Rent Control: a paradoxically age old standard that is constantly changing. Rent Control is the laws that govern the amount and frequency landlords may raise rent. The rules are kind of constantly changing, and sometimes it’s hard to keep up. Don’t worry; we’ve got you.
According to nolo.com - on January 1, 2020, a new law capped rent increases across California at either 5% plus the increase in the regional consumer price index (CPI), or 10% of the lowest rent charged at any time during the 12 months before the increase - whichever is less. Additionally, rent may only be increased twice a year. This law - AB 1482 - does not override more restrictive city and county Rent Control.
Which brings us to LA, and more specifically the South Bay. LA County is stricter than the rest of the state. Only one rent increase is allowed every 12 months based on the regional CPI. Effective July 1, 2020, the annual allowable increase is 3%. That’s not too shabby for the renter.
Landlords may be frustrated, but there’s a silver lining.
Our neighborhoods host an array of both landlords and tenants; sometimes owners also rent and are therefore both. The great thing about Rent Control for both parties is the longevity of renters. Gradual rent increases accommodate the ability for a renter to pay, which means they’ll stay longer. Even if a landlord is getting less monthly than maybe they want, having a long-term renter prevents empty months (money) and turnover (time, money, headache).