San Jose hears both sides of implementing rent control

SAN JOSE, Calif. (KGO) -- The San Jose City Council is moving forward with action on one of its highest priority issues -- skyrocketing rental prices. But leaders still have questions about the best way to do it.

Technology isn't the only thing booming in Silicon Valley, housing is just as hot. There are 3,700 units popping up around Cottle Road in South San Jose.

"We were definitely surprised by the prices. We moved in December and they let us know when our lease is up, it's going to go up a few hundred dollars if we decide to stay there," said San Jose renter Christina Emery.

Rental prices have jumped significantly over the past five years. The city of San Jose says the average rent in 2010 was $1,451 a month. This year in 2015, it's $2,227 a month -- a 54-percent increase. This comes as the median income has only increased by 11 percent.

The city does have a rent control policy but only for properties with three or more units built before 1979. That's about 35 percent of the 122,000 renter occupied dwellings in San Jose. Landlords of these units are limited to an 8 percent increase in rent a year -- unless they get an exemption from the city. They also have to give at least 60 days notice if they're doing a no cause eviction and aren't allowed to raise the rent to market levels for the next renter.

Many community members believe that 8 percent is just too much, considering that the cost of living has gone up roughly 3 percent each year, since the mid-1980s.

Some say rent control will hurt responsible landlords, but others believe that change is necessary and that it is the responsible thing to do.

City council members listened to feedback from the public and a number of residents who expressed their support for changes to the city's rent control law. City council members are also looking at other protections for renters, including making it more difficult for landlords to evict their tenants.

Landlords are concerned that if you lower the allowable rent increase, it would make it tougher for them to pay for the expenses of their rental properties, like maintenance and operations costs, which could then lead to run-down properties.

However, some people are already making tough decisions about where to live.

"If you're making $3,000 a month in gross pay how can you afford $2,000 a month in rent. It's impossible," said San Jose resident Michael Totten.

There will be additional public hearings in the next two months. This is not a done deal by any means. But the goal is to have a plan in place that the city council can vote on some time in December.