Decorative imageOCTOBER 2025

RSO OVERHAUL IN DISCUSSION
Los Angeles Rent Control Update

It’s official, Q3 has wrapped, and we’re heading into the final stretch of the year. There’s still plenty happening across Los Angeles, from new codes to shifting local trends and updates worth keeping an eye on. In this edition, we’ll cover the key highlights shaping the months ahead.

On October 1, the LA City Council held a public session to review proposed adjustments to the Rent Stabilization Ordinance (RSO)—the most extensive overhaul since 1978. If enacted, these changes would tighten rent growth policies on RSO units at a time when operational costs are already rising.

Summary of Proposals

Comparison table showing proposed changes to economic policy: 'CPI-All Items' replaced by 'CPI-Less Shelter', floor reduced from 3% to 2%, cap lowered from 8% to 5%, and pass-throughs eliminated.

➡️ Some groups are pushing for stricter versions—like a fixed 3% cap or 60% of CPI.

Independent economists warn that these changes may reduce rental housing supply and lead to disinvestment.

We have some great news for all of our investors! Recent legislative updates bring bonus depreciation back into sharper focus for investors. But this isn’t just a tax perk—it’s a window to restructure how long-term holdings are underwritten.

What to Do Next

No votes were taken during the October 1 session, but the tone signaled strong momentum for change. Expect formal proposals in the coming months.

  • Review rent rolls vs. allowable increases
  • Address deferred maintenance proactively
  • Get a mid-year check-in on income, expenses, and NOI

Let’s get your building set up for a strong finish to 2025!




Los Angeles Multifamily Trends: What 2025 Data Tells Us

Power Property Management brings you this quick check-in on market trends, property performance, and policy updates affecting rental property owners across Los Angeles.

Graphic showing a 5.6% year-over-year increase in rent growth, led by coastal and westside areas. Includes an upward arrow and a row of red-roofed houses to visually represent rising housing costs.

Review your rent rolls—opportunities may exist for moderate adjustments, especially if your units are updated.

Infographic showing real estate market metrics: vacancy rates between 5.1% and 5.7% remain steady across submarkets, and cap rates ranging from 5.5% to 6.3% reflect cautious investor behavior and conservative underwriting.

Occupancy is holding. Buyers are selective.
➡️ Buildings with consistent maintenance and accurate reporting are leasing faster and attracting stronger offers.

Source: 2025 Mid-Year Los Angeles Multifamily Report, Institutional Real Estate, Inc. (IRR)

Market dynamics are shifting, but properties with clear strategies and consistent oversight continue to perform. Staying informed is one part of the equation—applying that insight to rent positioning, expenses, and tenant experience is where the gains are made.

Power Property Management tracks the trends so you don’t have to guess. Let’s keep your asset performing!