POLICY NEWS: L.A. CITY CUTS ALLOWED RENT INCREASES
On November 12, the Los Angeles City Council voted 10-2 to revise the Rent Stabilization Ordinance (RSO), significantly reducing the allowable rent increases for RSO units.
Key changes include:
The new formula takes effect February 1, 2026. While more drastic proposals were rejected, the council’s actions mark a substantial shift, limiting landlords’ ability to keep pace with inflation.
Property owners and managers should review these changes carefully and plan accordingly, as this update is likely to impact rent adjustments and property operations in the coming year.
COMPLIANCE UPDATE
Burbank Advances New Housing Requirements
On October 28, 2025, the Burbank City Council voted 3-to-1 to direct staff to draft an ordinance implementing a 4% annual rent increase cap. Exceeding the cap could require landlords to pay relocation fees equal to three months’ rent at the new rate.
The ordinance would apply to multifamily properties built before February 2, 1995, and could extend to all rental housing, including newer multifamily buildings, single-family homes, ADUs, condos, and townhouses. For newer properties, relocation fees would apply only if rent exceeds statewide rent stabilization limits (the lesser of 10% or CPI + 5%, currently 8% in L.A. County).
Additional proposals under review include:
Despite opposition from rental housing providers, the council advanced these measures. Property owners are advised to monitor developments, attend City Council meetings, and communicate concerns to council members as these ordinances move forward.
This article is for informational purposes only. Consult a qualified attorney regarding property-specific compliance or leasing requirements.
Keeping building expenses under control is essential for property owners. Here are six practical, up-to-date tips:
- 🛠️ Respond Quickly to Maintenance Requests
Fast service keeps tenants happy, reduces turnover, and protects your reputation. - 💰 Bid Out Vendors Annually
Compare multiple vendors for painting, plumbing, HVAC, and other services. Balance cost with quality to avoid long-term issues. - 🔍 Conduct Preventative Inspections
Every six months, check smoke alarms, plumbing, appliances, HVAC, and look for leaks or hazards. Encourage tenant cleanliness to prevent pest issues and extend the life of carpets and appliances. - 📲 Monitor Laundry and Vending Revenue
Use cashless or app-based systems to track income accurately while staying engaged with your property’s operations. - 🏷️ Review Property Taxes
Take advantage of market dips to challenge assessments using comparable properties to potentially lower your tax burden. - 🛡️ Bid Out Insurance
Work with a broker to get multiple quotes and ensure competitive pricing and comprehensive coverage.
💡 Bottom Line: Staying proactive with maintenance, vendors, and inspections protects your building and cash flow. Partnering with Power Property Management ensures your property is well-maintained, leased efficiently, and optimized for maximum returns.
