If you’re a Los Angeles landlord, you might be alarmed at how easy it is to make a legal mistake. 

Those legal mistakes can be expensive. Not only will they cost you money, they’ll also cost you a lot of your time and potentially, your reputation. 

In our experience as Los Angeles property managers, it seems that most landlords and rental property owners make those mistakes simply because they’re not aware of the laws. California takes tenant protections quite seriously. Los Angeles has its own set of rental regulations aimed at protecting tenants and ensuring a fair and equitable rental experience for everyone. 

We’ve put together this comprehensive guide for landlords who may be unsure of what the Los Angeles rental regulations are, and how they pertain to the properties they’re renting out. 

Here’s an overview of what you need to know, and if you have any questions, please don’t hesitate to reach out for help. When it comes to best practices as a landlord, it’s always better to be proactive than reactive.

Rent Control in Los Angeles

Probably the most important Los Angeles rental law you need to understand is the Rent Stabilization Ordinance (RSO). 

First, we need to know if your property falls under this ordinance. Generally, the RSO applies to rental properties that were first built on or before October 1, 1978, as well as any properties that might be considered replacement units under LAMC Section 151.28 and if any of the following:

• Apartment
• Condominium
• Townhome
• Duplex
• Two or more single-family dwelling units on the same parcel
• Rooms in a hotel, motel, rooming house, or boarding house occupied by the same tenant for more than 30 consecutive days
• Residential unit(s) attached to a commercial building
• Accessory Dwelling Unit (ADU)
• Junior Accessory Dwelling Unit (JADU)

Mobile homes and recreational vehicles in mobile home parks are also covered under the RSO.

As you may have noticed, single-family homes on their own plot of land are not included in this law. 

When your apartment building or your duplex has a certificate of occupancy that’s after October 1, 1978, you are likely exempt from the city rent control ordinance. However, you may still find yourself covered by The Tenant Protection Act of 2019, which brought statewide rent control to California. Under that law, city ordinances like the RSO in Los Angeles take precedence, but any rental homes not covered by local rent control laws are still subject to the state law. 

The local rent control laws restrict how often and by how much you can raise the rent. This law also requires you to register your rental property with the city. 

You’re permitted to raise the rent once every 12 months. How much can you raise the rent? That depends on the year and the Consumer Price Index (CPI). 

• As of February 1, 2024, landlords in Los Angeles can raise rent for properties subject to the RSO by up to 4% through June 30, 2024. Landlords can also add an additional 1% if they provide gas or electricity to the tenant.
• The amount remains the same from July 1, 2024 through June 30, 2025. You can raise the rent by 4%, and 5% if you provide utilities.

Make sure you know whether your property is covered by the Los Angeles RSO or the statewide rent control laws.

Security Deposits for LA Rental Homes

If you have not been keeping up with legal changes in the state of California, you may not know that the security deposit laws have changed. Previously, you knew that you could charge up to the equivalent of two months’ rent as your security deposit for an unfurnished rental property. For furnished properties, you could charge the equivalent of three months’ rent. 

This limit has changed, thanks to Assembly Bill 12. It went into effect on July 1, 2024, and not only do you have to change your security deposit policy, but you also have to change your lease agreement to reflect this new restriction, if it applies to you. 

Landlords are now only permitted to charge the equivalent of one month’s rent for a security deposit, whether their property is furnished or unfurnished. 

There are, of course, exceptions. 

• Small Landlord Exception

If you’re an independent landlord with no more than two rental properties and four rental units within those two properties, you can continue charging up to two months’ rent as a security deposit. 

• Service Member Tenants

If you’re renting a property to members of the military, you have different security deposit restrictions because those residents are eligible for lower security deposit amounts.

Know your tenants, understand your rights, and have an educated idea of how you’re permitted to approach security deposits for your LA rental property.

While we’re on the subject of security deposits, don’t forget the other requirements and regulations that come with the deposit. You’ll have 21 days to return the deposit to your departing tenants. If you withhold any part of that deposit, you’ll need to provide an itemized list of what you spend the deposit on, and why. You’re permitted to use the security deposit to pay for property damage, cleaning, and any unpaid rent or utility costs. You cannot use the deposit to make upgrades to take care of normal wear and tear issues at your property.

Evictions in Los Angeles

We went through a long period of eviction protections and moratoriums during and just after the worst of the COVID pandemic. Rental payments are now being collected as normal, and landlords in Los Angeles are free to pursue evictions as necessary. However, protections are in place, and you’ll need to have a just cause in order to terminate the lease agreement and remove your tenant from the property.

Just cause evictions are also called at-fault evictions, meaning the tenant has done or not done something to justify the legal action. In Los Angeles, these reasons include: 

• Failure to pay rent
• Failure to fix or address a violation of the rental agreement
• Creating a nuisance that causes problems for neighbors
• Causing damage to the rental unit
• Criminal activity in the rental home
• Failure to renew a similar rental agreement
• Failure to provide the landlord with reasonable access to the rental unit
• The person at the end of the lease term is a subtenant not approved by the landlord

There are also no-fault evictions, which are still permitted, but will come with a penalty for the landlord. You’ll have to pay a relocation fee to the tenant you are removing from your property. No-fault evictions that are permitted under the local Los Angeles rental laws include:

• You or an immediate family member will move into the rental unit (state laws now require you to do this within 90 days of the tenant moving out, and to remain in residence for at least one year).
• A resident manager will move into the rental unit
• Demolition and permanent removal of the property from the rental market
• Government order
• Conversion to affordable housing

These no-fault evictions require that you pay relocation assistance, which is typically the equivalent of one month’s rent.

Make sure you follow all local and state eviction laws when you begin the process. You’ll have to serve a notice, and if your property is covered by the Los Angeles RSO, you’ll have to copy the Los Angeles Housing Department on the eviction notice. 

Recent Short-Term Rental Law

A lot of landlords in Los Angeles are renting their homes out as short-term properties. This means you’ll rent out a full home or a room in your home to tenants for fewer than 30 days. While this can be quite lucrative, it also comes with a lot of risk and a lot of extra regulations. 

Make sure you have a permit and that you’ve registered your property. You’ll have to pay a Transient Occupancy Tax (TOT) and comply with reporting and payment processes. The current rate in Los Angeles stands at 14% of the rent charged to the guest. 

There are additional rules and requirements specific to short-term rentals, including a cap on how many nights in a year you can actually rent out the property on a short-term basis. The nightly rate can be attractive, but all these laws and the ever-changing regulations might mean that your chances of being more profitable as a landlord increase when you have a long-term residential lease in place. 

These are the most comprehensive and recent laws that you need to know as a landlord in Los Angeles. This guide by no means covers all the legal requirements for rental property owners. We’d love to talk with you more about things like habitability standards, a tenant’s right to privacy versus your right to inspect, and the nuances between allowing pets, service animals, and emotional support animals. 

Let’s discuss the particular legal challenges that you face as a rental property owner. Contact us at El Camino Property Management, and protect yourself and your rental property in Los Angeles. 

Please note this information is deemed reliable, but not guaranteed. Please consult appropriate professionals for specific situations.