Beverly Hills Municipal Code Art. 3 Rent Levels

It shall be unlawful for a landlord to charge, demand, extract, accept, receive, or retain any rent in excess of the maximum amount which may be validly charged as computed in accordance with the provisions of this article and article 4 of this chapter. (1962 Code § 11-3.01)

A landlord may charge for an apartment unit a "base rent" equal to that validly charged on May 31, 1978, or on any later date when the tenancy by a tenant begins of an apartment unit which has been voluntarily vacated. Such base rent may be recomputed annually after a full year has elapsed from May 31, 1978, the date of the commencement of the tenancy, or the date of the last recomputation, whichever is later, so as to increase it in accordance with the provisions of this chapter. (1962 Code § 11-3.02; amd. 1988 Code)

A. For annual increases effective on any date between May 31, 1979, and May 30, 1980, inclusive, no such increase shall exceed an amount computed in accordance with the latest published figure reflecting the increase for a twelve (12) month period in the Urban All Items Consumer Price Index (CPI) for Los Angeles (or any successor equivalent), as published by the United States Department of Labor, Bureau of Labor Statistics. The proper method for computing such an increase in the CPI shall be as follows: The latest published CPI figure shall be added along with such figures for the preceding eleven (11) individual months, and, from the sum reached, there shall be deducted the sum of such figures for the twelve (12) months further preceding the last such twelve (12) months. That remainder shall then be divided by the lower of the two (2) sums heretofore mentioned, and the resulting figure shall indicate the permissible maximum percentage by which the base rent may be increased by virtue of the rise in the CPI.

B. For annual increases effective on any date between May 31, 1980, and December 14, 1981, inclusive, no such increase shall exceed a maximum of eight percent (8%).

C. For annual increases effective on or after December 15, 1981, no such increase shall exceed eight percent (8%) or the CPI as of the date of the notice of increase, computed pursuant to subsection A of this section, whichever is less.

D. Any security deposit lawfully imposed by the landlord on a tenant may be increased by the same percentage as the base rent may be increased, in accordance with the provisions of this section, at such time as the base rent is recomputed.

E. A landlord who is not in substantial compliance with any of the provisions of section 4-5-801 of this chapter shall not demand, accept or retain the annual rent increase otherwise permitted by this section. (1962 Code § 11-3.03; amd. 1988 Code; Ord. 17-O-2745, eff. 1-19-2018)

A. At the time of the recomputation of the base rent, the landlord may further add to the apartment unit rent a surcharge for capital expenditures for which the landlord incurred expense after the date of the last preceding rent increase in accordance with the following criteria:

1. If the capital expenditures benefited the entire building, they shall be prorated among all the tenants' rents on a square footage basis of the apartment units but annualized in accordance with the straight line depreciation schedules allowed under the Federal Income Tax laws.

2. If the capital expenditures inure solely to the benefit of one or more of the apartment units but to less than all, the surcharge shall be so annualized but shall be applied and/or prorated only with respect to the one or more units actually so benefited.

3. No capital expenditure surcharge shall be allowed which exceeds four percent (4%) of the amount of the base rent level which validly existed prior to the latest allowable recomputation of the rent. For the purposes of such computation, the base rent level for any time period shall not include any capital expenditure surcharge but may include amounts expended for major remodeling permitted pursuant to this chapter.

4. Except where capital expenditures are required by law, any capital expenditure to the interior of any apartment unit shall only be performed with the written consent of the tenant, or the landlord shall not be entitled to add a surcharge for such expenditure. The tenant shall not unreasonably withhold such consent.

5. Upon a request by a tenant, the landlord shall provide such tenant with copies of documents utilized by the landlord in determining the amount of the capital expenditure surcharge to be paid by such tenant, and such surcharge shall be abated until such time as the landlord deposits in the mail such documentation addressed to the tenant with adequate postage.

B. No landlord shall be entitled to any rental increase based upon any capital expenditure, the computation or representation of which has been arrived at collusively between the landlord and a contractor or other person.

C. For the purposes of this section, "capital expenditure" shall mean a permanent improvement or renovation, being an allowable capital expenditure for internal revenue service purposes, and other than ordinary repairs or maintenance, the use of which will continue for at least five (5) years after the date of the completion of such capital expenditure. Painting or texturing the exterior of a building shall also be a capital expenditure for the purposes of this section. (1962 Code § 11-3.04)

In addition to any capital expenditure surcharge permitted by section 4-5-304 of this article, the landlord may pass through to the tenant of an apartment unit the cost of any improvement mandated by any government statute, rule, or regulation enacted after March 24, 1981, including interest or the value of capital up to eighteen percent (18%) per annum, allocated among all the dwelling units of the building in proportion to their size, determined in square feet, and annualized in accordance with the straight line depreciation schedules allowed under the federal income tax laws. (1962 Code § 11-3.05; amd. 1988 Code)

A. When the base rent of an apartment unit includes one or more of the basic and essential utility services (for example, electricity, gas, or water, but not including such services as telephone or television cable service), at the time of the recomputation of the base rent the landlord may further add to such apartment unit rent a surcharge for the increased cost of any such utility service provided in accordance with the following criteria:

1. For recomputations done after March 1, 1980, but before February 28, 1981, such surcharge shall be computed by comparing the cost of each such utility incurred in the year March 1, 1979, to February 29, 1980, with the cost of such utility in the year March 1, 1980, to February 28, 1981. Any amount of the latter which is more than eight percent (8%) above the former may be passed through to the tenant, prorated among all the units whose base rent includes such utility service on a square footage basis, and payable one-twelfth (1/12) per month.

2. For recomputations done after February 28, 1981, such surcharge shall be computed by comparing the utility costs for the year beginning March 1, and ending on the last day of February just ended, with those costs for the year preceding that year. If the utility costs have increased by a percentage which is greater than the annual rent increase percentage which was last allowed by section 4-5-303 of this article, any amount of such utility costs which is in excess of that amount which would have been arrived at had the utility costs increased only by the same percentage as the annual rental increase may be passed through to the tenants in accordance with the provisions of subsection A1 of this section.

B. Any notice of surcharge imposed pursuant to this section shall include an explanation of how such surcharge was calculated, including the base utility cost, the increased cost, and the proration calculation. Upon a request of the tenant, the actual utility billing shall be shown to the tenant, and the increase shall be abated pending such showing. (1962 Code § 11-3.06; amd. 1988 Code)

If an apartment rental agreement specifies the maximum number of occupants in an apartment unit but does not contain any provision stating a specific dollar amount for an additional tenant occupying such apartment unit after the inception of the agreement, the landlord may exercise his or her rights under state laws or may raise the rent on such apartment unit a maximum of ten percent (10%) of the base rent for each additional tenant. If such additional tenant subsequently vacates the apartment unit, the rent shall be reduced by the amount that was imposed pursuant to the provisions of this section. This section shall apply only when there is a partial change in the occupancy of an apartment unit and one or more of the occupants of the apartment unit, pursuant to the rental agreement, still remains in lawful possession of the apartment unit. (1962 Code § 11-3.07; amd. Ord. 04-O-2449, eff. 6-18-2004)

A. In addition to the rent otherwise permitted by this chapter, the landlord may pass through to the tenant of an apartment unit ninety percent (90%) of the cost of any water service penalties and/or surcharges imposed by the city pursuant to the water rate schedule established by resolution of the city council provided that the landlord installs water conservation plumbing fixtures in such unit in accordance with the requirements of title 9, chapter 4, article 1 of this code or voluntarily installs, at the landlord's expense, low flow toilets or such other water saving toilets approved by the director of public works, showerhead restrictors and faucet aerators in such unit. If the landlord does not install such water conservation plumbing fixtures, the landlord shall be liable for and pay without any pass through to the tenant all penalties and/or surcharges imposed by the city on the landlord's apartment units.

B. In order to qualify for the pass through authorized by subsection A of this section, the landlord shall:

1. Notify all tenants, in a form required by the rent stabilization office, by registered or certified mail, of the provisions of this section and any other information required to be given by the rent stabilization office; and

2. Provide all affected tenants with copies of the water bill for the applicable billing period and the basis for the calculation of the pass through. (Ord. 91-O-2118, eff. 5-24-1991)

A. In addition to the rent otherwise permitted by this chapter, the landlord may pass through to the tenant of an apartment unit the cost of any refuse fee imposed by the city pursuant to a resolution or ordinance of the city council.

B. In order to qualify for the pass through authorized by subsection A of this section, the landlord shall:

1. Provide written notice, by registered or certified mail, to all tenants thirty (30) days in advance of the imposition of the pass through, of the provisions of this section, that the pass through is not part of the base rent, that the refuse fee may be increased by the city, and any other information required to be given by the rent stabilization office.

2. Provide all tenants with a copy of the landlord's utility bill which sets forth the appropriate refuse fee and the basis for the calculation of the pass through. (Ord. 91-O-2135, eff. 1-9-1992)

A. If an apartment unit has been subject to a written apartment rental agreement for a time period longer than one year, and such agreement expires, and the annual rent increases during the period of the agreement have not at least equaled the total annual increases which would have been allowed pursuant to section 4-5-303 of this article, then, upon the expiration of such agreement, the landlord, at his or her option, may adjust the base rent of the apartment unit upward to a level not exceeding that which could have been imposed during the period of the agreement but for the existence of the agreement; provided, however, such period shall not be greater than three (3) years. Notice of the landlord's election to exercise such option shall be given to the tenant not less than thirty (30) days prior to the expiration of such agreement.

B. If an apartment unit has been subject to a written apartment rental agreement for a time period longer than one year, and the landlord has made capital expenditures during the term of the agreement, then, upon the expiration of such agreement, the landlord, at his or her option, may add to the rent for such apartment unit a capital expenditure surcharge in an amount which could have been imposed pursuant to the provisions of section 4-5-304 of this article but for the existence of such agreement for capital expenditures incurred by the landlord during the period of the agreement; provided, however, such period shall not be greater than three (3) years. Notice of the landlord's election to exercise such option shall be given to the tenant not less than thirty (30) days prior to the expiration of such agreement.

C. If an apartment unit has been subject to a written apartment rental agreement for a time period longer than one year, and the rent of such apartment unit included one or more of the basic and essential utility services, as defined in section 4-5-306 of this article, then, upon the expiration of such agreement, the landlord, at his option, may add to the rent for such apartment unit a surcharge for utility expense calculated pursuant to the provisions of said section 4-5-306 of this article by comparing the utility billings available for the year immediately prior to the expiration of such agreement, such year to end with the month which contains the latest utility billings available at the time of the computation, with the next year immediately preceding such year. If the utility costs have increased by a percentage which is greater than the percentage of increase provided in the lease for the year just ended compared to the year immediately preceding, any amount of such utility costs which is in excess of that amount which would have been arrived at had the utility costs increased only by the same percentage as the annual rental increase may be passed through to the tenant, prorated among all the units whose base rent includes such utility service on a square footage basis, and payable one-twelfth (1/12) per month. Notice of the landlord's election to exercise such option shall be given to the tenant not less than thirty (30) days prior to the expiration of such agreement. (1962 Code § 11-3.09; amd. Ord. 91-O-2118, eff. 5-24-1991; Ord. 91-O-2135, eff. 1-9-1992)

A. A landlord shall not be authorized to place into effect any apartment unit rent increase unless the landlord has given to the tenant(s) involved advance written notice of the proposed rent increase in accordance with the requirements of state law. The notice shall state the basis justifying the rent increase and shall advise the tenant that records and documentation verifying the increase will be made available for inspection by the tenant or the tenant's representative upon request.

B. Any rent increase notice which specifies a future rent level higher than that permitted by the provisions of this chapter shall not be deemed void by reason of that fact alone, but shall be effective as a notice of rent increase to the permissible level, and the tenant may refuse to pay that portion of the increase which is in excess of the permissible level.

C. No rent increase otherwise allowable under the provisions of this chapter shall be imposed unless the landlord has conspicuously posted and maintained in the lobby, hallway, or other similarly public location in the apartment building the name, address, and telephone number of either the owner of the building, or the owner's authorized agent, and has provided each tenant with a written statement of such information so that tenants can communicate readily with such owner or agent. (1962 Code § 11-3.09; amd. Ord. 91-O-2118, eff. 5-24-1991; Ord. 91-O-2135, eff. 1-9-1992; Ord. 04-O-2449, eff. 6-18-2004)

A. Whenever an apartment unit is voluntarily vacated by all the tenants occupying such apartment unit, the provisions of this chapter shall be of no force or effect with respect to the rerental of the apartment unit; provided, however, such unit shall again become subject to the provisions of this chapter upon rerental unless such unit is exempted by section 4-5-102 of this chapter. So long as such unit continues to be rented to one or more of those persons who rented such unit when it was subject to the provisions of this chapter or any prior law of the city relating to rent stabilization, such rent shall not exceed that allowable under the provisions of this chapter, nor shall the level of housing services be reduced.

B. Notwithstanding any provision of subsection A of this section to the contrary, if an apartment unit has been vacated following a notice of eviction for the purpose of demolishing or moving the apartment building, converting the apartment unit to condominium use, or remodeling the apartment unit, and the apartment unit is subsequently rerented, such apartment unit shall be subject to the provisions of this chapter until such time as such subsequent tenant has occupied the apartment unit for at least one year. If such subsequent tenant voluntarily vacates the apartment unit after the one year period, the provisions of subsection A of this section shall apply. (1962 Code § 11-3.10; amd. Ord. 91-O-2118, eff. 5-24-1991; Ord. 91-O-2135, eff. 1-9-1992)

If a building manager ceases to perform services as a building manager and, with the agreement of the landlord, remains in the apartment unit he or she occupied while a building manager, the landlord, at his or her option, may adjust the base rent of the apartment unit upward to a level not exceeding that which could have been imposed during the period when such tenant was acting as building manager but for the fact of such tenant's status as building manager. The landlord may also impose any capital expenditure surcharge and utility expense surcharge in amounts equal to those which have been validly imposed upon an apartment building which were not imposed on such tenant because of such tenant's status as building manager. (1962 Code § 11-3.11; amd. Ord. 91-O-2118, eff. 5-24-1991; Ord. 91-O-2135, eff. 1-9-1992)

Any base rent and any rental increase permitted by any provision of this chapter may be rounded off by increasing the amount to the nearest whole dollar if it is fifty cents ($0.50) or more or by decreasing the amount to the nearest whole dollar if it is forty nine cents ($0.49) or less. (1962 Code § 11-3.12; amd. Ord. 91-O-2118, eff. 5-24-1991; Ord. 91-O-2135, eff. 1-9-1992)