Big Changes Coming to Rent Increases in LA County

On Tuesday, June 4th, the LA County Board of Supervisors made a close decision (3-2) to lower how much landlords can raise rent in the unincorporated parts of the county. Supervisors Barger and Hahn voted against it.

Here's what the new rules mean for landlords:

• Starting January 1, 2025, landlords can only increase rent by 60% of the Consumer Price Index (CPI), up to a maximum cap of 3% but no minimum floor, meaning the allowable rental increase could be lower than 3% if the CPI is low.
• For example, if the CPI is 4.275%, landlords can only raise rent by 2.57% (60% of 4.275%).
• If the CPI is 5% or higher, the rent increase can be the maximum 3%.
• If the CPI is very low, rent increases could be close to zero since there is no minimum increase anymore.
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Special rules apply to different types of landlords:

• Small landlords (fewer than 10 units): Can raise rent by an extra 1%, up to a maximum of 4%.
• Luxury landlords: Can add an extra 2%, with a maximum increase of 5%.
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Who are luxury landlords? These are owners of high-end rental properties, typically offering premium amenities and services. Their units are often in desirable locations and priced significantly above the average market rent. Examples include high-rise apartments with concierge services or upscale townhouses with extensive facilities.

Until the end of 2024, the current max rent increase of 4% still applies.

What Can You Do as a Landlord?

If you're a small landlord, this new motion could have serious impacts on your ability to cover rising costs like maintenance, taxes, and the new Rental Housing Habitability Program.

Here’s how you can act:

• Speak Out: Contact Supervisors Mitchell, Solis, and Horvath, who supported this motion, and express your concerns. Let them know how this amendment could make it hard for small landlords to stay in business.
• Demand a Study: Ask for a thorough economic cost study by qualified economists to assess the real impact of these changes on both landlords and tenants.
• Stay Informed: Follow updates on this motion and be prepared to voice your opinion when it comes up for a final vote.
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This motion isn’t finalized yet. It requires another vote when the amendment draft is ready, so there’s still a chance to influence the outcome.

Contact Information to:

• Supervisor Holly J. Mitchell (2nd District)
• Phone: (213) 974-2222
• Email:hollyjmitchell@bos.lacounty.gov
• Supervisor Hilda L. Solis (1st District)
• Phone: (213) 974-4111
• Email:firstdistrict@bos.lacounty.gov
• Supervisor Lindsey P. Horvath (3rd District)
• Phone: (213) 974-3333
• Email:ThirdDistrict@bos.lacounty.gov