2. New Tenancy. A landlord may increase the rent on a
Covered Unit by five percent (5%) of the base rent in
addition to any other allowable increases when a new
tenant occupies a unit, but only if the previous
Tenancy was terminated voluntarily by the previous
Tenant, without coercion or unreasonable influence from
the Landlord. This increase may be applied at most once
per twelve (12) months, regardless of the number of new
tenancies. The Housing Safety Office shall investigate
any report that the Tenancy was not terminated
voluntarily by the Tenant, or that the Tenant was
coerced or unreasonably influenced by the Landlord to
terminate the Tenancy. Any tenancy in which the
property owner served the tenant with a notice to quit
or summons and complaint for forcible entry and
detainer shall not be deemed to be a situation in which
the previous tenant voluntarily terminated the tenancy.
3. Banked Rent. If the Landlord has banked additional rent
increases, in accordance with Section 6-235 below, this
banked amount, in whole or in part, may be added to the
increases permitted by subsections (i) and (ii) above.
4. Additional Rent Board Approved Increases necessary to
ensure a fair return on investment. In addition to the
above rent adjustments, upon receipt of an application
submitted by the Landlord, the Rent Board may approve
additional rent increases necessary to ensure a fair
return on investment.
To calculate what amount is necessary to ensure a fair
return on investment, the Rent Board shall employ
generally acceptable Maintenance of Net Operating
Income methodology, and may not consider any valuation-
based or capitalization-based methodology or any
calculation or methodology factoring market rent or
market value of the Covered Unit.