Just & Reasonable Rent Adjustment Program

The Just & Reasonable Program is a mechanism to obtain a fair return on the landlord’s investment in rental property. It compares the Net Income from the first year for which records are available with the Net Income in the Current Year. If the business is currently unprofitable compared with its first year of operation, a permanent rent increase adjusted for inflation may be permitted to be added to the rent to improve the property’s profitability and permit a fair return on the owner’s investment. This is also the program to use if, after only one year of ownership, the property is operating at a loss.

RAC 240.00 - Just and Reasonable Rent Adjustment Commission Guidelines. These guidelines provide information on the program and the procedures followed by the department in a processing a Just and Reasonable Rent Increase application.

There are two ways to submit an application::

  1. Use the Just and Reasonable Rent Increase online application which applies the relevant formula and completes the calculations. Any supporting documentation uploaded to the online application must also be mailed and received by the Department within 30 days of filling the application. For your convenience, a mailing label will be provided at the completion of the application. 
  2. Submit the paper application from the packet with supporting documentation by mail to: P.O. Box 57398, Los Angeles, CA 90057-0398 or drop it off at one of our public counters. For your convenience the paper application packet contains strategies on how to use the Guidelines to your best advantage.