6.20.030 Definitions.
“Base rent” shall mean the reference point from which the lawful tent shall be determined and adjusted in accordance with this chapter.
1. The base rent for tenancies that commenced before May 8, 2023, shall be the rent in effect on May 8, 2023.
2. The base rent for tenancies that commenced on or after May 8, 2023, shall be the initial rental rate charged upon initial occupancy, provided that amount is not a violation of this chapter or any provision of state law. The term “initial rental rate” means only the amount of rent actually paid by the tenant for the initial term of the tenancy.
“Fair return petition” shall mean a petition made by an owner of residential real property for a rent increase in excess of that provided in Larkspur Municipal Code Section 6.20.040 in order to obtain a fair and reasonable return on their property.
“Reasonable rate of return” shall have the meaning assigned the term by California and federal courts in precedential published opinions regarding rent stabilization ordinances for residential tenancies. Generally, within the context of a rent stabilization ordinance, the term refers to a rate of just and reasonable return on an owner’s property that is high enough to encourage and reward efficient management, discourage the flight of capital, maintain adequate services, and enable operators to maintain and support an owner’s credit status, but not so high as to defeat the purpose of curtailing excessive rents and rental increases.
“Rent” shall mean all periodic payments and all nonmonetary consideration, including, but not limited to, the fair market value of goods and services rendered to or for the benefit of the owner under an agreement concerning the use or occupancy of residential real property, including, but not limited to, all payment and consideration demanded or paid for parking, pets, furniture and subletting. (Ord. 1067 § 2, 2023)