7% Rent Increases in the City of LA

LAHD Announces 7% Rent Increases Effective Feb 2024

The Los Angeles Housing Department has announced that landlords will be allowed to issue 7% rent increases effective February 1st, 2024. An additional 1% for gas and 1% for electric service can be added if the landlord provides these services to the tenant.

It will be nearly 4 full years with frozen rents for RSO properties in the City of LA, so while these 7% increases are more than welcomed, LA landlords have still taken a major hit to their rent rolls. This freeze, in combination with the rapid increase in interest rates, is beginning to create a certain level of distress in the market, especially for those who acquired properties between 2018-2020 with short-term debt (3 or 5 years).

The wording of the LAHD announcement states that the 7% increases will be allowed "unless amended by City Council", so at this point we'll need to keep our fingers crossed and hope that they don't walk back their decision.

You can access the most updated version of the Renter Protections here.