The Los Angeles City Council’s housing and homelessness committee passed an amended motion Wednesday to lower rent increases from 7% to 4%.
- Councilmember Hugo Soto-Martinez originally suggested a six-month extension of a pandemic-era ban on rent increases which would have pushed the effective date of allowable rent increases for RSO properties from February 1, 2024 to August 1, 2024.
- Soto-Martinez’s motion called for a continued pause on rent increases for units covered by the 1979 Rent Stabilization Ordinance, which limits the allowable rent increase for units built on or before Oct. 1, 1978. Under the ordinance, rent increases are tied to the Consumer Price Index – a measure of inflation – and have historically been in the 3-4% range with a cap at 8%.
- Instead, the committee passed an amended motion for lower rent increases from 7% to 4%, rather than delaying or completely banning increases. If passed by the entire city council, the amended motion would go into effect in February 2024.
4 replies on “Update to Los Angeles Allowable Rent Increase for 2024”
This is really not fair to the small mom and pop owners who invested in property to live their senior years in dignity. Costs have gone up considerably for repair and maintenance. Us senior owners have patiently waited and accepted the imposition in the past few years. The extra 3 percent maximum increase of 7 percent total is fair and reasonable and meaningful to owners. It will not impact housing or result in homeless .
As a renter of 30 years in Westchester my building went from an individual owner of many years (who I was personally friends with) to ultimately a LARGE L.L.C. with multiplied millions in Assets from rentals they have gobbled up. They were averaging a 3% yearly increase which has been manageable and for the last nearly 3 years no rent increase. I am not looking forward to the removal of rent hike moratorium but do understand the need of investors to make their investments pay off. It is sad to me that many mom-and pop rentals have been gobbled up by the large LLC’s and if the mom and pops can’t make a go of it, more and more rentals will end up in the Large Corporate portfolios which I believe will be a disaster for livable housing at affordable prices. I have no clue about Real Estate and Renter’s laws, but it would seem better to adjust the rent increases based on Private Owner vs Large Corporation, Income /expenses at smaller levels vs the multi millions of Big Investors rather than an across the board falt restriction which hinders the smaller owners but not the LLC’s. IDk if that is any kind of solution..but it seems to me ) that the rate increase could be more based on Size of ownership/ Private or Large Number of Units, and Portfolio incomes. I guess saying that the smaller investors should be allowed a higher increase and the Goliaths have the increase at the lower level. IDK, The only thing I know about REAL ESTATE, is I WISH I OWNED SOME!
Well said. Yes, the ‘institutionalization’ of real estate has been happening for years. Mom and Pop landlords have been and are being systematically squeezed out of the business.
I am a “mom & pop” owner of a Venice duplex for 30 years. I have a tenant who has lived in one of my units for going on 19 years. I have NEVER raised the rent and now with all the rising costs I find my benevolence has come to cause me great harm. I would like to sell my NEST EGG but now because tenant is “protective” and does not want to leave – the buyers are not interested UNLESS I can deliver my duplex empty. HOW is this possible that the TENANT controls my future?
This is a WARNING to ALL “mom & pop” owners in rent stabilized properties – IF you have a tenant who has lived in your property more than 10 years AND is over I believe it’s 62 years old – YOU are in trouble. Moreover IF you have been sympathetic and NOT raised the rent – WAKE UP and realize the jeopardy involved. IF I had raised the rent on my tenant/friend the small amount allowed during the years it WAS allowed it would amount to over $100,000. That is what my tenant SAVED/ what I forfeited. Now I am being held up by a tenant I treated MORE than fairly and she has become a roadblock to my being able to sell MY property. I might add I am a SENIOR, Ade 77 and my nest egg is in trouble. It seems the least the CITY could do is allow us (the landlords) to RAISE our rents to an amount that MATCH normal rents in the neighborhood! Three per cent is NOT enough to even make a difference. I am not a corporation. I am not an LLC. I am a landlord of a duplex and I would like to be in charge of MY property NOT the tenant.
It’s wonderful that the BIG landlords, the corporations will be getting these grants for unpaid rent BUT what about the little guys, the “mom & pop” landlords ??
My 2 tenants HAVE paid their rent, sometimes not on time. yes they have paid BUT they are paying very LOW rent, a rate they will never find anywhere. IF anyone knows of grants for little landlords to make up for the Covid moratorium of rent raises – PLEASE let me know.