City of Los Angeles Updates Allowable Rent Increases Effective July 1, 2025

City of Los Angeles Updates Allowable Rent Increases Effective July 1, 2025

Contributed by the Davidovich Stone Law Group

The City of Los Angeles has confirmed the allowable rent adjustment for rent-controlled units covered by the Rent Stabilization Ordinance (RSO). This applies to most residential properties built on or before October 1, 1978, and located within Los Angeles city limits. For the period covering July 1, 2025, through June 30, 2026, the following adjustments are permitted:

• Base rent increase: 3.0%
• An additional 1% for each of the electricity and/or gas utilities if the housing provider pays for either or both utilities on behalf of tenants.

Under California law, landlords must issue written notice at least 30 days in advance for any rent increase under 10%.

Editor’s Note: Although this allowable rent increase has been published on the Los Angeles Housing Department website, it may not be entirely final or made permanent. We believe that the City of Los Angeles’ Housing and Homelessness Committee will meet to discuss modifications to the existing RSO rent increase formula, which may cause housing providers to have to “walk-back” noticed increases. We will keep our members appraised of the latest developments.