1013. Vacancy Rent Adjustment
(A) New Maximum Allowable Rent
(1) Pursuant to Section 1954.50, et seq. of the Civil Code, the landlord may
establish the lawful maximum allowable rent for any controlled rental unit consistent
with this regulation. The new rent level shall thereafter become the maximum lawful
rent ceiling for the unit for all purposes including, but not limited to, the computation of
all future rent adjustments. The unit shall otherwise remain controlled by all other
regulations of the Rent Board.
(2) In this Regulation the terms “new rent level,” “new rent ceiling” and “initial
rental rate” refer to the rent established by the landlord for a tenant whose tenancy
becomes effective after January 1, 1996. For tenancies commencing on or after
January 1, 1999, the “initial rent” for a rental unit shall be the monthly market rent
established by the parties at the commencement of the most recent tenancy. Where
the rental agreement includes periods for which the tenant pays reduced, discounted or
“free” rent, the “monthly market rent is calculated as the average of the monthly
payments made during the initial term of the agreement or, in the case of a month-to-
month tenancy, during the first twelve months of the tenancy.
(3) Required provisions in rental agreements that contain periods for which the
tenant pays reduced, discounted or “free” rent.