How Los Angeles Landlords Can Challenge HACLA Rent Comparables to Win Higher Rent
As a property owner in Los Angeles, it’s crucial to understand your rights when requesting rent increases through the Housing Authority of the City of Los Angeles (HACLA). One often-overlooked feature of HACLA’s process is the ability for landlords to challenge rent comparables, which can play a pivotal role in whether your rent increase request is approved.
According to HACLA’s Administrative Plan, Section 11.8, Landlords have the right to request a review if they disagree with the comparable rent provided by the system. This section states: “If the landlord disagrees with the comparable rent provided by the system, HACLA staff will review with the landlord the unit information currently recorded on the Unit Information Form for the assisted unit in question. If the owner disagrees with HACLA’s designation of the unit’s characteristics, features, or amenities, the inspection or rent reasonableness unit may schedule an appointment with the landlord to review the subject property and may make appropriate corrections to the third-party vendor unit information.”
In essence, comparable rents are provided by the system to determine the value when a new tenant moves in and to process rent increases. Although it’s commonly known to be used for new move-ins, it also applies to rent increases. This means that landlords can request a review if they believe the data used to determine the rent value is incorrect, or if they feel the property’s unique features were not properly captured in HACLA’s records.
Why This Matters to Property Owners
One reason rent increase requests may be denied could be due to inaccurate data HACLA may inadvertently use to assess the rent value of your unit. HACLA uses publicly available data to determine the value of your property. HACLA collects information on your property’s location, bedroom size, number of bathrooms, building type, condition, the number of units in the building, building age, square footage of the unit, appliances, amenities, and utilities.
It’s essential to be familiar with your unit’s data so you can compare it with the data HACLA has recorded. Pay careful attention to the condition and size of your unit as both play a significant role in determining its rent value. Insist on the condition of ‘Above Average’. Most property owners are familiar with the term “price per square foot,” which is a standard metric that is
dependent on the size of the property and is used in real estate to determine rent value when comparing units. If discrepancies are found in these areas, and you have more complimentary information let HACLA know, take the necessary steps to correct the data, and request another rent reasonableness determination. HACLA also has the option to come out to your property to measure your unit if there is any lingering doubt about its size or square footage.
If your property is not assessed at the Voucher Payment Standard (VPS) amount, especially under Small Area Fair Market Rents (SAFMR), you should probe deeper to know the cause. HACLA has a responsibility to be transparent with the data they collect, and they have a duty to perform. If HACLA refuses to provide access to the data or fails to follow through with this responsibility, you may want to consider legal remedies, such as filing a claim in small claims court to assert your rights.
Steps You Can Take
1. Request a Review: When you submit your rent increase request through HACLA’s online owner’s portal, you must also give the tenant 60 days advance notice before the increase can go into effect. On the 61st day, you should begin reaching out to HACLA about the status of your rent increase request. It’s important to follow up often until the process is completed. Be persistent to ensure your request is handled in a timely manner. It’s crucial to stay on top of the process to minimize the financial impact of these delays.
2. Demand Transparency: HACLA has a responsibility to be transparent in the process. Transparency is essential to ensure that decisions are made timely and accurately. If HACLA is unwilling to provide this data, you may want to explore legal remedies through small claims courts to ensure you receive the transparency and accountability you deserve.
3. Document Everything: Keep detailed records of your communications with HACLA. Create a ‘Request for Rent Increase ’ email and keep all communications on that thread. This will strengthen your case during the appeal process.
Don’t let incorrect data hinder your ability to increase your rental income. With HACLA’s Administrative Plan providing clear instructions on how to dispute inaccurate comparables,
landlords in Los Angeles can challenge the system’s determinations, protect their bottom line and ensure rent increases reflect the true market value of their property.
If you have any questions, you can schedule a 15 minute consultation!