City of Los Angeles Rent Stabilization Ordinance: Caps and Evictions

The Los Angeles Rent Stabilization Ordinance caps how much your rent can go up each year, limits the reasons a landlord can evict you, and requires relocation payments when a no-fault eviction pushes you out of your home. It applies to most rental units inside the City of Los Angeles that first received a certificate of occupancy on or before October 1, 1978, and it covers roughly 650,000 apartments citywide. A significant set of amendments took effect on February 2, 2026, tightening the rent increase formula and eliminating several surcharges landlords could previously add.

Which Units Are Covered

The ordinance applies only inside the City of Los Angeles.1Los Angeles Housing Department. Los Angeles Municipal Code Chapter XV – Rent Stabilization Ordinance Unincorporated Los Angeles County, Santa Monica, and West Hollywood have their own separate rent laws. The building must have received its first certificate of occupancy on or before October 1, 1978. For older properties predating certificates of occupancy, building permits showing residential use before that date can establish coverage.2Los Angeles Housing Department. Rent Stabilization Bulletin – RSO Registration of Rental Property

Covered housing includes apartments, duplexes, townhomes, mobile homes in mobile home parks, and rooms in hotels, motels, or boarding houses occupied by the same tenant for 30 or more consecutive days.3Los Angeles Housing Department. What Is Covered Under the RSO

Not every pre-1978 building qualifies. Single-family homes and condominiums are exempt because state law (the Costa-Hawkins Rental Housing Act) blocks cities from capping rent on those property types.4City of Los Angeles. Report of the Chief Legislative Analyst – Resolution to Support AB 1791 Units built after October 1, 1978 are also outside the ordinance, along with government-subsidized housing where rents are already regulated. There is also a rarely used luxury exemption for units that were renting above certain thresholds on May 31, 1978, but only if the landlord obtained a luxury exemption certificate from the housing department. The exemption is not automatic.5Los Angeles Housing Department. Luxury Exemption Certificate

How Much Rent Can Go Up Each Year

Rent on a covered unit can be raised only once every 12 months. The allowable increase is tied to the Consumer Price Index for the Los Angeles area, but not as a straight pass-through. Under the formula that took effect February 2, 2026, the annual increase equals 90% of the average CPI, with a floor of 1% and a ceiling of 4%.6Los Angeles Housing Department. Renter Protections The previous formula produced a range of 3% to 8%, so the new cap is meaningfully lower.

Through June 30, 2026, the maximum annual increase is 3%.6Los Angeles Housing Department. Renter Protections The housing department will announce the rate for the following year based on the updated formula.

Utility and Occupancy Surcharges Are Gone

Before February 2, 2026, a landlord who paid a unit’s gas or electricity could add an extra 1% to the annual increase for each utility, and there was a separate 10% surcharge for additional occupants. The City Council eliminated both.7Los Angeles Housing Department. RSO Rent Increase Calculator No extra percentage may now be added for utilities the landlord provides.

Notice Before an Increase

California law requires written notice before any rent increase takes effect. For an increase of 10% or less of the current rent, the landlord must give at least 30 days’ notice. If the increase exceeds 10%, the required notice jumps to 90 days.8California Legislative Information. California Code CIV 827

Vacancy Decontrol

When a tenant voluntarily moves out or is evicted for cause, the landlord can reset the rent to any market rate for the next tenant. Once a new tenant moves in, the annual increase limits apply again to that tenancy. The protection is against sharp increases while you are living there, not against the unit reaching market rate between tenancies.

When a Landlord Can Evict You

A landlord cannot simply decline to renew a lease or tell you to leave. The ordinance limits evictions to specific grounds listed in the municipal code, split into at-fault and no-fault categories.9American Legal Publishing. Los Angeles Municipal Code 151.09 – Evictions

At-Fault Grounds

At-fault evictions turn on tenant conduct. They include nonpayment of rent the landlord is legally entitled to collect; violating a lawful lease term and failing to correct it after written notice; causing a nuisance or damaging the unit, common areas, or building; using the unit for illegal purposes; refusing to sign a new lease on substantially similar terms; refusing reasonable access for repairs, inspections, or showings; and being an unapproved subtenant remaining at the end of a lease term.9American Legal Publishing. Los Angeles Municipal Code 151.09 – Evictions With at-fault evictions, the landlord owes no relocation assistance.

No-Fault Grounds

A no-fault eviction means you have done nothing wrong, but the landlord has a legally recognized reason to recover the unit. The common grounds are:

  • Owner or immediate family move-in, where the landlord must be a natural person and seeks the unit as a primary residence for themselves, a spouse, child, grandchild, parent, or grandparent.
  • Demolition or permanent withdrawal from the rental market under the Ellis Act.10Los Angeles Housing Department. Ellis Act Information
  • A government order to vacate the building.
  • Primary renovation requiring the unit to be vacated under an approved Tenant Habitability Plan.
  • Conversion of the property to affordable housing.

Every no-fault eviction triggers a relocation payment and must follow strict filing procedures with the housing department.

Owner Move-In: Extra Rules

Owner move-in evictions draw the closest scrutiny. The owner or family member must actually move in within three months and stay for at least two years. If the owner re-rents the unit within two years, the displaced tenant has a right of first refusal, provided the tenant gave written notice of their interest within 30 days of being displaced. Failing to move in on time or failing to stay two years can be treated as evidence of a bad-faith eviction.11Los Angeles Housing Department. Evictions for Occupancy by Landlord, Landlord’s Immediate Family or a Resident Manager

Relocation Assistance for No-Fault Evictions

When a landlord initiates a no-fault eviction, the tenant is entitled to a relocation payment. The amount depends on whether the tenant is classified as “eligible” or “qualified.” A qualified tenant is anyone who, on the date the eviction notice is served, is 62 or older, disabled, or has one or more minor dependent children.12Los Angeles Housing Department. Relocation Assistance Information Qualified tenants receive a higher payment than eligible tenants, who are all other adults in the unit.

The dollar amounts are adjusted annually based on CPI, with updated figures published each July. The landlord must provide the funds within 15 days of serving the written notice to terminate, or deposit them into an escrow account.13Los Angeles Housing Department. Relocation Assistance Missing the 15-day deadline or paying the wrong amount can void the eviction notice entirely.12Los Angeles Housing Department. Relocation Assistance Information This is where landlords most often trip up, and an incomplete or late payment is a defense to the eviction.

Buyout Offers (“Cash for Keys”)

Sometimes a landlord would rather pay you to leave voluntarily than pursue a formal eviction. These agreements are legal, but the ordinance imposes real protections. Before making any buyout offer, the landlord must serve you with an RSO Disclosure Notice explaining your rights. The notice must be signed and dated by both parties. The buyout agreement itself must be written in the tenant’s primary language and include a bold statement above the signature line about your right to cancel.14American Legal Publishing. Los Angeles Municipal Code 151.31 – Tenant Buyout Notification Program

After signing, you have 30 days to cancel for any reason without penalty. If the landlord skipped any required step, such as the disclosure notice, the correct language, or the cancellation statement, you can cancel at any time, even after 30 days.15Los Angeles Housing Department. Tenant Buyout Notification Program The landlord must file copies of the disclosure and the signed agreement with the housing department within 60 days. Violations can lead to damages plus a $500 penalty per violation.14American Legal Publishing. Los Angeles Municipal Code 151.31 – Tenant Buyout Notification Program

No tenant is ever required to accept a buyout. You can refuse, negotiate a higher figure, or consult a lawyer first. Retaliation for saying no is prohibited.

Major Renovations and Tenant Habitability Plans

When a landlord undertakes major work such as re-piping, seismic retrofitting, rewiring, hazardous material removal, or structural improvements exposing the building frame, the housing department requires a Tenant Habitability Plan before work begins. The plan describes the scope of work and the specific measures the owner and contractors will use to protect tenants during construction.16Los Angeles Housing Department. Tenant Habitability Program

The plan must address noise, utility shutoffs, exposure to hazardous materials, disruption to fire safety systems, and loss of access to parts of the unit. Tenants cannot be forced to occupy a unit that is uninhabitable outside 8:00 a.m. to 5:00 p.m., Monday through Friday, or be exposed to toxic materials at any time.16Los Angeles Housing Department. Tenant Habitability Program If temporary relocation is necessary, the landlord bears that cost. Ask to see the accepted plan before any work starts.

Security Deposit Interest

Landlords under the ordinance must pay interest on every security deposit they have held for at least a year. The Rent Adjustment Commission’s rate for 2026 is 3.03%.17Los Angeles Housing Department. Interest Payment on Security Deposit Bulletin

The landlord can use either the commission’s published rate or the actual interest earned if the deposit sits in an interest-bearing account. Using the actual-earnings method requires providing a bank statement; without one, the commission’s rate applies by default. Interest must be paid to you either as a direct payment or as a rent credit, on a monthly or yearly basis, and the landlord must notify you in writing of which method they chose. Waiting until the end of the tenancy to pay accumulated interest is not enough. When the tenancy ends, any unpaid interest must come back with the deposit itself.18American Legal Publishing. Los Angeles Municipal Code 151.06.02 – Payment of Interest on Security Deposits

If Your Building Loses Services

A landlord who cuts housing services without lowering the rent has effectively raised it. If your building loses amenities you have been paying for (laundry room access, parking, a working elevator, reliable hot water), you can file a complaint with the housing department seeking a rent reduction.19Los Angeles Housing Department. Reduction in Housing Services

The process requires a written complaint to the department and written notice to the landlord identifying the lost service. The department investigates and can order a rent reduction retroactive up to three years from the date you filed. If the landlord restores the service within a reasonable time after being notified, the department may decline to order a reduction, so filing quickly matters.19Los Angeles Housing Department. Reduction in Housing Services

Registration Is a Tenant Defense

Every covered unit must be registered with the Los Angeles Housing Department each year, and the landlord must pay a per-unit fee. A landlord who has not paid and filed the required paperwork cannot legally demand or accept rent, and cannot serve a valid eviction notice.1Los Angeles Housing Department. Los Angeles Municipal Code Chapter XV – Rent Stabilization Ordinance Courts routinely dismiss unlawful detainer cases when the landlord’s registration is not current. If a rent increase or eviction notice arrives and you suspect the landlord has not registered, you can verify through the housing department’s online database.

What You Can Recover for a Violation

A tenant who is charged rent above the legal maximum can sue the landlord and recover three times the excess amount, plus reasonable attorney fees and costs. That treble-damages rule makes RSO violations genuinely expensive for landlords, and it gives tenants leverage to challenge an illegal increase without fear of the legal bill. A landlord who violates any provision of the ordinance can also be charged with a misdemeanor, punishable by a fine of up to $1,000 or up to six months in jail.