What Is LARSO & how does it work?

Background Info

  • The "Rent Stabilization Ordinance" is the rent control law in the City of Los Angeles. It covers about 70% of renter-occupied units in the city.

    It applies to buildings constructed before Oct 1, 1978, and only applies to those with two or more units on the same property (apartments, condos, duplexes, etc. but unfortunately not single family homes).

  • The RSO sets a formula for allowable rent increases per year which is tied to the Consumer Price Index (CPI), a measure of inflation.

    Every year LA sets the annual allowable rent increase for RSO units by rounding CPI to the nearest whole number, and limiting allowable rent increases to a range between 3-8% each year. So for example:

    If CPI is 5.3% then the allowable rent increase will be rounded down to 5%.

    If CPI is 5.5% then the allowable rent increase will be rounded up to 6%.

    If CPI is 10% then the allowable rent increase will be capped at 8%.

    If CPI is 1.2% (or is negative) then the allowable rent increase will still be as high as 3%.

    This sets the base allowable rent increase rate, and landlords are allowed to add an additional 1% each for gas and electric utilities if they are included in the rent. (This is why allowable RSO rent increases for Feb 1, 2024 are 4% for rent alone, and up to 6% if utilities are included.)

    The bottom of the range, the 3% “floor” does not force any particular landlord to raise the rent. Rather, it forces the city to allow landlords to raise the rent every year, regardless of the rate of inflation if the landlord chooses to do so. It provides landlords with a minimum guaranteed increase in their passive income, if they want it.

  • In March 2020, as an emergency pandemic protection, all RSO rent increases were put on hold until February 1, 2024. (That means if you live in an RSO unit, you should not have received a rent increase since 2020.) And while this alone did not solve the housing crisis, it did prevent a much worse disaster from taking place. That freeze expires one year from the declared end of the pandemic, which means it expires on Feb 1, 2024. If you live in an RSO unit your rent might go up on that date.

  • It requires landlords to register their rental units.

    Allows evictions only for specific legal reasons.

    Requires the landlord to pay tenant relocation assistance money for certain types of evictions.

    Requires the landlord to provide tenants with a list of their rights prior to a “Cash for Keys” buyout.

    Requires landlords to pay interest on all security deposits held for at least one year for their tenants.

    Learn more at: LAHD RSO Site

Enter your address at this link, then look to the left under the “Housing” drop down. Look for the “Rent Stabilization Ordinance” field to indicate “Yes” or “No”.

LA’s RSO currently allows these rent increases:

  • Annual Rent Increase Formula


    The LA Housing Dept. sets a yearly allowable rent increase that matches 100% of CPI. (CPI is a measure of inflation over the previous year.) Rent can be raised only once every 12 months.

    The allowable rent increase is limited to a range between 3% minimum, and 8% maximum. (Read more about this below!)

  • Annual Increases for Included Utilities


    The landlord can add an additional 1% per utility paid by the landlord. This only applies to gas and/or electricity.

    This is why allowable rent increases are listed as a range (for example: on Feb 1, 2024 allowable rent increases were set at 4-6%).

  • One-Time Increase (10%) for Each Additional Occupant.


    Landlords can increase the rent (10% maximum) within 60 days of learning about the additional tenant.

    There is no increase for the first minor dependent child added to the existing rental unit.

OUR DEMANDS

  • 60% CPI and never more than 3%.


    Annual Rent Increases should be set at 60% of CPI (not 100%) and never exceed 3% per year.

    Several cities in LA County and across the state have similar annual rent increase formulas. Oakland uses the same 60% CPI (3% max) formula. Santa Monica, Cudahy, and West Hollywood all have 3% rent increase ceilings.

    As the city with the most renters in the state, Los Angeles deserves the strongest rent control.

  • No increases for included utilities.


    A previous independent study of LA's RSO and found that there was no connection between the cost of providing utilities and the additional allowed rent increase. It further found that the 1-2% supplemental increase “substantially exceeded the actual cost increase” of providing the utilities.

    Additionally, landlords already consider the cost of providing utilities when they set rent (they charge more if utilities are included), and they are already allowed to raise rent every year.

  • No increases for Additional Occupants


    Angelenos are already forced into overcrowded housing by high rents. Increasing rent for additional occupants keeps friends and families from helping their loved ones avoid homelessness.

    Furthermore, there is no requirement for these increased charges to be removed after an additional occupant moves out.

    We demand stability for residents, not investments.

Take Action

Council members are already hearing from landlords,
they need to hear from you, as a tenant, now more than ever!

NOT INVESTMENTS

HOMES FOR RESIDENTS