Managing rental properties in Los Angeles comes with its own set of challenges. Between California’s statewide regulations and the city’s specific rent laws, it’s crucial for landlords to stay informed to protect their investments and avoid costly mistakes. Here are the top five most important rent laws every L.A. landlord should know.
1. California’s Statewide Rent Control (AB 1482)
California’s Tenant Protection Act of 2019 (AB 1482) applies to most rental properties across the state, setting strict caps on annual rent increases.
Rent Cap: Rent increases are limited to 5% plus the local inflation rate (CPI), with a maximum of 10% annually.
Who’s Covered: Multifamily properties over 15 years old and single-family homes owned by corporations or REITs.
Exemptions:
Single-family homes and condos owned by individuals.
Properties built within the last 15 years.
This law ensures rent increases are reasonable while allowing property owners to keep up with inflation.
2. Los Angeles Rent Stabilization Ordinance (RSO)
For properties built before October 1978, Los Angeles’ Rent Stabilization Ordinance (RSO) imposes even stricter limits.
Annual Caps: Rent increases are generally limited to 3-5%, depending on city guidelines.
COVID-19 Freeze: Rent increases have been frozen for RSO properties since March 2020. This freeze is expected to lift in 2024.
If your property falls under the RSO, it’s critical to follow these rules to avoid tenant disputes and legal penalties.
3. Tenant Notice Requirements
California law outlines specific timelines for notifying tenants about rent increases:
30 Days’ Notice for increases under 10%.
90 Days’ Notice for increases of 10% or more.
Notices must be in writing and delivered according to legal guidelines. Failing to provide proper notice can void the increase and lead to disputes.
4. Tenant Relocation Assistance (Tenant Protection Ordinance)
L.A.’s Tenant Protection Ordinance requires landlords to provide financial assistance if tenants are temporarily displaced due to renovations or habitability issues.
When It Applies: Major renovations, such as electrical upgrades or retrofits, that require tenants to vacate.
Relocation Costs: Landlords must cover tenant relocation expenses, which can range from several thousand dollars per tenant.
Planning ahead for these potential costs can help you manage renovations smoothly.
5. The Ellis Act
The Ellis Act governs how landlords can withdraw rental units from the market if they decide to exit the rental business.
Requirements:
Provide tenants with at least 120 days’ notice (1 year for seniors or disabled tenants).
Pay relocation fees based on the number of tenants and unit type.
Impact: Mismanaging Ellis Act withdrawals can lead to legal disputes and significant fines.
This law is a last resort for landlords facing unsustainable rent control regulations.
Why These Laws Matter
Understanding and following these rent laws is vital for protecting your investment and maintaining good tenant relationships. Non-compliance can result in fines, lawsuits, or reputational damage, making it essential to stay informed.
How Strategic Growth Real Estate Can Help
At Strategic Growth Real Estate, we’re committed to helping landlords navigate the complexities of L.A.’s rental market. Whether it’s understanding rent control, tenant protections, or compliance requirements, our team is here to guide you every step of the way.
Contact us today for expert advice, and follow our blog for more actionable insights!
- Strategic Growth Real Estate
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