Several clients are purchasing or interested in purchasing multifamily investment properties in the Los Angeles area. The City of Los Angeles is under rent control and it has specfic rules and regs a prospective buyer needs to know about prior to purchasing a property.
Here’s some “starter” information with links to appropriate sites where you can delve deeper into the subject of rent control in Los Angeles.
LA City Rent Control – Managed by LA Housing Dept
- “Rent Stabilization Ordinance” – Summary
- Applies only to properties inside the LA City borders which in the South Bay includes most of San Pedro, Wilmington, Harbor City and strip of land running near the 110 freeway. (See map.)
- Applies to multi-family, not to single family homes.
- Does not apply to properties built after Oct. 1 1978.
- Rent increases are determined every year by LA City. It was 3% the last few years, but is capped at 8% max. Chart
- Reasons for eviction are limited. If evicting for other reasons, landlord may have to pay the tenant (Current rules and rates are $7,050 to $18,650.)
- Properties are required to register with LA City. LA City may do inspections and require repairs. Failure to do repairs could place the property in REAP, where rent payments are made to the city and impounded in an escrow account until repair items are resolved. City may reduce rent of tenant if property goes in to REAP.
- Forms and Publications
For more information about investment properties in the South Bay and Greater Los Angeles contact Norma Toering & Team. (310) 493-8333.