Legal Essentials Every Property Manager in Los Angeles Must Include

Managing rental properties in LA isn't just about finding tenants and handling maintenance it’s navigating a unique mix of city, state, and federal laws. Miss one detail, and the risks to your reputation and finances climb fast. But when you're proactive polishing leases, knowing local ordinances, and staying transparent you build trust and safeguard your business.

Let’s dive into the legal essentials every LA property manager must include, with practical insights tailored to our city.

Lease Agreements & Tenant Contracts

Your lease is the first real defense against misunderstandings and legal disputes.

In LA, leases must include legally required notices like the Megan’s Law sex offender website alert. California law (AB 12, effective July 1, 2024) limits most security deposits to one month's rent, unless the tenant has a waterbed, which can go up to 1.5× the rent.

Always include clear payment terms, maintenance duties, and termination conditions, aligned with both state and local regulations. Regularly review and update the lease to avoid outdated clauses.

Local Rent Control & Notice Requirements

Los Angeles imposes additional layers beyond state law.

• If the property was built on or before October 1, 1978, it likely falls under the Rent Stabilization Ordinance (RSO), with strict rules on rent increases and eviction grounds.

• Otherwise, the Just Cause Ordinance (JCO) applies, protecting tenants from unjust evictions.

• AB 2347 (2025) extends the time for tenants to respond to eviction notices and accelerates court timelines, making compliance even more critical.

• Rent increase notices must be handled correctly:

  • 30 days’ notice for increases up to 10%

  • 90 days’ notice for increases over 10%

• California law caps annual increases to 10% or 5% plus cost-of-living (whichever is lower).

Fair Housing & Tenant Protections

LA demands strict adherence to state and federal anti-discrimination laws.

• The Fair Housing Act prohibits discrimination based on protected characteristics.

• California law bars retaliation against tenants who file complaints or participate in tenant organizations.

• Even lease-end evictions require just cause landlords cannot arbitrarily force tenants to leave.

Habitability & Repair Standards

Your legal obligation: provide habitable rental units.

California law requires:

• Safe, functional utilities

• Structural integrity

• Freedom from pests

• Adequate weatherproofing

Tenants may legally withhold rent or use “repair and deduct” remedies (up to twice per year) if landlords fail to maintain habitable conditions.

Licensing & On-Site Management Rules

Property managers in LA must follow licensing and staffing requirements:

• A real estate broker’s license is required to perform property management tasks for compensation (with some exceptions).

• Buildings with 16 or more units require an on-site manager who resides at the property.

  
  

Security Deposits & Move-In Documentation

Protect both yourself and tenants with clear deposit practices.

• Maximum deposit: one month’s rent (unless the unit has a waterbed).

• Provide photo or video documentation at move-in and move-out, as required by AB 2801 (2025).

• Always give itemized deductions with receipts or photos to avoid disputes.

Evictions & Legal Disputes

Evictions in Los Angeles are heavily regulated.

• Tenants now have 10 days to respond to eviction complaints instead of 5.

• Landlords must use proper court procedures self-help methods like lockouts or shutting off utilities are illegal.

• Mediation is encouraged to resolve disputes without litigation.

• For Ellis Act evictions (leaving the rental business), city filings and relocation aid may apply.

Record-Keeping & Trust Accounts

Details matter in LA.

• Maintain thorough rent logs, repair requests, inspection reports, and lease agreements.

• Brokers handling client funds must use trust accounts and follow strict reporting requirements.

• Keep records for several years to protect against future legal claims.

Insurance & Risk Management

Protect assets and operations with the right coverage.

• Carry general liability insurance and professional liability (E&O).

• Require tenants to hold renters insurance.

• In LA, consider coverage for natural disasters such as wildfires or earthquakes.

• Avoid rent gouging during declared emergencies state law caps rent increases (typically 10%).

Legal Counsel & Local Resources

Property managers should never navigate LA’s complex rental landscape alone.

• Work with a real estate attorney for guidance.

• Partner with tenant-rights organizations like the Coalition for Economic Survival (CES) to stay informed.

• Join professional associations like IREM or NARPM for compliance training and industry updates.

Final Thoughts

Los Angeles property management is complex but also rewarding when done right. By staying compliant with local laws and being transparent with tenants, you build trust, reduce disputes, and create smooth operations.

At Strategic Growth, we lead with clarity and care empowering landlords and tenants with confidence and protection. Build your operations on these legal essentials today.

Sources & Further Reading

• Los Angeles Housing Department - Rent Stabilization Ordinance & Just Cause Ordinance (housing.lacity.gov)

• California Dept. of Real Estate – Licensing & Trust Account Rules (dre.ca.gov)

• California Tenant’s Guide – Rights & Responsibilities (Dept. of Consumer Affairs)

• California Apartment Association – AB 2347 Eviction Timelines (2025)

• California Tenant Protection Act & Rent Increase Notice Rules

• California Civil Code – Security Deposit and Habitability Laws

• AB 12 Security Deposit Cap & AB 2801 Documentation Requirements

• Coalition for Economic Survival (CES) – Tenant Advocacy in Los Angeles

• Nolo Legal Guide – Habitability & Tenant Rights

• California Emergency Price-Gouging Laws