The Rent Stabilization Ordinance (RSO) in Los Angeles was enacted in 1978 to protect tenants from unreasonable rent hikes. However, the city has changed dramatically since then, and the outdated law no longer meets current housing needs. As housing costs outpace wages and more people are pushed out of the city, calls to modernize the RSO are growing louder.

Rents Are Rising Faster Than Wages

Housing costs in Los Angeles have increased at double the pace of wages. Most tenants now spend far more than 30 percent of their income on rent, placing them in a financially vulnerable position. This affordability crisis is one of the driving forces behind the city’s population decline, as people are increasingly unable to afford living in LA. Updating the RSO could help slow this trend by placing limits on rent increases.

The 1978 Cutoff Date No Longer Makes Sense

The current ordinance only applies to rental units built before October 1978. As buildings age out of eligibility, fewer apartments fall under rent control protections each year. To make the ordinance relevant, the cutoff date should be updated to 2010, allowing units that are at least 15 years old to be included. Additionally, the cutoff date should be automatically revised every five years to keep the ordinance aligned with the age of the housing stock.

Single-Family Homes & New Rentals Must Be Covered

Real estate companies are increasingly purchasing single-family homes and renting them out. Despite this shift, such properties are currently exempt from the RSO. To close this gap, the ordinance should extend to all rental housing types, including single-family homes, condominiums, townhomes, duplexes, and accessory dwelling units. Properties with separate residences on the same lot and residential units inside commercial buildings should also be included.

Stopping Exploitation of Rental Loopholes

Some landlords exploit legal gray areas to increase profits. For instance, brokers or landlords subdivide apartments into smaller units by installing temporary walls, renting out each section separately. This practice, while illegal, continues due to lack of oversight. Once a full-paying tenant arrives, the partitions are removed. Strengthening enforcement and closing such loopholes must be part of the RSO update to protect tenants from unsafe and exploitative housing arrangements.

Ending Vacancy Decontrol

Under current laws, landlords can significantly raise rents when a tenant leaves a rent-stabilized unit. This process, known as vacancy decontrol, creates a strong incentive to push tenants out. The updated ordinance should ensure that rent stabilization protections remain in place even after tenants move out or are evicted. This would help preserve affordability across the city’s housing stock.

Limiting Rent Hikes & Utility Charges

Future rent increases should be strictly limited to ensure affordability. Proposed changes would cap annual rent increases at 3 percent and require that any hikes be tied to documented costs. Landlords should not be allowed to raise rents due to rising utility expenses. These measures would bring greater transparency and fairness to the rent-setting process.

Strengthening Tenant Protections

Tenants need more protection from harassment and discrimination. The updated ordinance should allow for the prosecution of landlords who violate these rights. A key recommendation is to adopt provisions from the Tenant Bill of Rights proposed by the Keep LA Housed coalition. This includes a legal right to live free from harassment and discrimination in housing.

Supporting Tenants Through Legal Aid & No Buyouts

Landlords sometimes offer tenants money to vacate rent-stabilized units, a practice known as Cash-for-Keys. While this may seem like a voluntary agreement, it often pressures tenants to leave affordable homes. The updated ordinance should ban such buyouts and ensure tenants have the automatic right to city-provided legal counsel in any eviction case. This would level the playing field between landlords and tenants in court.