After Los Angeles moved to significantly lower yearly increases in most of the city\u2019s apartments, some City Council members now want to change the rules again. This time, they\u2019re hoping to give small landlords the ability to raise rents more than their corporate counterparts.<\/p>\n
On Tuesday, the council is scheduled to vote on a proposal that would let small landlords \u2014 those who own 10 units or fewer \u2014 raise rents by an additional 1% each year. The idea was put forward by Councilmembers John Lee and Monica Rodriguez.<\/p>\n
\u201cThis modest adjustment recognizes the difference between a family that owns a few units and a large corporate operator,\u201d Lee said in a statement to LAist. \u201cOur goal is to keep small landlords in the system and prevent the loss of rent-controlled homes.\u201d<\/p>\n
While the idea is gaining support from landlord groups, tenant advocates say the proposal would create a cumbersome and unfair, two-tier system in which some renters have to pay more than others.<\/p>\n
The changes coming for LA rent control\u00a0<\/p>\n
In a culmination of years of debate, the City Council voted last month<\/a> to lower the maximum allowable rent increase in the city\u2019s rent-controlled housing to 4% per year. That\u2019s down from the previous maximum of 10%.<\/p>\n Lee, whose district includes the northwest San Fernando Valley, voted against the changes after expressing concern about how the lower increases would affect the bottom line of small rental property owners. Rodriguez, whose district includes the northeast San Fernando Valley, supported the changes, but said more should be done to keep \u201cmom-and-pop\u201d landlords afloat.<\/p>\n \u201cThe motion proposes a modest adjustment to help ensure these small landlords remain viable, rather than being pushed out and accelerating the further corporatization of housing in Los Angeles,\u201d Rodriguez said in a statement to LAist.<\/p>\n Landlord groups said the proposed 1% increase could help at the margins, but small landlords would still have to contend with insurance premiums and maintenance costs that have been rising faster than overall economic inflation.<\/p>\n \u201cThrowing a bone in the form of an additional 1% to smaller owners is necessary but will be insufficient to keep many owners in the housing business,\u201d Daniel Yukelson, executive director of the Apartment Association of Greater Los Angeles, said in an email. \u201cMore and more, owners are being forced to look for the exit ramp in the city of Los Angeles.\u201d<\/p>\n Do small landlords really have it harder?<\/p>\n