Los Angeles Rent Stabilization Ordinance (RSO): Landlord's Guide

The Los Angeles Rent Stabilization Ordinance (RSO) is one of the strongest tenant protection laws in California. If you own residential property in the City of Los Angeles, understanding whether the RSO applies to your units (and what it requires if it does) is not optional.

Which units are covered

The RSO covers most residential rental units in the City of Los Angeles that meet ALL of the following criteria:

• Built and first occupied before October 1, 1978
• Two or more units on the same property (duplexes count)
• Not exempt for another reason (see below)

A single-family home built in 1965 with no other unit on the parcel is generally not covered. A four-plex built in 1972 is almost certainly covered. Condominiums are generally exempt under Costa-Hawkins, even if the building was built before 1978.

What is not covered:

• Single-family homes (with no additional unit on the parcel)
• Condominiums (unless the condo was created after the RSO)
• New construction built after September 30, 1978
• Luxury units with base rent above the luxury exemption threshold (periodically adjusted by LAHD)
• Units in a hotel or motel
• Government-subsidized housing subject to other rent restrictions

If you are unsure whether your unit is covered, check the LAHD RSO registration database at housing.lacity.gov.

Annual allowable rent increase

LAHD sets the annual allowable rent increase each year, typically in the spring. The increase is based on a percentage of the current rent and is tied to local CPI. In recent years the allowable increase has ranged from 3% to 4%.

You cannot raise rent above the annual allowable percentage for covered units unless you apply for and receive approval of a larger increase through a formal LAHD petition process (allowed for capital improvements or operating expenses).

You can only raise rent once in any 12-month period for an RSO-covered unit.

Check the current year’s allowable increase at housing.lacity.gov before sending any rent increase notice.

Just-cause eviction requirements

For RSO-covered units, you must have one of the following lawful reasons (just cause) to terminate a tenancy:

Fault-based grounds (tenant is at fault):

1. Nonpayment of rent
2. Violation of lease terms after written notice
3. Nuisance or damage to the unit
4. Criminal activity on the property
5. Refusal to sign a lease extension on the same terms
6. Subletting without permission
7. Unapproved occupants refusing to leave after written notice

No-fault grounds (landlord is removing unit from market): 8. Owner move-in (landlord or qualified family member will occupy) 9. Demolition of the building 10. Ellis Act withdrawal (removing unit from rental market entirely) 11. Substantial rehabilitation requiring tenant to vacate

Simply deciding not to renew the lease at the end of the term is not a recognized just-cause ground. An RSO tenant in good standing has the right to continue their tenancy.

Relocation assistance

For no-fault evictions, tenants are entitled to relocation assistance. The amount depends on the tenant’s income level and length of tenancy, and LAHD publishes the current figures annually.

Owner move-in and Ellis Act evictions have specific relocation payment requirements. Ellis Act evictions additionally require filing with LAHD and have a required 120-day notice period (1 year for seniors and disabled tenants).

Required annual registration

All RSO-covered units must be registered annually with the Los Angeles Housing Department (LAHD). Landlords pay an annual registration fee per unit. LAHD bills landlords, and payment is due by a set deadline each year.

Failing to register has consequences: unregistered units cannot legally receive rent increases, and there are penalties for non-compliance. LAHD tracks RSO units and sends annual notices to registered landlords.

A portion of the registration fee can be passed through to the tenant (currently 50% of the annual fee), but only if the landlord properly notifies the tenant of the passthrough amount.

When a unit becomes vacant (Costa-Hawkins)

Under California’s Costa-Hawkins Rental Housing Act, when an RSO-covered unit becomes voluntarily vacant, the landlord may reset the rent to market rate for the new tenant. The RSO rent cap then re-applies to the new tenancy. You cannot bring the rent above market between tenants, but you can bring it to market at the start of the new tenancy.

Los Angeles versus AB 1482

Both the RSO and AB 1482 (the statewide Tenant Protection Act) may apply to your property, but the RSO is typically stricter. For covered units, follow the RSO rules, which limit increases to the LAHD-set annual allowable rate. The AB 1482 5%+CPI formula does not apply to units already subject to a local rent control ordinance.

General information, not legal advice

The RSO has detailed provisions and administrative processes. For contested evictions, formal petitions, or Ellis Act procedures, consult a California landlord attorney or a Los Angeles landlord association.

1. LAMC § 151.02 RSO coverage: pre-1978 residential units in the City of Los Angeles with 2+ units View official source ↗
2. LAMC § 151.05 Mandatory annual registration with LAHD and payment of registration fee View official source ↗
3. LAMC § 151.06 Annual allowable rent increase set by LAHD; one increase per 12-month period View official source ↗
4. LAMC § 151.09 Just-cause eviction grounds; no-fault eviction relocation assistance View official source ↗