Can landlords raise the rent when roommates move out in Oakland?

"Under a state law called the Costa-Hawkins Rental Housing Act, landlords can reset the starting rent price at any level once tenants move out of a unit and new residents move in. That's where things got tricky in Woo's situation. According to a lawsuit Woo filed in January, their building's property manager had Woo's partner sign the lease in March 2024. Woo, even though they were the one who'd found the apartment and would be moving in together with their then-partner, was told to sign a separate document instead."

"That document, according to Woo, was called the 'Addendum For Purpose of Future Costa-Hawkins Rent Increase.' It allegedly stated Woo was not an 'original tenant' of the unit and said that the landlord, Jeffrey Jue, could raise Woo's rent beyond what Oakland law allows if their partner, the one who signed the lease, moved out."

"Most apartment buildings in Oakland, like Woo's, are covered by the city's rent control law. That law states that landlords can only raise the rent by a certain percentage each year. A few years ago, Oakland capped this percentage at 3%. But under a state law called the Costa-Hawkins Rental Housing Act, landlords can reset the starting rent price at any level once tenants move out of a unit and new residents move in."

Lily Woo rented a two-bedroom apartment in Oakland for $2,350 monthly in spring 2024. When their partner moved out the following year and Woo remained with a new roommate, the landlord imposed a 27% rent increase, citing the Costa-Hawkins Rental Housing Act. The property manager had strategically assigned the original lease to Woo's partner while having Woo sign a separate document designating them as a non-original tenant. This allowed the landlord to claim the unit had new occupants and reset the rent beyond Oakland's 3% annual cap. Woo filed suit arguing the landlord violated Oakland's rental housing laws. The case highlights how Costa-Hawkins can be exploited to circumvent local rent control protections depending on implementation and understanding.

Read at The Oaklandside