Despite having a reputation for sprawl, rent in San Jose increased at a higher rate than anywhere else in the nation, according to a city memo distributed Tuesday.
“As of December 2011, San Jose rents have increased almost 11 percent year over year,” writes Leslye Corsiglia, San Jose’s director of housing. “Over the last six months, the City’s Rental Rights and Referrals Program (RRRP) has seen a large increase in the number of residents calling to report significant increases in their rents, some as high as 40 percent.”
Many of the people targeted by rent hikes include mobilehome owners who rent land for their homes. There are two cases in recent months that raised concerns. On Feb. 27, the owners of Colonial Mobile Manor Mobilehome Park filed a petition with the city’s RRRP to increase the rent of mobile home owners by $114, which is in the range of 11-28 percent depending on each resident’s plot of land.
According to Corsiglia’s memo, a 3 percent increase is the highest allowable under the city’s ordinance, which doesn’t apply to all apartment housing.
The attempt to increase mobile home rents appears to be a relatively new trend. Last November, the owners of Oakcrest Mobilehome Park filed a petition to raise space rents by approximately $200 a month, or an increase of 20-30 percent depending on the original monthly space rent.
“Prior to these two petitions,” Corsiglia writes, “the city had not received a request to raise rents by a mobilehome park owner in over 10 years.”
Last week, Milpitas’ City Council voted to deny a rent increase on mobile home owners.
Rents here are high in the Bay area, and you can thank all the renters who ran to buy homes under faulty loans! Landlords are once again taking advantage of the situation by raising monthly rents to match a monthly house payment. (So much for having a rent control ordinance to protect renters from rent gauges in San Jose! This ordinance was once strong until property owners destroyed it.)
Some homeowners who can’t meet their mortgages are renting out their homes to stay out of foreclosure. Their rent requests are being met by homeowners who have lost their homes.
Housing/apartment rents aren’t the only rents/leases that are outrageous. I have friends who own small businesses that are being gouged by property owners. That is a big part of why so many businesses are closing their doors.
The greed never ends here in Silicon Valley.
Hi Kathleen,
If you want more info or an explanation of certain business practices, I would suggest putting a question to Larry Stone regarding foreclosures. Thanks for reading.
JK