Rent Control in Los Angeles

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 What Are the Rent Control Rules in Los Angeles?

There are many cities, including the city of Los Angeles, that have rent control ordinances that protect tenants from significant rent increases. This guide can help an individual determine whether or not they are protected by rent control and how they are protected.

Is My Home Protected by Rent Control?

In order to qualify for rent control protections, an individual’s rented home must:

  • Be within Los Angeles city boundaries;
  • Have two or more rental units included on the lot;
  • Be built before October 1, 1978.

Properties that are not protected by rent control include:

  • Single-family dwellings;
  • Properties built after October 1, 1978;
  • Government-owned properties;
  • Hotels and motels.

What Is a Tenant?

A tenant is an individual who occupies or possesses land or a residence by renting it from a landlord. A tenant has the right to occupy and use specific rental properties based on rental agreements, or leases, that are established and signed by the tenants and the property owners or landlords.

Tenants are provided with this right so long as they follow the terms and conditions which are set forth by the lease, which includes paying rent.

What Protections Do I Get With Rent Control?

If an individual’s unit is protected by rent control, the following will apply:

  • The rent cannot be raised more than one time in a 12-month period;
  • The landlord must provide 30 days written notice prior to raising the rent;
  • The baseline rent may not be increased by more than a small percentage, which is set annually by the consumer price index;
    • In general, 3-5% is allowed per year.

Can My Landlord Raise My Rent for Other Reasons?

While an individual’s landlord cannot raise their base rent by more than a fixed percentage, a landlord is allowed to increase an individual’s rent slightly for other costs they may incur, such as utilities and renovations. A landlord can raise rent by 1% each year for both gas and electricity if they pay for the utilities.

For example, if an individual was paying $1,000 a month for rent in 2021 and the CPI was 3%, the landlord may only raise rent by 3% plus 1% for gas and 1% for electricity if the landlord pays for those utilities. This means that in 2022, the rent would increase by a maximum of 5% to $1,050.

Can a Landlord Raise Rent by More Than the Maximum After a Tenant Vacates?

Yes, a landlord may raise rent more than the maximum once a tenant vacates the property. At that time, the landlord can set the rent at market price.

It is important to note, however, that the tenant has to vacate the property voluntarily or be evicted for a legitimate reason, such as:

  • Failing to pay rent;
  • Violation of rule on the lease;
  • Creating a nuisance; or
  • Using the property for illegal purposes.

A landlord is not permitted to engage in a wrongful eviction in bad faith simply so they can raise the rent.

What Is Rent Control and How Does It Work?

Rent control laws, also referred to as rent stabilization laws, are local ordinances that provide regulations governing rent levels and evictions of tenants. There is a local board that will determine the levels of rent by examining several factors, including:

  • Cost of living;
  • Consumer price index or CPI;
    • This is a weighted average of the prices in urban areas;
  • Rental unit type.

If a unit is vacant and is located in a rent control area, the maximum amount that a landlord can raise the rent is based upon the level that is set by the board. These levels are typically below market value.

Once a tenant has signed a lease, the landlord is limited on how much they can increase the rent annually. In general, the longer a tenant remains in a rent control unit, the less their rent payment will become relative to their income and the market value of the unit.

Rent control laws are typically seen as favoring tenant’s rights because they help stabilize the rent levels. Landlords typically do not favor these laws because they limit the returns on their investment properties.

There are certain states that have passed vacancy decontrol regulations to help protect landlords.

What Is Vacancy Decontrol?

Vacancy decontrol regulations provide a rent amount at near market levels or at market levels when a unit is vacant and regulate any raising of the rent. In some cases, vacancy decontrol provides guidelines as to how high the rent can be raised from the previous rent of the unit, for example, a 10% increase.

This increase takes effect when a new tenant signs a lease. Vacancy decontrol regulates rent increases in certain ways, including:

  • A percentage of existing rent;
  • The Consumer Price Index or CPI;
  • Based on the tenant’s household income.

Can a Landlord Increase a Residential Tenant’s Rent in a Jurisdiction With No Rent Control?

In general, a residential landlord may increase a tenant’s rent without limitations in jurisdictions that do not have rent control. Landlords have to terminate any existing lease and create a new lease agreement in order to increase a tenant’s rent. This is done by providing proper notice to the tenant that their current lease will be terminated and a new lease agreement is offered to the tenant with the higher rent amount. Proper notice must typically be in writing.

Landlords are required to respect any existing lease agreements. The amount of rent increase is usually determined by market conditions.

If a landlord wants the existing tenant to remain on the property, they may want to discuss any rent increases with that tenant. The rent increase may be permitted by law, and the tenant received a valid notice of the increase. If that is the case, the tenant has to either agree to the rent increase or make arrangements to terminate the tenancy and vacate the premises.

If the tenant does not agree to the increased rent and a new tenancy but does not vacate the premises, the tenant will be subject to eviction. The only states in the United States with statewide rent control include California and Oregon.

There are a few states and districts that allow cities and counties to enact rent control laws, including:

  • New York;
  • New Jersey;
  • Maryland;
  • Washington, D.C.

In larger cities, rent-controlled residential units may be found in:

  • New York City;
  • Los Angeles;
  • San Francisco;
  • Oakland.

In New Jersey, Newark and several other cities have rent control ordinances. New Jersey has the most cities of any state that have rent-controlled residential units.

In many states, rent control is prohibited. There are three states that do not have any laws regarding rent control, including Alabama, Montana, and Wyoming.

Even in a state that does not have rent control, the state will have landlord-tenant laws that govern residential tenancies. Both tenants and landlords would want to refer to the laws in their state, county, or city to determine when tenancy rent increases are possible and the kind of notice that the landlord must provide the tenant.

If an individual has any questions regarding landlord/tenant issues, they should consult with a local attorney.

Contacting an Attorney

If you have any issues, questions, or concerns related to rent control in Los Angeles, it is essential to consult with a Los Angeles landlord-tenant lawyer. If you are considering moving into a rent-controlled unit, your lawyer can review your lease and explain the laws of your area.

You may already be in a lease, and your landlord wants to raise your rent. In this case, your attorney can ensure that the raise is legal. If you have a dispute with your landlord, your attorney will help you obtain the best possible outcome.

If you are a landlord, your lawyer can ensure that your rent raises are legal in your jurisdiction and ensure your lease is valid and enforceable. If you have a dispute with a tenant or need to evict a tenant, your lawyer can help.

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