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Topline:
Starting Tuesday, rent increases for most apartment dwellers in Los Angeles will be capped at 3% — or up to 5% if utilities are included. The new limits are taking effect at a time when the L.A. City Council continues to put off voting on a plan to update the city’s decades-old rent control formula.
Who’s covered: The city’s rent control caps generally apply to tenants living in apartments built before October 1978. These older units make up about two-thirds of all L.A. apartments. Tenants in these apartments can now have their rent increased by up to 3% — unless landlords also cover the tenant’s gas and electricity bills, in which case another 1% can be added for each utility, bringing the maximum allowable increase to 5%.
What’s new: The new rent hike caps are slightly down from the previous limits, which ran from 4% to 6%. Trends in local inflation determine how high landlords can raise rents. With inflation steadily declining in recent months, so too are the city’s allowable rent increases. The new 3% to 5% cap is set to remain in place through June 30, 2026.
Why no reforms yet? The city’s Housing Department has recommended getting rid of the additional 2% utilities bump, citing an economic report which found the surcharge unfairly increases costs on tenants. City housing officials have also recommended changes to how allowable increases are calculated. Those changes would have capped rent hikes at 2% on Tuesday. The current maximum of 5% is taking effect because the L.A. City Council has yet to schedule a vote on the proposed reforms.