by state law.

Contact a Housing Counselor for Help

A housing counselor can help you navigate the petition process (but cannot provide legal advice or provide an opinion on the outcome of your case). You can also refer your tenant(s) to a housing counselor if they need help understanding this process. 

LESS COMMON LANDLORD IRA PETITIONS

The following landlord IRA petitions are available but not commonly used: Historically Low Rent, Increased Debt Service, Low Rent in Years 1976-1979, Maintenance or Adjustment of Base Year Net Operating Income, and Restoration of Annual General Adjustments. Please speak with a housing counselor if you have questions about whether one of these petitions fits your situation.