So You Wanna Be a Real Estate Tycoon (But Mostly Just Not Screw Over Your Tenants): A Guide to Rent Increases in LA County
Ah, Los Angeles. The land of dreams, movie stars, and...ever-increasing rent prices! If you're a landlord here, you might be wondering, with a gleam in your eye and a dollar sign in your pupils: "How much can I squeeze out of my tenants this time?"
Hold on to your metaphorical horses, there, champ. While the City of Angels might be pricey, there are some rules you gotta follow before you turn into a Scrooge McDuck villain. Let's break it down, shall we?
First Things First: Rent Control or Not Rent Control, That is the Question
Los Angeles County is a patchwork of cities, each with its own rent control laws. The big kahuna, the City of LA itself, has rent stabilization in place, which basically means you can't raise rents willy-nilly.
Did You Hear That? It's the Sound of Relief From Your Tenants
Now, things get a little more interesting. As of February 1st, 2024, there's a temporary thaw in the rent freeze. You can increase rents by a maximum of 4%, with an extra 1% each if you pay for the tenant's gas and/or electricity (because let's face it, those bills are brutal). But be warned! This only applies to apartments covered by the City's Rent Stabilization Ordinance (RSO).
Not Sure if Your Place is RSO-Controlled? Don't Play Rent Hike Roulette!
Here's the fun part: figuring out if your rental unit is subject to the RSO. Don't worry, it's not like some grand treasure hunt (although finding affordable housing in LA might feel that way sometimes). The City of LA has a handy dandy website where you can check: [link to LA City Rent Stabilization Ordinance website].
Alright, Enough City Talk. What About the Rest of LA County?
Fear not, landlords of unincorporated areas (fancy term for places not technically part of a city)! There's the Mobilehome Rent Stabilization Ordinance (whew, that's a mouthful) to consider. This lovely law limits annual rent increases for mobilehome spaces to a maximum of 4% until June 30th, 2024.
But Wait, There's More! (Because California Loves Layers)
There's also the statewide Tenant Protection Act, which applies to all rentals not covered by stricter local laws. This act limits rent increases to 5% + the local Consumer Price Index (CPI) or a maximum of 10%, whichever is lower. For reference, as of August 2023, the limit is 8.8%.
Phew! That Was a Lot. Here's the TL;DR for Busy Landlords (and Tenants Who Want to Be Informed)
- Los Angeles City: Rent increases are currently limited to 4% with potential additions for utilities (if you pay them) until June 30th, 2024. Check the RSO website to see if your unit applies.
- Unincorporated LA County: Mobilehome spaces can only see rent hikes of up to 4% until June 30th, 2024.
- Everywhere Else in LA County: The statewide limit of 8.8% applies unless there's a stricter local ordinance.
Remember, Renters are People Too (and They Vote!)
While you might be looking to maximize your profits, it's always good to be a decent human being. Raising rent excessively can force good tenants out, leading to vacancies and headaches for you. Consider being fair and keeping good tenants happy. A little kindness goes a long way (and might even save you money in the long run).
Disclaimer: This is not legal advice. Please consult with a lawyer or tenant association for specific information on rent increases in your area.
