The RSO is designed to protect a landlord’s constitutional right to a “fair return” on their investment. Section 11-1.07 of the Antioch Municipal Code details the procedure for submitting a Fair Return Petition to the City for consideration of permitting a rent increase in excess of the rent increase limit under the RSO. This procedure includes providing a copy of the Fair Return Petition to the tenant and allowing 30 days for the tenant to respond and provide additional materials to the City. The procedure also requires the landlord to pay for the cost of the proceeding. A hearing officer will determine whether an increase in excess of the limit is justified to maintain a fair return.
Every Fair Return Petition will be decided on a case-by-case basis. It is possible that a hearing officer may determine that a higher increase is needed to maintain a fair return for a landlord that was charging less than they could have charged before the RSO took effect. However, there is no right to maximum profit, and rent charged prior to a regulation like the RSO tends to indicate a landlord was satisfied with the amount of profit made from the lease.