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LA City vs. LA County 2025 Rent Increase Limits: What's the Difference?

Written by The Group CRE | Dec 11, 2024 8:04:51 AM

Navigating rent increase limits in Los Angeles can be complex, especially with differing regulations between LA City and LA County. Here's a straightforward breakdown of what landlords and tenants need to know for 2025.

Los Angeles City

Under LA City's Rent Stabilization Ordinance (RSO), which applies to most rental properties built before October 1, 1978, rent increases are regulated as follows:

  1. Rent Cap: For the period from July 1, 2024, to June 30, 2025, the allowable rent increase is 3.206%, calculated as 75% of the change in the Consumer Price Index (CPI). DCBA

  2. Tenant Protections: The RSO provides additional tenant protections, including just-cause eviction requirements and relocation assistance under certain conditions. Housing L.A.

Los Angeles County

In unincorporated areas of Los Angeles County, the Rent Stabilization and Tenant Protections Ordinance (RSTPO) governs rent increases:

  1. Rent Cap: Effective January 1, 2025, annual rent increases for fully covered rental units are limited to 60% of the percentage change in the average CPI over the previous twelve-month period. DCBA

  2. Tenant Protections: The RSTPO includes just-cause eviction protections and mandates relocation assistance for no-fault evictions. DCBA

Key Differences Between LA City and LA County Rules

  1. Coverage:

    • LA City: The RSO primarily covers rental properties built before October 1, 1978.
    • LA County: The RSTPO applies to rental units in unincorporated areas, with specific criteria for coverage.
  2. Rent Caps:

    • LA City: Allows a 3.206% increase for the specified period.
    • LA County: Limits increases to 60% of the CPI change, effective January 1, 2025.
  3. Enforcement:

    • LA City: Enforces regulations through the Los Angeles Housing Department, offering resources for tenants and landlords. Housing L.A.
    • LA County: Managed by the Department of Consumer and Business Affairs, providing guidelines and support for compliance. DCBA

Impact on Landlords

  • Compliance: Adhere to the specified rent increase limits to avoid penalties.
  • Notification: Provide tenants with proper notice of any rent increases, as required by law.
  • Stay Informed: Keep up-to-date with any changes to regulations that may affect your properties.

Stay Updated

Housing policies can change, so it's essential to stay informed. For the most current information, refer to official city and county resources:

  • LA City Housing Department: Housing L.A.
  • LA County Rent Stabilization Program: DCBA

For more resources related to these changes, check out this article.

 

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.