Assuming you can successfully navigate that process, your Rent Control Exemption is still not perfected. To complete the process, you must give the tenant written notice of the exemption at the beginning of the lease or simultaneous with the filing of the Claim of Exemption.
It is important to understand that you are not exempt until you follow all of the steps outlined above. The consequences for raising the rent without a perfected exemption can be severe. If challenged, the tenant is entitled to have the rent rolled back to the last legal level; any rent you collected or demanded above the legal level must be returned to the tenant; you might have to pay treble damages (three times the amount you overcharged); and you are liable for the tenant’s attorney’s fees (not to mention your own). As you can see a $200 rent increase can very quickly turn into a $10,000 problem for a landlord.
If you are a landlord and have questions about rent control or an exemption, please feel free to contact me
or use my online scheduler to book an appointment
for an initial consultation.