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Jan 2025: LA City Council Meeting + Regulation Updates

By  The Group CRE  ·  3 minute read

As 2025 approaches, several key regulatory changes are set to impact property owners in Los Angeles City and County. From new enforcement programs to proposed statewide rent freezes, staying informed is crucial for landlords navigating the evolving legal landscape. Here’s what you need to know, from the Los Angeles City council meeting held on Thursday, Jan 29, 2025:

 

1. New Enforcement Program for Non-RSO Rentals (Los Angeles City)

A new enforcement program has been introduced for non-Rent Stabilization Ordinance (RSO) properties, which include post-1978 multifamily units, single-family homes, condos, and accessory dwelling units (ADUs).

Key Details:

  • Annual Fee: $31.05 per unit for non-RSO properties.

  • Deadline: Initial payment due by February 28, 2025; late penalties can reach up to 150% of the fee.

  • Compliance Requirements: Landlords must pay the fee, obtain and display LA Housing Department (LAHD) registration, and may be required to pause rent collection until compliant.

 

Enforced Ordinances Include:

  • Economic Displacement Fees: Up to $12,205 for rent increases exceeding 5% plus CPI (8.9%).

  • Just Cause Evictions: Relocation fees up to $27,500 for no-fault evictions.

  • Eviction Thresholds: Evictions allowed only if the tenant owes at least one month’s fair market rent.

  • Tenant Harassment Penalties: Financial consequences for landlord harassment.

  • COVID Pet Amnesty: Landlords must accommodate pets acquired during the pandemic.

 

2. AB-246: Proposed Statewide Rent Freeze & Vacancy Control

A newly proposed bill, AB-246, aims to introduce a 12-month rent freeze and vacancy control measures that could significantly impact landlords in California.

Key Provisions:

  • Rent Freeze: Locks rents at January 7, 2025, levels for all of LA County for 12 months.

  • Vacancy Control: Prevents landlords from increasing rent between tenants, overriding existing AB-1482 protections.

  • Enforcement: The District Attorney’s office would handle violations, imposing penalties of up to $10,000.

 

Potential Impacts:

With rising insurance costs, inflation, and wildfire-related expenses, landlords could face additional financial strain under these measures.

 

Action Steps:

Contact key Assembly Members before the February 15, 2025, vote to express support or concerns about AB-246.

 

3. Local Measures Following Recent Wildfires

Several local measures have been enacted in response to the displacement caused by recent fires:

  • Eviction Protections: Tenants housing displaced individuals, including those with pets, are protected from eviction in unincorporated areas of LA County.

  • Vacation Rentals: Temporary policies now permit multiple short-term rental listings, including ADUs, to help increase housing supply.

 

4. AB-2801: New Security Deposit Regulations

Starting in 2025, new security deposit requirements will go into effect, emphasizing transparency in deductions and tenant rights.

Key Dates & Requirements:

  • April 1, 2025: Landlords must photograph units after tenant move-out and before any repairs or cleaning.

  • July 1, 2025: For new tenancies, landlords must also document the unit’s condition before move-in.

  • Photo Documentation: Landlords must provide tenants with date-stamped photos from before move-in, after move-out, and post-repair to justify any security deposit deductions.

  • Carpet Cleaning Restrictions: Deductions for carpet cleaning are allowed only if necessary to restore it to its original condition at move-in, excluding normal wear and tear.

 

5. Additional Updates for Property Owners

  • Insurance: Some policies are now limited to properties with 1–4 units; landlords should explore options with providers like AAA or Mercury.

  • Short-Term Rentals (STRs): STRs are now permitted in ADUs for stays shorter than 30 days.

  • West Hollywood: The city has abolished its 1-year minimum lease requirement, which may impact rental agreements.

 

How to Stay Ahead in 2025

A single year of strategic management, market-responsive decision-making, and smart property improvements can significantly impact your investment returns. To navigate these regulatory changes effectively:

  1. Stay Informed: Keep an eye on legislative developments and upcoming votes that may impact your properties.

  2. Consult Professionals: Engage with legal and property management experts to ensure compliance with new regulations.

  3. Advocate for Your Interests: Consider reaching out to lawmakers to express support or concerns regarding proposed measures.

 

Looking Ahead

These regulatory changes will shape the multifamily market in 2025. Proactively adapting to rent control measures, taxation policies, and development regulations can safeguard your investment. Want to discuss how these updates impact your property? Reach out at taylor@thegroupcre.com or 916-996-4421.

At The Group CRE, we stay on top of these changes so you don’t have to. Whether you’re considering selling, holding, or just want a clearer picture of your property's value under the new regulations, let’s work together to create a winning strategy.

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Taylor Avakian is a multifamily investment expert and the host of No Vacancy, a podcast dedicated to exploring the latest trends, strategies, and insights in the real estate market. As the founder of The Group CRE, Taylor specializes in helping landlords and investors navigate the complexities of multifamily ownership in Los Angeles.