Patrick Iturra, Asset/Investment Manager & Consulting. November 9, 2023
Striking a Balance with Rent Controls
The Los Angeles housing market saw significant changes with the enforcement of new rent control laws in April 2023. The RSTPO and MRSMOPO aim to stabilize rents and extend eviction protections, impacting both tenants and landlords.
Implementing Rent Increase Caps
To address affordability, the city now caps rent increases at 3% for most rentals and 5% for luxury units, effective December 31, 2023. Consequently, these caps are essential for tenants facing economic uncertainties and landlords seeking sustainable rental operations.
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Mobilehome Rent Adjustments
Furthermore, the MRSMOPO links mobile home rent increases to the CPI’s annual variation. This ordinance, particularly affecting unincorporated areas, ensures mobile home tenants receive protections comparable to traditional housing.
Phasing Out Rent Freezes
Moreover, a Los Angeles City Council committee has decided against extending the emergency rent freeze, setting the stage for its expiration in January 2024. As a result, tenants and landlords must prepare for the transition to regulated rent increases.
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Expanding Tenant Protections
Additionally, the city has extended tenant protections to include 400,000 households in units built post-1978. This expansion demonstrates the city’s dedication to a more inclusive approach to tenant rights.
Conclusion
In summary, the updated rent control ordinances in Los Angeles represent a thoughtful attempt to stabilize the rental market. These regulations protect tenants from steep rent increases and offer landlords clarity and consistency in managing their properties. As such, they are an integral part of Los Angeles’ strategy for a fair and equitable housing system in the post-pandemic era.
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