The Santa Monica Rent Control Board has adopted a formula that will permit apartment owners to raise rents from 2.5% to 7% each year.
The annual increase will be tied to the consumer price index. It will have a 7% cap and cannot be lower than 2.5%. The previous formula required an analysis of property taxes, gas, water, trash collection and the landlord's net operating income.
Board administrator Howell Tumlin said the new formula is "extremely simple." He added that apartment owners will still be allowed to petition the board for individual increases in cases where they feel the rent is insufficient. The plan takes effect in September.