UPDATE: RSO Properties in the City of Los Angeles: UP TO 6% Rental Increase as of 02/2024!
UPDATE! RSO Properties in the City of Los Angeles: Up to a 6% Rental Increase as of 02/2024 by: Shant Sherbetdjian | 12/04/2023
Dear Valued Investors,
We are thrilled to bring you the latest update regarding the Rent Stabilization Ordinance (RSO), set to take effect on February 1, 2024. In an effort to keep you well-informed, we are pleased to announce a significant change to the RSO guidelines that will impact landlords of RSO properties. Starting February 1, 2024, landlords will be permitted to implement permissible rent increases, with the maximum allowable increase being raised to 6%.
Let's break down the details of this exciting development:
Annual Allowable Rent Increase:
Up to 6%Under the updated RSO guidelines, the base rental increase is set at 4%. Landlords can now add an additional 1% each if they provide mastered metered gas and mastered metered electrical services. This flexibility allows for a total allowable increase of up to 6%.
Effective Period: February 1, 2024, through June 30, 2024
This adjustment applies to rent increases taking place between February 1, 2024, and June 30, 2024. We encourage landlords to take note of this period for planning and implementation.
Providing Notices: Immediate Action Allowed
Landlords may commence providing notices to tenants effective immediately. However, it is crucial to ensure that the date of the rental increase is not before 02/01/2024.
No Banking or Retroactive Increases
To maintain fairness and transparency, it's essential to highlight that no banking or retroactive rent increases will be permitted.
Written Notice Requirement: 30 Days in Advance
To comply with the ordinance, landlords are required to furnish tenants with a written notice at least 30 days before implementing any rent increases. This notice should comprehensively outline the new rental amount, effective date, and any applicable additional charges for gas and water services.
Stay Connected with Us
Our commitment to keeping our investors well-informed remains steadfast. Should you have any questions or need clarification, please feel free to reach out to Shant Sherbetdjian and his dedicated staff. They are available at your convenience and eager to assist you.
Shant Sherbetdjian
Southern California Apartment Group
