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Los Angeles Rent Stabilization Ordinance 2024

Rent Stabilization Standards in the City of Los Angeles

About one million of Los Angeles’ 1.5 million households rent their homes. About 650,000 of those homes are in units covered by the rent-stabilization ordinance (RSO), which is applicable to units constructed before 1979.

Park La Brea Apartments

Rent increases for units covered by the RSO occur in two ways. First, when a new tenant moves in, rents may be set at market levels because there is no ceiling on the initial rent for a new tenant. During a tenancy, rents may be increased by the permitted annual across-the-board increases.

In May 2024, the Economic Roundtable project team completed a report analyzing the RSO that has not yet been released by the City of Los Angeles. The report describes:

  • Rent Savings for RSO Tenants
  • Returns from Rental Properties
  • RSO and Non-RSO Renters Compared
  • Vulnerable Renters
  • Rent Increases and Homelessness
  • Financial Stress of RSO Landlords by Building Size
  • Impact of the Covid Pandemic on Landlords
  • Market-Rate Rents, Restricted Rents, and Inflation
  • The History of Rent Increase Standards under the RSO
  • Operating Expenses and Other Costs for Low-Income Housing
  • Increases in Apartment Operating Costs
  • Returns from Rental Properties
  • Rent Increases for Landlords Who Pay for Gas and/or Electricity
  • Accessory Dwelling Units
  • Allowable Annual Rent Adjustments in Other California Cities
  • The Annual Increase Standard
  • Compliance Issues