So You Wanna Be a Big Shot Landlord in LA, Huh? (But Can You Actually Raise the Rent?)
Ah, Los Angeles. The land of dreams, movie stars, and...ever-increasing rent prices (or so you'd think). But hold on to your overpriced avocado toast, aspiring landlord, because raising rent in the City of Angels isn't quite as simple as slapping a new price tag on the door.
The Rent Freeze Fiasco: A Brief History Lesson (For Your Amusement)
Let's face it, LA's rent situation is more dramatic than a telenovela. We just emerged from a rent freeze that would make Elsa from Frozen proud (let it go, let it go, those rent increases!). This means from March 2020 to January 2024, rents couldn't budge an inch. That's right, even if your tenants were channeling their inner rockstar and turning your place into a mini-concert venue every night (we feel your pain), you couldn't raise the rent. Rough times for the landlord life, right?
But Wait, There's a Rent Thaw (and Maybe a Raise!)
Fear not, fellow landlords! As of February 1st, 2024, the rent freeze finally bit the dust. Now, you can increase rent, but with some limitations dramatic music intensifies. Here's the juicy part:
- You can raise rent by a maximum of 4%. That's a measly 4%, folks. Barely enough to cover the cost of a trendy, overpriced latte these days.
- Feeling generous? You can add an extra 1% if you pay for your tenant's gas, and another 1% for electricity. So basically, you're bribing them with slightly cheaper utilities to accept the rent increase. It's a bold strategy, Cotton, let's see if it pays off!
But Is My Rental Unit Even Subject to Rent Control?
Hold your horses there, champ. This whole rent increase bonanza only applies to units covered by the Los Angeles Rent Stabilization Ordinance (RSO). Not sure if your place qualifies? Don't fret, there's an app for that (well, kinda). Head over to zimas.lacity.org and type in your address. Voila! Instant RSO knowledge.
Local Laws: Your Rent Increase Kryptonite
Remember, this is LA, and things are about as complicated as a Kardashian family tree. Some cities within LA have their own rent control laws, and guess what? They might be stricter than the citywide RSO. So, if your rental property resides in Burbank or Santa Monica (fancy you!), you'll need to check their local regulations to see what the maximum rent increase is.
The Bottom Line: Rent Increases? Maybe. But Definitely Do Your Homework.
So, can you raise rent in LA? The answer is a resounding "it depends." Between the rent freeze thaw, the measly increase percentages, and the possibility of stricter local laws, it's not exactly a free-for-all for landlords. But hey, at least it's not a complete rent freeze anymore, right? Just remember to do your research before slapping that rent increase notice on your tenant's door. You wouldn't want to end up in a rent-related courtroom drama, would you?
