[Tidybuoy]

I have a 2 Unit Duplex, and one tenant is asking me to install solar. I do not plan on doing this, but I want to understand the law.

It is my understanding that the new law in California allows me to raise the rent no more than 10%. Or, 5% + cpi for my area, whichever is lower.

If I were to install Solar, the monthly cost to me would be about $350 and I would need to increase the rent by this month. The tradeoff would be that the tenant would have reduced electric bill. The rent is currently $1500 so the most I could raise the rent would be $150 - correct?

The tenant had a solar company contact me and they sent me their ridiculous proposal. 1) they do not tell me the cost of the system, only the monthly payment (first deal breaker for me). 2) their proposal is $328/mth for 30 years. I haven't done a time value on this yet, but it sounds like it is very expensive. 3) they have a 3.5% annual escalator clause which I am assuming is the annual payment increase. 4) it states that I waive the tax credit. You've got to be kidding me?? 5) my tenant proposed this to me as a completely free deal. This is why she is a tenant, and I am a landlord - NO DEAL.

Anyway, I'm really just wondering about the rules for raising rents. BTW, I have not raised the rent on this tenant ever and she's been here for 5 years. I value a steady tenant vs. gouging the renter and all my costs are covered with about $1k profit each month factoring the 2 units.

Thanks in advance for any advice or comments.