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If a landlord has
already served a Notice of Rent Increase (Form 10) for an increase in 2009, and
if the original increase on the notice was greater than 5%, then the amount will
be deemed to be 5%. There is no need to file a new Form 10 to get the allowable
increase of 5%. However, landlords who originally asked for more than 5% must
notify their tenants in writing of what the 2009 rent for the unit will be,
based on the 5% maximum allowable.
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For example, if the 2008
rent was $500.00, and the landlord served a Form 10 on or before October 1, 2008 giving
notice of a 9% increase effective January 1, 2009, then the Form 10 would have
advised the tenant that the rent on January 1, 2009 would be $545.00. The
maximum allowable rent pursuant to IRAC’s Order
LR08-18 of December 11, 2008 would be 5% and
the rent would $525.00. The landlord does not have to serve a new Form 10,
but the landlord in this example must advise the tenant in writing that the
rent will increase to $525.00 effective January 1, 2009. |
