Big Changes Coming to L.A. Rent Control: What Landlords Need to Know Before July 1st 2025
Big Changes Coming to L.A. Rent Control: What Landlords Need to Know Before July 1st By Shant Sherbetdjian
If you own property subject to the City of Los Angeles Rent Stabilization Ordinance (RSO), now is the time to act.
Beginning July 1, 2025, the allowable annual rent increase under L.A.’s RSO will be capped at 3%, with an additional 1% each if landlords pay for gas and electricity—for a potential maximum of 5%. But there’s a catch: the City Council is actively considering reducing that cap to just 2%, with a final vote expected before their July 2 recess.
What does this mean for you?
- If you haven’t issued a rent increase notice for the current period (June 2024–June 2025), the window to do so closes after July 1, 2025
- If the City votes to reduce the increase to 2%, that lower cap will impact all future rent adjustments under RSO rules.
This is an important talking point for landlords who are feeling the squeeze of increasing regulations. If you’ve been on the fence about selling an RSO-regulated building, this shift could be a key indicator that now is the time to explore your options.
Whether it’s a valuation, an exit strategy, or a 1031 exchange into a less restrictive market, we’re here to help you navigate the next steps.
📞 Let’s talk before July 1st. Don’t miss the window to make an informed decision.
Your trusted apartment specialist,
Shant Sherbetdjian
Team Southern California Apartment Group
