Property ManagementIntermediateCalifornia Exam

A property manager wants to raise rents for existing tenants in a unit subject to local rent control. What must the manager do first?

AProvide 30 days' written notice for any rent increase, as typically required in a residential lease
BCheck the local rent control ordinance for allowable increase limits and proceduresCorrect
CObtain approval from the California DRE, consistent with California landlord-tenant law
DFile a petition with the California Housing Agency, per standard property management industry practice

Why Check the local rent control ordinance for allowable increase limits and procedures Is Correct

Answer B: Check the local rent control ordinance for allowable increase limits and procedures

Rent-controlled units are governed by local ordinances, which vary by city. The property manager must review the applicable local rent control ordinance to determine allowable increase percentages, required notice periods, and any petition or exemption procedures before raising rents.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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