Los Angeles Rent Control Expanded - Real Cap Daily #32

The City of Los Angeles is continuing its campaign to punish landlords and protect tenants. The new rules reach past what is currently on the books.

Hello, my name is Dennis Maynard, CCIM. I’m a real estate broker here in Los Angeles. Please don’t forget to like subscribe and follow.

The City of Los Angeles has recently expanded its Renter Protections. There are four updates we are concerned with. 

The first update is the expansion of “just-cause” evictions. The State of California outlined in AB-1482 that landlords cannot evict unless there is unpaid rent, documented violations, nuisance, owner move-ins, or the Ellis Act. The City expanded this to include single-family homes and apartment buildings built after 1978 which were previously exempt.

Second, the amount owed by a tenant would have to exceed more than one months “fair market rent” as determined by HUD. Only then would a landlord be able to pursue eviction over non-payment of rent.

Number Three. Buildings built within the last 15 years and single family homes that are not capped by the states 10% rental increase limit are now covered in the City of Los Angeles. Any tenant that moves out due to a more than 10% increase may seek 3 months rent and moving expenses.

Keep in mind that units built prior to 1978, RSO units, may not have any rental increases till February 2024.

Number Four. Unauthorized roommates and pets can remain until January 2024.

The inclusion of new construction and single family houses in these ordinances is over reaching. We are in a housing crisis, and the City is actually discouraging new apartment development and kicking homeowners who can’t sell but decide to lease instead. Before you say oh poor tenants, remember we are talking about rental rates typically over $3000 per month. Not the affordable housing which already has guidelines in place. It is another example of LA seeking to control property owners.

What are your thoughts on the new regulations? Do you think that landlords should continue to foot the bill for those who refuse to pay rent? What about the lack of rental increases for 3 years? Do you think that is a taking by the government? Should landlords be able to recapture their losses by deducting it from property taxes?

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