Los Angeles County Allowable Annual Rent Increase for 2025
Los Angeles County Allowable Annual Rent Increase for 2025
On November 6, 2024, the Los Angeles County Board of Supervisors approved an amendment to Chapter 8.52 of the Rent Stabilization and Tenant Protection Ordinance, limiting the annual increase of rent, effective January 1, 2025, to sixty percent (60%) of the percentage change in the average Consumer Price Index (CPI) over the previous twelve-month period not to exceed a maximum rent increase of just three percent (3%). These new rent increase limits apply to all multifamily properties built on or before February 1, 1995, located within the unincorporated areas of Los Angeles County that are covered by the Rent Stabilization and Tenant Protection Ordinance (RSTPO).
Smaller owners (“Small Property Landlords”), generally with 10 or fewer units within the County, are allowed an additional 1% increase each year over and above the 3% maximum allowable increase, or up to a maximum of 4%. “Small Property Landlords” under the Los Angeles County Rent Stabilization and Tenant Protection Ordinance must submit a Small Property Landlord Self-Certification to DCBA annually and include a disclosure in the rent increase notice to tenants stating that they meet the Small Property Landlord Requirements. According to the County’s website:
- “Small Property Landlords”: (i) Is qualified for and receives a Homeowners' Property Tax Exemption for the property on which the subject rental unit is located; (ii) Has an ownership interest or beneficial interest in or controls only one (1) rental property with no more than ten (10) rental units; or (iii) Has an ownership interest or beneficial interest in or controls no more than three (3) rental properties with a combined total of no more than ten (10) Rental Units, including any rental properties outside of Los Angeles County.
Luxury unit owners, defined as properties with 25 or more units per parcel receiving $4,000 or more in monthly rent, will be allowed to receive an additional 2% increase over and above the 3% maximum allowable increase, or up to a maximum of 5%. According to the County’s website:
- “Luxury Unit”: (i) Has two (2) bedrooms or less; (ii) Is located within a single structure that contains at least twenty-five (25) or more Rental Units; and (iii) As of September 11, 2018, landlord received at least four thousand dollars ($4,000) per month in rent
The CPI is to be based on a 12-month average ending in September 2024. The chart below summarizes the allowable rent increases as published by Los Angeles County on its website at https://dcba.lacounty.gov/rentstabilizationprogram.
Founded in 1917, the Apartment Association of Greater Los Angeles (AAGLA) is Southern California's premier trade association for rental housing providers, delivering essential member support through aggressive legislative advocacy and critical local regulatory updates. Serving Ventura, Los Angeles, and San Bernardino counties, AAGLA empowers its 10,000+ members through expert educational resources and direct access to experienced operational advisors. With influence across nearly 200 local jurisdictions and a comprehensive library of management tools, AAGLA continues its century-long mission of fostering professionalism and excellence in the rental housing industry.