Breaking Down the New Rent Increase Limits in Los Angeles

Los Angeles landlords and tenants are stepping into a new chapter of rent regulations for 2025–26. From tighter rent increase caps to expanded tenant protections like the Right-to-Counsel ordinance, staying compliant has never been more important. Whether you own a single rental unit or manage multiple buildings, these changes directly impact how you handle rent increases, lease paperwork, and eviction notices. Here’s what you need to know to protect your investment while keeping tenant relationships strong.

1. What You Can Charge Rent Caps for 2025–26

City of Los Angeles (RSO units)

• Base rent increase: 3.0% for the period July 1, 2025 through June 30, 2026.

• Extra utility allowance: add an additional 1% for electricity and another 1% for gas if the landlord pays these utilities.

• In total, that means up to 3% + 1% + 1% = 5% if utilities are included.

• Landlords must provide 30-day written notice for rent hikes of 10% or less under state law (members.aagla.org).

  
  

Los Angeles County (Unincorporated Areas under the RSTPO)

• Maximum annual rent increase (starting January 1, 2025): 60% of the 12-month CPI change ending September or 3% cap whichever is less.

• Qualifying small property landlords may add 1% (max 4%).

• Luxury units may add 2% (max 5%) (dcba.lacounty.gov).

If you manage both city- and county-jurisdiction properties, you’ll want to apply the appropriate local rule based on location.

2. Why These Caps Matter

• Local overrides: Even though state law (AB 1482) allows up to 8% (5% + CPI ~3%), RSO and County ordinances override with stricter local caps (3–5%)

• Safe increases: Staying within these caps keeps you compliant and avoids tenant disputes or challenges.

3. 📄 New “Right-to-Counsel” Rules: What Landlords Must Do

City of Los Angeles RTC Ordinance (effective April 1, 2025; full compliance by August 25, 2025)

• You must provide tenants with a City-approved Notice of Right to Counsel:

  • At lease signing (beginning of tenancy) in the tenant’s primary language.

  • With any eviction or termination notices (including Section 8 subsidy terminations).

  • Posted in common areas: lobby, mail room, entrance, on-site management office.

• The city provides translated forms in multiple languages (Spanish, Korean, Tagalog, Armenian, etc.)

Los Angeles County RTC Ordinance (effective January 1, 2025)

• Applies to unincorporated County areas:

  • Provide the Tenant Right-to-Counsel notice upon issuing an eviction-related notice or notice of termination of tenancy.

  • Post the notice in common public areas and the on-site office.

  • Notice must be in English and the lease language 

• Non-compliance can result in civil penalties up to $800 per violation per day and tenants may raise compliance failure as a defense in eviction proceedings

4. Why This Matters for Landlords & Property Managers

• Avoid fines: Failure to post or serve notices properly opens the door to penalties of up to $800/day (County), or even tenant defense rights in eviction cases (City).

• Legal exposure reduction: Proper notification limits tenants' ability to assert non-compliance in court.

• Preserve landlord-tenant relationships: Transparency and language-specific materials build trust and reduce friction.

5. What to Do—Your Action Plan

Step	Action
1. Determine jurisdiction	City vs. unincorporated County for each property
2. Calculate rent caps	RSO: 3% (+ up to 2%), County RSTPO: CPI-based (max 3–5%)
3. Prepare rent increase notices	Include small property/luxury unit self-certifications if needed (County)
4. Integrate Right-to-Counsel notices	Use official city/county forms, provide at lease-up and with any eviction notice
5. Post notices physically	Common areas and offices keep templates multilingual
6. Train staff & keep records	Track lease dates, notice delivery, posting dates retain records at least 3 years
7. Consult legal counsel	Especially before initiating eviction filings or disputes

6. Quick FAQ—avoid confusion

• Q: Does AB 1482 still apply?A: Yes state law allows up to 8% in most non-local-ordinance units, but local ordinances override tighter limits where they apply

• Q: Are luxury units treated differently?A: Yes County allows up to 5% for luxury units (2 bedrooms or less in buildings with ≥25 units, rent ≥ $4,000 as of 9/11/18); City does not distinguish luxury units for the RSO cap

• Q: What if my renter earns too much?A: Right-to-Counsel protections apply only to tenants earning ≤80% of Area Median Income (~≤$84,850 single; ≤$121,150 for 4-person household)

  
  

Final Thoughts for Strategic Growth Landlords

Rent increase caps and Right-to-Counsel obligations aren’t just legal checkboxes they’re opportunities to protect your assets and strengthen tenant relationships. By aligning your policies with the City’s 3% + utilities and County’s CPI-based structure, serving correct notices on time in the right languages, and posting them visibly, you reduce risk and foster trust.

As 2025–26 begins, Los Angeles landlords face stricter rent caps and stronger tenant protections than ever before. Staying updated on both City and County rules will help you avoid costly mistakes and maintain good tenant relationships.

The landscape may feel complex, but with clear communication and careful compliance, landlords can successfully navigate this new chapter.

Sources & Compliance References

• City of LA RSO rent cap: 3% + up to 2% utility extras effective July 1, 2025–June 30, 2026 (members.aagla.org)

• LA County RSTPO rent caps by CPI: 60% CPI, small-landlord +1%, luxury +2% (max 3–5%) from January 1, 2025 (dcba.lacounty.gov)

• City Right-to-Counsel requirements effective April 1, 2025; full compliance by August 25, 2025 (housing.lacity.gov)

• County Right-to-Counsel requirements starting January 1, 2025 with notices and posting obligations (dcba.lacounty.gov)

• Penalties and tenant defense rights on non-compliance (dcba.lacounty.gov)