Congratulations, Your Rental Property Will be Painted and Appraised

Like many tenants in Oakland, I lease a rent-controlled apartment in an 8-unit building.  I received permission to maintain the garden around the building from the landlord who has benefited from the thriving plants which enhance the building aesthetics. However, I recently arrived home one day to see the garden severely cut-back; it was decimated!  In a conversation with my landlord the next day, I learned that he intended to paint the exterior of the building and that the plants were cut-back to facilitate the work.

We received a 24-hour courtesy notice from the property management company that painting would begin in 2-days.  As a result, I dug up and potted my favorite plants and moved them to the back of the building.  And we waited…

This week, we received 24-hour notice to enter the building units for a building appraisal.  A building is generally appraised either because the property owner is refinancing the mortgage or intends to sell the building. On the heels of this notice, we received notice from the painting company that they would power-wash the building on Monday and begin to paint the building the following day.  The building that I live in is old and it needs a new coat of paint. However, given both the appraisal and the capital improvement, I am waiting to see if my apartment complex will be placed on the market.

Provided that the building is sold, I may also be required to review and sign a Tenant’s Estoppel Certificate.  Having facilitated between landlords and tenants on many issues, I am seeing more references to tenant estoppel certificates in lease agreements.  I will need to check my own 30+ page lease agreement for the same.  Regardless, I can expect the cost of the painting to be passed on to me and to the other tenants in my building via a rent-increase.  In Oakland, 70% of the total cost of the capital improvement (which includes painting) can be divided among the tenants in the form of a rent increase over a 5-year period.  Enjoying a comparatively low-rent for Oakland tenants, I am anticipating a rent increase due to these improvements.

However, if the building is going to be sold, I and the tenants in my building may face similar pressures from the new building owners as detailed in the article, “When Landlords Target Tenants in Rent-Controlled Buildings.”  Because I am a tenant’s advocate, I will be carefully navigating these new waters for I, like the other tenants, find rents unaffordable in Oakland and would be required to move further north or south to enjoy the same type of residence that I enjoy today.