Los Angeles County Rent Cap Proposal: “Attention los angeles landlords”

The Los Angeles County Board of Supervisors will soon review a proposal to limit rent increases in unincorporated areas, generating significant opposition from the California Apartment Association (CAA).

Proposed Rent Cap Details

• Initiated by: Supervisor Holly Mitchell

• Proposed Cap: 3% or 60% of the Consumer Price Index (CPI), whichever is lower

• Current Formula: Limits increases to the lower of 8% or 100% of CPI

Opposition from CAA

• Concerns:

  • Described as an extreme form of price control

  • Could worsen the housing crisis

  • May deter investment in rental properties

  • Increases operational challenges for landlords amidst rising costs and inflation [CAA Net].

Impact on Existing Properties

• Affected Units: Multifamily housing built before February 1, 1995, in unincorporated Los Angeles County

Additional Provisions for Small Property Owners

• Increased Allowance: Small property owners can increase rent by an additional 1% annually above the standard cap until December 31, 2026, if they meet specific criteria

Geographical Impact

• Affected Areas: Approximately 51,700 rental units across 10,900 properties, mainly in South Los Angeles, East Los Angeles, and the San Gabriel Valley

Criticism of the LA County Report

• The report doesn't justify the stringent measures

• Fails to consider financial burdens on landlords

• Ignores increased operating costs, including insurance, maintenance, and inflation

Broader Implications

• Potential Influence: The new policy could affect local rent control laws countywide

Key Takeaways for Landlords and Property Owners

• Prepare for Change: Understand the potential financial impact

• Stay Informed: Keep up with the latest Los Angeles apartment developments

• Advocate: Join industry associations like CAA to voice your concerns

For more details on rent increases and control policies in Los Angeles, visit DCBA.