What does the new rent control level mean for you?
Rent control is expected to climb to 4 percent this year in Los Angeles, the highest level in more than a decade! So, what does this mean for you as a landlord?
Put simply, it means you can raise the rent as early as July.
In Los Angeles, rent has been capped at 3 percent in accordance with the Rent Stabilization Ordinance. Beginning this summer, the limit will be raised to 4 percent.
How did Los Angeles come up with this number? Under the ordinance, landlords are permitted to raise the rent between 3 and 8 percent every year in relation to inflation and the general cost of living. For the past ten years, the cap has been set at three.
Okay, okay. Don’t get too excited. A one percent increase isn’t exactly paying for your new yacht. It’s the difference between $2000 per month rent and $2020. But check behind the scenes and you may see the hike attributed to a stronger economy and decreases in unemployment - this means a wider pool of potential tenants for you!
Have an open vacancy? Want free marketing? Let Home Rentals LA help you tap into this new market.
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