Los Angeles City Rent Stabilization Ordinance

The Los Angeles City Rent Stabilization Ordinance (LARSO) is a comprehensive rent control and tenant protection law codified in the Los Angeles Municipal Code. It aims to prevent excessive rent increases while ensuring landlords can still receive a reasonable return on their property.

Covered Properties and Exemptions (Rent Control)

LARSO's rent control provisions limit how much a landlord can raise the rent.

Covered: Residential rental units in structures with a Certificate of Occupancy issued on or before September 30, 1978 (i.e., built before October 1, 1978).

Exempt: 

  • New Construction: Units with a Certificate of Occupancy issued after October 1, 1978.

  • Single-Family Homes/Condominiums: Generally exempt under the state Costa-Hawkins Act, though some exceptions apply (e.g., if owned by a corporation).

  • Luxury Housing: Units exceeding statutory thresholds for high-end rents.

Important Note: The Just Cause for Eviction protections of LARSO, or the city's separate Just Cause Ordinance (JCO), may apply even to properties that are exempt from the rent cap.

ALLOWABLE ANNUAL RENT INCREASES

LARSO establishes a maximum allowable annual rent increase based on the Consumer Price Index (CPI), as determined by the Los Angeles Housing Department (LAHD).

  • Maximum Increase: The annual rent increase is limited to a percentage based on the CPI, typically ranging from 3% to 8% for properties built before October 1, 1978.

  • Utility Pass-Throughs: Landlords can increase the rent by an additional 1% for gas and 1% for electric service if they pay for these utilities for the tenant's dwelling unit.

  • Capital Improvement: Landlords may be allowed to petition the City for a temporary rent increase to cover the cost of qualified major capital improvements.

Vacancy Decontrol: Under the state's Costa-Hawkins Act, when a tenant voluntarily vacates a covered unit, the landlord is generally allowed to set the initial rent for the new tenant at a market rate (vacancy decontrol). However, the unit remains subject to LARSO's annual increase limits for subsequent tenants.

JUST CAUSE FOR EVICTION PROTECTIONS

LARSO mandates that a landlord may only terminate a tenancy for an enumerated just cause reason if the tenant has occupied the unit for 12 months or more.

  1. At-Fault Evictions (Tenant is at fault):

  • Failure to pay rent.

  • Violation of a material term of the lease.

  • Nuisance or illegal use of the unit.

  • Refusal to give the landlord reasonable access.

  1. No-Fault Evictions (Tenant is not at fault):

  • Owner Occupancy/Relative Move-In: The landlord or a close family member intends to move into the unit as their primary residence (subject to strict rules and limitations on comparable units).

  • Ellis Act Withdrawal: The landlord seeks in good faith to permanently withdraw the property from the rental market.

  • Demolition or Substantial Remodel: The landlord plans to demolish or substantially remodel the unit and has secured all necessary permits.

  • Government Order: The landlord is complying with an order by a government agency to vacate the unit.

Relocation Assistance must be paid to tenants in no-fault evictions. The amount is determined by the size of the unit and the status of the tenant (e.g., elderly, disabled, or minor children present).

Landlord Compliance Requirements

  • Registration: Landlords must annually register all covered rental units with the LAHD. Failure to obtain and serve a proper registration statement on the tenant is a complete defense for the tenant in any unlawful detainer (eviction) lawsuit.

  • Rent Withholding: A tenant may withhold rent until the landlord has fully complied with the registration and posting requirements of the ordinance. The tenant must pay the withheld back rent once the landlord cures the violation.


Peregrine Legal Group, PC, represents tenants throughout Los Angeles City. Contact us to schedule a consultation.



City Website: http://housing.lacity.gov/residents/what-is-covered-under-the-rso 

Disclaimer: This information is for general knowledge only and is not legal advice. For specific legal issues, you should consult with a qualified attorney or contact the Pasadena Rent Stabilization Department.