Los Angeles, CA — landlord and rental rules

The Rent Stabilization Ordinance cap was cut from a 3–8% range to 90% of CPI within a 1–4% range. The ordinance passed on 12 December 2025 and took effect in early February 2026, with a transitional 3% ceiling until 30 June 2026 and a 4% maximum applying to increases from 1 July 2026.

A pro forma built on the old 3–8% range overstates achievable growth by roughly half. Check which ceiling applies to the increase date, not to the purchase date.

Annual cap

4%

In effect since 2026-02-01.

The Tenant Protection Act caps annual rent increases at 5% plus CPI, with a hard ceiling of 10%, on housing built more than 15 years ago.

The 15-year window rolls forward, so a building drifts into coverage with age rather than being fixed by its construction date at purchase.

Annual cap

10%

Construction

Built before 2011

In effect since 2020-01-01.

Costa-Hawkins exempts post-1995 construction and single-family homes and condominiums from *local* rent control, and preserves the landlord's right to reset rent to market on vacancy.

It does not help at the affordable end, because affordable stock is old stock: the buildings a small investor can actually buy are usually the ones Costa-Hawkins does not exempt.

Vacancy decontrol

Yes — rent resets on vacancy

Construction

Built after 1995

FAIR Plan policies are up 139% since 2021, habitability claims are now commonly excluded, and earthquake cover is excluded from every standard policy.

Get a bindable quote before removing contingencies. An insurance assumption carried over from another state is the single largest silent error in a California pro forma.

Fair plan increase since2021

139%