Owning rental property in Los Angeles can be exciting, but if your property falls under the Rent Stabilization Ordinance (RSO), there are some essential rules you need to know.
The RSO protects tenants while regulating what landlords can and can’t do.
Here’s a quick, easy-to-understand guide to help you navigate the basics.
What is the RSO?
The Rent Stabilization Ordinance applies to rental properties built on or before October 1, 1978 and certain newer replacement units. These rules are here to regulate rent increases, manage evictions, and ensure fair treatment for both landlords and tenants.
Here are the types of properties that fall under RSO:
Apartments, condominiums, townhomes, and duplexes
Multiple single-family homes on one lot
Units in commercial buildings, ADUs, and JADUs
Hotel or boarding house rooms rented for more than 30 days
Mobile homes and RVs in mobile home parks
What Does the RSO Cover?
The RSO is all about balance. It protects tenants from excessive rent hikes while ensuring landlords can maintain their properties and businesses. Here’s what’s included:
Rent Increases
Sets limits on how much and how often rent can increase.
Landlords can only raise rent once a year, following city-approved percentages.
Evictions
Provides clear rules on legal reasons for evictions, such as non-payment or owner move-ins.
Requires no-fault evictions (e.g., demolition or government orders) to include tenant relocation assistance.
Registration & Fees
All RSO units must be registered annually with the Los Angeles Housing Department (LAHD).
Landlords can share part of the registration fee with tenants.
"Cash for Keys" Agreements
Regulates tenant buyouts, ensuring transparency in agreements where tenants voluntarily move out.
When Can You Raise Rent?
The RSO allows rent increases, but they come with restrictions:
Without Approval:
If tenants voluntarily move out, fail to pay rent, or violate their lease, landlords may reset the rent to market rate.
A small surcharge for utilities or certain fees (like smoke detectors) is also allowed.
With Approval:
Major property upgrades, such as seismic retrofits or capital improvements, may qualify for higher rent increases.
From March 2020 to January 2024, rent increases were paused for RSO properties due to the pandemic.
Legal Reasons for Eviction:
Evictions under the RSO fall into two categories:
At-Fault Evictions
Non-payment of rent
Violating lease terms or causing property damage
Using the rental unit for illegal purposes
No-Fault Evictions
Owner or family member moving in
Property demolition or government orders
Conversion to affordable housing
Keep in mind that no-fault evictions require tenant relocation assistance, and landlords must follow strict notice timelines.
How Strategic Growth Real Estate Can Help
Understanding the RSO can be overwhelming, especially when juggling day-to-day property management.
That’s where Strategic Growth Real Estate steps in. We specialize in:
Determining if your property falls under the RSO.
Navigating rent increases and ensuring compliance with city regulations.
Handling tenant notices, evictions, and relocation assistance.
Managing annual registration and fee collection.
By working with us, you can save time, avoid legal headaches, and ensure your property stays in good standing with the City of Los Angeles.
Stay Informed
RSO regulations are detailed, but they’re there to protect everyone involved. Whether you’re a seasoned landlord or just starting out, understanding these rules is essential for smooth property management.
Source: Los Angeles Housing Department (LAHD)
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