Feb 1 2020 38376 1

Dated: 02/01/2020

Views: 17

A guide to rent control in Los Angeles

Los Angeles rents are among the highest in the nation, and withbuying out of reachfor most residents, millions of Angelinos are stuck paying for high-priced apartments.

But rent control laws at the local and state level can make the cost of some of those units more manageable, particularly over time.

Several cities in Los Angeles County have rent control regulations on the books, and a new state law caps annual rent hikes for apartment-dwellers across California. These measures also provide some protection from eviction and cash payments in the event a renter is forced to move out of their apartment.

The rules can be confusing, but they affect a huge number of residents. In the city of Los Angeles alone, renters live in more than 600,000 apartments spread across 118,000 properties, according to the city’sHousing and Community Investment Department.

Because local laws are complex, and many renters may not fully understand what benefits of rental regulations they might be entitled to, below are the most essential things LA residents need to know about rent control rules in the area.

How does rent control work?

The rules vary by city, but all ordinances put a cap on annual rent increases for eligible units. In the city of Los Angeles, that means renters in apartments covered by the ordinanceshould only see their rents rise between 3 and 8 percent annually (the percentage is tied to theconsumer price index; this year it’s4%

That’s actually far less complicated than how allowable rent increases are determined in Santa Monica. There, caps on rent hikes are equal to 75 percent of the annual inflation rate—and a rent control board can further limit maximum rent increases by dollar amount. The latter figure is determined through a formula that averages maximum increases for some of the city’s pricier units under rent control.

In cities without rent control laws on the books, the state rules apply. Under those parameters, annual rent hikes are limited to 5 percent, plus the rate of inflation (though the total increase allowed maxes out at 10 percent). That means that if the rate of inflationis 3 percent in Los Angeles County, a landlord could raise a tenant’s rent no more than 8 percent.

Most apartments (but not single-family homes and condos)in California built before 1995 are subject to the state’s rent cap. But if you live inSanta Monica,West Hollywood,Beverly Hills,Inglewood, thecity of Los Angeles, orUnincorporated Los Angeles County, the maximum rent hike you get each year could be smaller.

A temporary rent freeze is also now in effect inCulver City. It limits yearly rent hikes to 3 percent, but will expire in August if not extended.

Whether your apartment is covered by rent control depends mainly on what type of housing it is and when it was built. Single-family homes are almost never subject to rent control (though they are in rare cases in Santa Monica and West Hollywood); duplexes, triplexes, and apartment buildings, on the other hand, usually are—depending on when they were built.

In the city of Los Angeles, only buildings built and occupied before October 1, 1978 are subject to the city’s rent-control restrictions. These dates vary from city to city and usually have to do with when rent control laws were passed. In Santa Monica, it’s April 10, 1979; in West Hollywood, it’s July 1, 1979; and in Beverly Hills, Culver City,Inglewood, and Unincorporated Los Angeles, it’s February 1, 1995.

February 1, 1995 is also the key date for California’s rent control law. TheCosta Hawkins Rental Housing Act, which sets limits on rent control laws statewide, mandates that no units built after this date be subject to caps on annual rent increases.

Amid tenant complaints about untenable rent increases in the late 1970s, the Los Angeles City Council temporarily froze rents in place, starting on October 1, 1978. During that time, the council worked out the details of the city’s currentRent Stabilization Ordinance, which applies to buildings occupied before the freeze began.

When it went into effect, Costa Hawkins, the state law, locked in place many local rent control requirements, so that Los Angeles and other cities are unable to impose rent caps on buildings constructed more recently.

When a renter moves out of an apartment under rent control, landlords are allowed to raise the price to whatever amount they see fit. That means that unless your friend or family member is already on the lease, you can’t pass down a sweet deal when you decide to find a new place.

That rule is another important element of Costa Hawkins. Critics of the bill argue this part of the lawcosts LA valuable units of affordable housing, since apartments offered at affordable prices generally become far less affordable once a new tenant moves in. Supporters of the law maintain that allowing units to reset to market rate gives landlords a necessary incentive to keep their buildings in good shape to attract future tenants paying higher prices.

A landlord planning to move into an apartment or offer it to a family member can also ask a current tenant to leave.

The only other common cause for eviction is through California’sEllis Act, which allows landlords to mass-evict tenants when taking a property off the rental market. That could mean tearing the building down, for instance, or redeveloping it as for-sale condos.

In these cases, landlords are required to pay relocation fees to help tenants find and move into a new place. Fees in the city of Los Angeles range from $8,500 to $21,200, depending on how long tenants have lived in the building, how old they are, and how much money they earn.

Latest Blog Posts

Feb 1 2020 38376 2

Mortgage Rates May Go Even Lower in 2020!Homebuyers can rest assured they’ll still get agreat deal on a mortgagethis year, even if they’re paying a high price for the actual home.In a

Read More

Feb 1 2020 38376 1

A guide to rent control in Los AngelesLos Angeles rents are among the highest in the nation, and withbuying out of reachfor most residents, millions of Angelinos are stuck paying for high-priced

Read More

Jan 3 2020 38376 2

Housing Outlook for 2020:  A good year to buy!Waiting for a good time to get in on thehousing market? Experts forecast that it’s likely to be another banner year in 2020.Mat Ishbia, CEO

Read More

Jan 3 2020 38376 1

Competition for housing is so high, the spring market is starting now!Spring has historically been the busiest buying season, but as competition for homes heats up across the country, January is

Read More