This LA RSO rent control guide is designed for owners of small apartment buildings (2-20 units). Understanding the Rent Stabilization Ordinance is essential for managing your property and planning for the future.
What Is the Los Angeles Rent Stabilization Ordinance (RSO)?
This LA RSO rent control guide covers the essentials. The Rent Stabilization Ordinance (RSO) applies to most multi-unit residential properties built before 1978 in the City of Los Angeles. It limits rent increases, regulates evictions, and sets rules for fees and relocations.
As a small owner, RSO determines:
- How often you can raise rents
- By how much
- What you must provide when you need to recover a unit or perform major work
2025–2026 Allowable Rent Increases
For the current period, LA has announced an allowable increase of 3%, with an additional 1% each if you pay for gas and/or electricity, up to a maximum of 5% in those cases.
Key points:
- Increases can only take effect once every 12 months per unit
- Written notice must be given at least 30 days in advance for increases under 10%
- Some buildings may also be affected by additional reforms that could cap hikes to 1–4% based on CPI going forward
How Rent Control Impacts Property Value
Rent control doesn’t automatically mean your building is “bad”—but it does change:
- Future income growth assumptions
- Buyer pool (sophisticated investors vs. casual buyers)
- The value of vacant units and remodel potential
Well-maintained RSO buildings with below-market rents can still command strong pricing when buyers see a clear, legal path to long-term upside.
Operating in Compliance as a Small Owner
To stay out of trouble:
- Keep a clean paper trail of rent increases and notices
- Understand “just cause” eviction rules before serving any notice
- Consult qualified legal counsel for complex tenant situations
Quick FAQs
Q: Can I raise rent more if I remodel a unit?
A: It depends on the jurisdiction and whether the work qualifies for certain pass-throughs or falls under local rehab rules. Get legal advice before assuming major upgrades automatically justify big increases.
Q: Is a non-RSO building more valuable?
A: Often, yes—because future rent growth is less restricted. But location, unit mix, and condition can sometimes make a well-located RSO asset more desirable than a poorly located non-RSO property.
Use this LA RSO rent control guide as a reference for your compliance and planning needs. If you have questions about how RSO affects your property’s value, reach out for a consultation.