Los Angeles County Rent Control

46 Replies | Los Angeles County, California

As many of you know, Proposition 10 is on the ballot for November, and if passed, it would repeal Costa-Hawkins which significantly prevents individual cities from imposing rent control.  It is shaping up to be a major battle over the next couple of months.

For those in Los Angeles County, there are other attempts at rent control in motion as well.  The LAC Board of Supervisors was slated to vote on a motion on a "temporary" 3% annual increase.  As of this morning, the vote has been postponed to a future meeting, but it is important for those concerned about this issue to contact the supervisors in the districts where they own property to make their opinions known.

It is unincorporated LA county, cities would do their own actions.

I don't know when the new date will be.  Their agendas are at http://bos.lacounty.gov/Board-Meeting/Board-Agendas but I think the sponsor will be revisiting it before bringing it to a new meeting.

I am surprised that CA investors are so oblivious...rent control is coming to ALL LA and beyond in November - done deal. Repeal of Costa -Hawkins is just a matter of time and homeowners continue to be ignorant while tenant organizations work day and night to get us!

Every sane investor or homeowner should at least vote NO if not donate. 

Here is the link https://noprop10.org/

@Julia Fergo I intend to vote no but rent control will not be statewide in November just the possibility for expansion where it already is (or would be anyway).  Cities that want to implement rent control could do so already, but most don't.  Also rent control would just mean that rents go up every year instead of staying stable over time (it hurts lower unit landlords who don't keep pace with the market the most)

@Aaron K. ..the moment it comes through in November with the pace politicians in CA run to please their voters who , let's face it majority are tenants, the rent control will:  a/ expend to non-rent control areas like Inglewood, Hawthorne and other b/ will expend to Single family houses and condos (not rent control today thanks Costa-Hawkins) 3/ the cancelation of Costa Hawkins would mean (that will take probably few months for tenant-voters to convince the politicians)  that even after the tenant moves out you the landlord can not raise the rent to market price..meaning if the tenant pays 1000 and today the market rent for this property is 2000 you can do nothing but continue to rent 1000+3% which is not enough to cover your yearly maintenance cost as a landlord.. and so your property value would be proportional for this rent and you can never get the value increase as you should...this is the dark picture but very real..

@Julia Fergo  

If it passes I see more people that rent their single family homes deciding to sell since they won’t want to be restricted by rent control . This will take more rental housing supply off the market . 

Rent control is a bad policy and they are doubling down on it . Good example of why CA is always considered one of the least business friendly states. 

@Joseph M. you are 100% correct.

Here is the link and this is exactly what worries me: the maintenance will 'eat' our profits and we will have to sell with  losses.  A new generation CA TENANT KNOWS they can cause you so much troubles you will pay just to have a piece of mind ( speaking from experience)..! what does it mean to our businesses? I see all kinds of posts on this website but almost nothing about rent control. I think this should be the MAIN subject here. As a member of California Apartment owners association (CAA) and Apartment Owners association (AOA) and being aware of this extreme measure I'd say I am surprised I don't see hundreds people reply to this post!

https://caanet.org/signatures-submitted-to-qualify...

Learn more about this subject here: And please send to your friends and re-post!

NoHousingFreeze.org.

  •  Rent control reduces property values on impacted properties by up to 20 percent.
  • if passed, the Housing Freeze cannot easily be changed without another ballot measure.
  • Allows rent caps on properties to be locked in place forever, discouraging new housing and encouraging condo conversions
  • Opens the door for rent control on single family homes and new construction.

There is more!!! Everybody has to get out of their little bubble and vote NO on prop 10 ..LOL I know I sound very passionate about this subject but so should you, after all it is about our money and profits..:)

Rent control needs to be fought at every step - the state, the county, the city.  

Look, tenants love the sound of rent control because they think rents are high and they are - the cost of living is high, particularly in desirable areas.  Rent control sounds like a good solution, but tenants don't get that it isn't just benefit for them / cost by landlord - in the long run, it reduces their quality of housing, choice of housing, and mobility.  New renters get the short straw, because availability gets tighter and tighter.

Please do more than just voting no on 10.  Educate others you know, educate your tenants.

Thank you all for discussing this. I think every single one of us should be concerned about this, and let people know what is going on. This is not just a battle that the big multifamily owners here in LA will have to fight - if anything, those folks are better poised to weather the storm. The heat will come down on the single family investors, especially in areas like Hawthorne, Inglewood, Long Beach etc.

I don't like to do politics on here, but we all know that promising voters something (like lower rental costs) will get votes, even if it is not the reality of the situation. I lived in NYC from 2011 to 2016, with plenty of rent control everywhere, and it remains the most expensive market in the country, with vacancy rates very low. But the supporters of this measure won't mention that. 

I don't own rentals in L.A , but as a native of L.A and living here I've seen that rent control is a bad policy. We have some of the most unaffordable market rents . Rent control also benefits some that earn high incomes and have just lived in their apartments for a long time which doesn't seem too fair. Many of these buildings in L.A are really rundown and they are eyesores even in nice areas because either the landlords don't have the money to fix them up or they have no incentive too. 

If I did own mutli family rental property in L.A , I'd  be looking into how it could be redeveloped and getting out of the rental business in L.A too much uncertainty and anti business/landlord mentality with the current regime in L.A and CA.

Oakland for example wants to put an additional tax on landlords , who knows if that great idea will be coming to L.A soon.


@Julia Fergo , thanks for the info and links , I joined the effort to stop Prop 10.

Originally posted by @Shiva Bhaskar :

Thank you all for discussing this. I think every single one of us should be concerned about this, and let people know what is going on. This is not just a battle that the big multifamily owners here in LA will have to fight - if anything, those folks are better poised to weather the storm. The heat will come down on the single family investors, especially in areas like Hawthorne, Inglewood, Long Beach etc.

I don't like to do politics on here, but we all know that promising voters something (like lower rental costs) will get votes, even if it is not the reality of the situation. I lived in NYC from 2011 to 2016, with plenty of rent control everywhere, and it remains the most expensive market in the country, with vacancy rates very low. But the supporters of this measure won't mention that. 

 Yeah that is true. L.A is home to a lot of mom and pop landlords. I've noticed the same thing in the minimum wage debate too...a lot of people talking about multinational companies but it's the small 'mom and pop' businesses that will be affected. They can't afford the automation. 

What i've seen in L.A is the mayor and local politicians are constantly promises "affordable housing...coming soon" ...it's the carrot they use to get people to vote for them...even though they know getting one of those affordable units will be like winning a lottery just as it always has been. False promises. 

Disappointing for sure how things are being run here. Bad policies left and right.

@Joseph M. 100% agreed and being a 'small' landlord in LA for a few years now, I  got to learn very soon how dangerous it is when your business is depended on 'tenant mercy' .... because it is just a matter of them doing a little research online or meet with their free attorney (paid with taxpayer money) and they are confident they can stay 3 months  free-of-rent and cause their landlord so much trouble he will pay them thousands and thousands dollars just to have this all go away... and many agree to seal their eviction records too..so now there are thousands of prior evicted tenants whose records are sealed , they are familiar with the process and know how to work the system!

Thanks for sharing this Julia, this is just another reason for me to take my capital elsewhere!

I live in DTLA and can see the effects of rent control properties. Landlords are much less incentivized to spend money to improve their property when they can only increase rents by 3%.

@Julia Fergo , yeah and I've been seeing these tenant groups organizing and even doing "rent strikes" where they go to the landlords home and harass them with bullhorns ...pass out flyers to the neighbors. This is with non rent controlled buildings. I know that happened with one landlord and he negotiated with the tenants, maybe he feared for his life/safety. The ones i've heard of just stopped paying rent altogether for many months. 

I didn't know about the sealing of eviction records, that is really bad. It is a shame people take advantage of the system like this.

Some articles about these rent strikes 

https://www.washingtonpost.com/national/los-angele...

https://losangeles.cbslocal.com/2018/08/02/tenants...

@Jeffrey Almonte

Yeah there is a lot of uncertainty right now in the current environment here in CA especially with the upcoming vote on Prop 10... It is a shame because we have a lot of these buildings that are really run down and like you said it's because the landlords don't have incentive to keep the buildings up and invest in them. 

This is a very big deal. Our beloved Mayor Eric Garcetti is behind it, as is many other CA politicos. I find it so hypocritical of Eric, a person who has been spoon-fed his entire life, and openly ignored Elysian Valley while showering Silverlake with prosperity during his younger years in office. This guy, and probably most of the other political figures, just want votes. I want to empathize with the renters who have it hard to stay on top of the rent, but I worked my behind off for many years, and took a huge risk to become a mom and pop landlord. Why should I provide essentially free or damn near free housing to a person who demands it, while Eric Garcetti does a victory lap around LA and tries to use this "humane" accomplishment to springboard him to the Presidency. Screw that! Garcetti sold his Echo Park home about a year ago for a whopping $1M (roughly)! Why didn't he keep the home and rent it out to a family for free? That would have been the greatest PR for his stupid campaign for President.

From an article today about this “rent freeze” 

—-

“Janet Gagnon, director of government relations for the Apartment Association of Greater Los Angeles, called the rent freeze a “lethal injection” for mom and pop property owners and likened supervisors to Dr. Jack Kevorkian.

Property owners, she said, “are being clubbed like baby seals.”

https://la.curbed.com/2018/9/11/17846442/los-angeles-county-rent-freeze-hikes-tenants-protections

I'm interested to see if any owners are going to sue the city for regulatory taking of property. Rent control directly affects one's income, property value, and an owner's ability to evict tenants and the expansion of rent control may provide standing for properties that fall under the new ordinance. 

@KJ L. there should be lawsuits . As there are lawsuits for the most frivolous things but this is a serious matter . The reality is there is no right to cheap or “affordable” ( whatever that means ) rent . 

People are celebrating this but I see it limiting the rental supply . Most people don’t buy rentals to lose money at least on purpose .

This seems to only affect the unincorporated parts of la county like East L.A and some others but still. 

I think it’s unfortunate these supervisors have depicted landlords as greedy people that are to blame for the city’s homeless problem. They should really know better.

I imagine a lot of these owners will be looking to redevelop their property or sell to a developer . What is the incentive to rent units for like $700 a month in L.A ? Those are Midwest rents