Recent rent control regulations have made it difficult for many investors to return a profit in the city of Los Angeles. Rent control puts pressure on owners to actively seek ways to reduce expenses in order to keep afloat.

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With the Rent Stabilization Ordinance in place, rules are outlined placing different restrictions such as rules of eviction, security deposit payments, occupancy rules, etc. Before investing in multifamily real estate, it is best for a buyer to fully understand the rules and regulations pertaining to a rent controlled property. In general, rent control is one of the major reasons why certain properties are more appealing to investors than others.

 

Although these neighborhoods are rent controlled, it does not mean you can’t turn a profit. There are several strategies that an owner can implement to maximize income and reduce expenses. If you’re interested in learning how to deal with rent control and get the most income out of your property, please give me a call at 818-915-9118.

 

If you’re looking for the rent control status of a specific property in the city of Los Angeles, it is best to visit the ZIMAS website. Additionally, you can verify other pertinent information regarding your property.

 

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Culver City

• Landlords may not impose more than one rent increase for a Covered Rental Unit in any twelve-month (12-month) period

• If CPI change is less than 2%, maximum allowable annual rent increase is 2%

• If CPI change is more than 5%, maximum allowable annual rent increase is 5%

• The maximum permissible annual rent increase 5.00% for increases effective between May 1, 2022 – July 31, 2022

 

Glendale

• Rent increases are capped at 5% plus CPI. (Glendale CPI for 2021 is 3.6%).

• Rent increases in Glendale can’t exceed 8.6% until the end of the year.

• Regardless of how high CPI is, rents cannot exceed 10% at any point as long as AB 1482 is in effect.

 

Inglewood

• The maximum increase within a 12- month period for Residential Rental Properties with 5 or more units is 3% or the cost of inflation (whichever is greater), as measured by the Consumer Price Index (CPI), not to exceed 10%.

• The maximum increase within a 12- month period for Residential Rental Properties with 4 or less units is 5% plus the cost of inflation, as measured by the Consumer Price Index (CPI), not to exceed 10%.

 

Los Angeles

• Annual rent increases limited to no more than 5% + local CPI (CPI = inflation rate), or 10% whichever is lower.

• For the Los Angeles-Long Beach region, the change in the CPI is 3.6%, so the maximum annual increase for properties subject to the provisions of Assembly Bill 1482 is 8.6%.

• Rent increases cannot begin an earlier than May 2023

 

Burbank

• In any 12-month period, a property owner can only increase rent by 5% plus the cost of living increase, currently about 3.6%. However, rents cannot be raised more than 10%.

 

Santa Monica

• Rent Increases are allowable for rent control units in the city of Santa Monica to a 1.7% increase up to a CAP of $39/month.

 

Beverly Hills

• If a rental housing provider issued a rent increase of less than the maximum allowable rent increase of 3.10% during the time period of July 1, 2019 through June 30, 2020, they may issue a maximum rent increase for the period of June 1, 2022 through June 30, 2023 of up to 3.10% reduced by the rent increase that was previously imposed.

 

West Hollywood

• Once increases are permitted, most tenants' rent may be raised 3% under the 2021/2022 annual adjustment

 

Unincorporated area of LA County

• Rent increases are limited to reflect the average annual change in Consumer Price Index (CPI) and may not exceed 8% in any 12-month period.

 

 

The following is a partial list of neighborhoods/cities within the county of LA. To check if your neighborhood is subject to rent control, please google your neighborhood/city.

 

• Angelino Heights • Arleta • Arlington Heights • Arts District • Atwater Village • Baldwin Hills • Baldwin Village • Baldwin Vista • Beachwood Canyon • Bel Air • Benedict Canyon • Berkeley Square • Beverly Crest • Beverly Glen • Beverly Grove • Beverly Hills • Beverly Park • Beverlywood • Boyle Heights • Brentwood • Brentwood Circle • Brentwood Glen • Broadway-Manchester • Brookside • Bunker Hill • Cahuenga Pass • Canoga Park • Canterbury Knolls • Carthay • Castle Heights • Central-Alameda • Central City • Century City • Chatsworth • Chesterfield Square • Cheviot Hills • Chinatown • Civic Center • Crenshaw • Crestwood Hills • Cypress Park • Del Rey • Downtown • Eagle Rock • East Gate Bel Air • East Hollywood • Echo Park • Edendale • El Sereno • Elysian Heights • Elysian Park • Elysian Valley • Encino • Exposition Park • Faircrest Height • Fairfax • Fashion District • Filipinotown • Financial District • Florence • Flower District • Franklin Hills • Gallery Row • Garvanza • Glassell Park • Gramercy Park • Granada Hills • Green Meadows • Griffith Park • Hancock Park • Harbor City • Harbor Gateway • Harvard Heights • Harvard Park • Hermon • Highland Park • Historic Core • Hollywood • Hollywood Hills • Holmby Hills • Hyde Park • Jefferson Park • Jewelry District • Kinney Heights • Koreatown • Lafayette Square • Lake Balboa • Lake View Terrace • Larchmont • Laurel Canyon • Leimart Park • Lincoln Heights • Little Armenia • Little Ethiopia • Little Tokyo • Los Feliz • Manchester Square • Mandeville Canyon • Marina Peninsula • Mar Vista • Melrose Hill • Mid-City • Mid-Wilshire • Miracle Mile • Mission Hills • Montecito Heights • Monterey Hills • Mount Olympus • Mount Washington • Nichols Canyon • NoHo Arts District • North Hills • North Hollywood • Northridge • North University Park • Old Bank District • Outpost Estates • Pacific Palisades • Pacoima • Palms • Panorama City • Park La Brea • Picfair Village • Pico Robertson • Pico-Union • Platinum Triangle • Playa del Rey • Playa Vista • Porter Ranch • Rancho Park • Reseda • Reynier Village • Rose Hills • Rustic Canyon • San Pedro • Santa Monica • Sawtelle • Shadow Hills • Sherman Oaks • Silver Lake • Solano Canyon • South Central • South Park • South Robertson Spaulding Square • Studio City • Sunland • Sun Valley • Tarzana • Thai Town • Toluca Lake • Toy District • Tujunga • University Hills • University Park • Valley Glen • Valley Village • Van Nuys • Venice • Vermont Knolls • Vermont-Slauson • Vermont Square • Vermont Vista • Victor Heights • Victoria Park • Village Green • Warehouse District • Warner Center • Watts • West Adams • West Hollywood • Westchester • Westdale • Western Heights • West Hills • Westlake • West Los Angeles • Westside Village • Westwood • Westwood Village • Whitley Heights • Wholesale District • Wilmington • Wilshire Center • Wilshire Park • Windsor Square • Winnetka • Woodland Hills • Yucca Corridor