Proposed California Rent Freeze Faces Opposition from Property Owners

A newly proposed bill, AB 246, seeks to impose a one-year rent freeze across Los Angeles County, preventing rental housing providers from increasing rents until 2026. While the measure aims to address affordability concerns, property owners warn it could create long-term challenges, including financial strain on landlords and reduced housing supply.

What AB 246 Proposes

Introduced by Assemblyman Isaac G. Bryan (D-Los Angeles), AB 246 would:

• Prevent rent increases for one year, locking rents at January 7, 2025, levels.
• Override local government decisions, enforcing a rent freeze even in areas where local leaders have opted against such policies.
• Allow civil penalties of up to $10,000 per violation for landlords who raise rents during the freeze.

Why Property Owners Are Concerned

Many rental housing providers argue that AB 246 is unnecessary and harmful for several reasons:

1. California already limits rent increases during emergencies – Penal Code §396 caps rent hikes at 10% in declared emergency zones. AB 246 would introduce additional restrictions, even when existing protections are in place.
2. Landlords are still recovering from pandemic-era rent freezes – Many housing providers endured nearly five years of restrictions, with some losing their properties due to mounting expenses and frozen rental income.
3. It could set a precedent for future state-mandated rent freezes – If passed, AB 246 could be expanded or replicated after wildfires, floods, or other emergencies, further reducing landlord control over rental income.
4. It may discourage property investment and maintenance – Freezing rents while operational costs continue to rise could make rental housing a less viable investment, leading to a decline in available units.

Next Steps for Rental Housing Providers

While the California Assembly has not yet voted on AB 246, rental housing advocates are actively voicing their concerns. Property owners and stakeholders are encouraged to stay informed, engage with local representatives, and explore strategies to protect their investments while remaining compliant with evolving regulations.

For expert guidance on California’s rental laws and how they impact property owners, contact our team today. We specialize in keeping landlords informed and compliant in a shifting regulatory landscape.