New Rental Property Regulations in Los Angeles – Effective December 2024

Los Angeles is implementing significant changes to rental property regulations starting December 2024. These updates are aimed at expanding tenant protections and addressing the housing crisis while presenting new challenges for property owners. Here’s everything landlords need to know about these changes and how to navigate them effectively.

Key Changes for Los Angeles Property Owners

1. Annual Fee per Unit

• Owners of non-Rent Stabilization Ordinance (RSO) properties must now pay an annual fee of $31.05 per unit.
• This fee is allocated to enforce tenant protection measures, signaling a shift towards broader oversight of all rental properties in Los Angeles.

2. Just-Cause Evictions Expanded

• Just-cause eviction rules now apply to all rental properties, including single-family homes and Accessory Dwelling Units (ADUs).
• Valid reasons for eviction (14 just-cause categories) include:
  • Nonpayment of rent.
  • Damage or nuisance behavior that affects the property or neighbors.
  • Owner move-in, where the landlord intends to use the property as their primary residence.
  • Substantial renovations or conversions into affordable housing units.

3. Mandatory Relocation Fees

• Landlords must compensate tenants in specific eviction scenarios, such as renovations or property conversions.
• Relocation fees range from $9,200 to $27,500, depending on the tenant’s circumstances, including:
  • Length of tenancy.
  • Tenant vulnerability, such as age (senior citizens) or disability.

4. Extension of Protections

• Historically, just-cause eviction laws applied only to RSO properties.
• Now, these protections extend to properties that were previously exempt, including single-family rentals and newer developments.

Why These Changes?

Los Angeles faces ongoing challenges with housing shortages and homelessness. The City Council has justified these measures as necessary to stabilize rental housing while addressing the long-term fallout from the pandemic.

Post-pandemic, temporary renter protections like eviction moratoriums have expired. These new regulations are seen as a way to ensure continued tenant stability and prevent displacement during a critical housing crisis.

How These Regulations Impact Property Owners

For landlords, these changes could mean:

• Higher operating costs due to annual fees and potential relocation payouts.
• Increased administrative burden to comply with just-cause eviction requirements.
• Reduced flexibility in managing tenant turnover, particularly for properties that were historically exempt.

Navigating these changes requires careful planning, compliance with legal standards, and a clear understanding of your rights as a landlord.

What’s Next for Los Angeles Rental Properties?

As Los Angeles continues to tighten regulations, property owners must stay informed and proactive. Whether you’re managing single-family homes or multifamily units, compliance with these new rules is essential to avoid penalties and maintain positive tenant relationships.

Need Help Managing Your Los Angeles Rental Property?

At Real Property Management Select, we specialize in helping property owners across California navigate complex regulations, including these new rental laws. Our expert team provides end-to-end property management services in Sacramento, Roseville, Concord, Fairfield, and beyond.

💬 Contact us today to learn how we can help you adapt to these changes while maximizing your rental investments.