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Everything You Need to Know About Los Angeles Rent Stabilization Ordinance (RSO)

Writer's picture: Strategic GrowthStrategic Growth

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:


  1. 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.

  2. 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.

  3. 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.

  4. "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:

  1. At-Fault Evictions

    • Non-payment of rent

    • Violating lease terms or causing property damage

    • Using the rental unit for illegal purposes

  2. 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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