Rent Control Cap raised to 4% in Los Angeles

Rent Control Cap raised to 4% in Los Angeles

Rental Property Investor · Los Angeles · Member since 2019 · 284 posts · 184 votes

In most recent years, rent increases have been capped at 3% in Los Angeles. Im about to renew lease agreements on my 4plex and found this article today that says Rent Control Cap is going up from 3% to 4% starting July 2019.

As a landlord in Rent Control area, im excited about this possibility.... But i cant confirm if this is true. Im hoping some of you Los Angeles property managers in this forum can chime in and confirm this? Here’s the article I found:

https://www.google.com/amp/s/la.curbed.com/platform/amp/2019/3/12/18260567/los-angeles-rent-control-increase

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  • Property Manager · Los Angeles, CA · Member since 2017 · 216 posts · 110 votes
    7y

    Alvin, you are correct. For RSO properties in Los Angeles, beginning in 07/01/19 to 06/30/19, the maximum allowable rent increase is 4%. This is basically because of inflation. And as previously allowed, you may add an additional 1% for gas and 1% for electricity if you supply those for the tenant. Please note, you may increase rent only once per 12 months. So if you took an increase in 08/01/18, you may take another rent increase as early as 08/01/19. 

  • Rental Property Investor · Los Angeles · Member since 2019 · 284 posts · 184 votes
    7y
    Originally posted by @Hubert Kim:

    Alvin, you are correct. For RSO properties in Los Angeles, beginning in 07/01/19 to 06/30/19, the maximum allowable rent increase is 4%. This is basically because of inflation. And as previously allowed, you may add an additional 1% for gas and 1% for electricity if you supply those for the tenant. Please note, you may increase rent only once per 12 months. So if you took an increase in 08/01/18, you may take another rent increase as early as 08/01/19. 

     Thank you for your response.    Can I add 1% for water?

  • Property Manager · Los Angeles, CA · Member since 2017 · 216 posts · 110 votes
    7y
    Originally posted by @Alvin Uy:
    Originally posted by @Hubert Kim:

    Alvin, you are correct. For RSO properties in Los Angeles, beginning in 07/01/19 to 06/30/19, the maximum allowable rent increase is 4%. This is basically because of inflation. And as previously allowed, you may add an additional 1% for gas and 1% for electricity if you supply those for the tenant. Please note, you may increase rent only once per 12 months. So if you took an increase in 08/01/18, you may take another rent increase as early as 08/01/19. 

     Thank you for your response.    Can I add 1% for water?

    Unfortunately, no. And if you are currently paying for water, you may not begin to charge unless you install individual water meters for existing tenants.

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