How Los Angeles's New Rent Control Reforms Affect Property Owners in 2025
November 20, 2025
On November 12, 2025, the Los Angeles City Council voted to change the city's rent control rules for the first time in 40 years. The Rent Stabilization Ordinance (RSO) governs some 650,000 apartments in LA, so these changes will have a major impact on tenants and landlords alike.
What's Changing Under the New Los Angeles Rent Control Rules?
Since 1985, the Los Angeles rent control ordinance has allowed landlords to raise rents at least 3% every year—and up to 8% depending on the Consumer Price Index (CPI). Additionally, the previous rules allowed landlords who paid for a tenant's electric and gas service to impose an extra 2% annual increase. This meant that during high inflationary periods, some tenants could potentially see their rent increase by up to 10% per year.
The newly passed reforms have eliminated the additional 2% utility increase and approved a new formula that ties annual rent increases to 90% of the regional CPI, with a cap between 1% and 4% for all rent-stabilized apartments. This means rent increases will now rise more slowly than inflation.
Is My Rental Property Subject to Rent Control?
These new rules affect apartments within Los Angeles city limits, so these changes wouldn't apply to separate municipalities within LA County, such as West Hollywood, Culver City, or San Fernando.
To be covered by Los Angeles rent control rules, the apartment must have been built before October 1978. However, there are exceptions, including some new apartments attached to an older building and newly built units that have replaced demolished rent-controlled units.
While not affected by this change, several other Southern California cities have their own rent control laws, including Pasadena, Santa Monica, Beverly Hills, and West Hollywood. Unincorporated areas of LA County are subject to the county's own Rent Stabilization Program.
California Rental properties may also be subject to the statewide rent control law, AB 1482 which requires landlords to have "just cause" to terminate a tenancy and limits annual rental increases. This law applies to any apartments in the state more than 15 years old, meaning each day more buildings become subject to its requirements.
Still Unsure if Your Building is Subject to Rent Control?
When Does Los Angeles's New Rent Control Law Take Effect?
Before these new rules take effect, the Los Angeles City Attorney's Office must draft the formal ordinance and return it to the City Council for a final vote, which means some details might still change.
In the meantime, the current rules remain in effect. Mom-and-pop landlords who have not increased rent on their rent-controlled units in over a year have a limited window to do so before the new cap is in place.
What This Means for Hollywood Property Owners
For landlords with rent-controlled properties in Hollywood and throughout Los Angeles, these changes require careful planning. Understanding how the new rent increase formula affects your bottom line - and timing any adjustments appropriately - is essential to protecting your investment.
At Silver Screen Properties, we help property owners navigate Los Angeles's complex rent control regulations. Whether you need guidance on allowable rent increases, finding the perfect tenant, or full-service property management, our team is here to help.
