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New Cap On Rent Hikes Takes Effect For Tenants In LA And Orange Counties
Magally Lopez reads the notice saying that her rent will increase by 10% in August 2022.
(
David Wagner/LAist
)
Under state law, a new 8.8% limit on annual rent hikes takes effect Tuesday for many, though not all, tenants in Los Angeles and Orange counties.
The change comes as Southern California renters have seen their housing costs rise as much as 10% over the past year.
What’s changing
The statewide Tenant Protection Act covers renters living in most apartment buildings constructed more than 15 years ago.
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State law requires banks to offer one year of delayed mortgage payments. With that period coming to an end, Bass is asking banks to voluntarily extend relief. -
Under the reforms approved by a majority of City Council members, rent hikes would be capped at 4%, even if inflation in the overall economy runs higher. -
After their more typical wood-framed homes burned, some are now rebuilding with non-combustible materials. And they’re getting discounts from insurance companies.
The law links allowable annual rent hikes with inflation. Because inflation has been cooling in the L.A. area, the legal limit on rent hikes for covered tenants is declining slightly, from 10% to 8.8%.
Why now
The law draws on the local consumer price index from April each year in order to determine new limits every August.
Landlords can add an additional 5% to the local consumer price index (a common measure of inflation) in order to determine legal rent hike limits, so long as the figure doesn’t exceed 10%.
In April 2022, local inflation was running high at 7.9%, triggering the law’s maximum increase of 10%. But with inflation running lower at 3.8% this April, landlords must now observe a new 8.8% limit.
Where to get help
LAist Rent Hike Cheat Sheet
Wondering about rent increase rules in your area? Read our rent hike cheat sheet to find out if you're covered by statewide rent hike limits, or if your city has tougher rent control.
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Keep in mind, renters in L.A. and Orange counties who are covered by the Tenant Protection Act are not legally obligated to pay rent hikes exceeding 8.8% starting this month through the end of July 2024.
Also, many tenants in about a dozen SoCal cities have stronger protections under local rent control laws.
DOES YOUR CITY HAVE RENT CONTROL?
If you live in one of these cities, or an unincorporated area of L.A. County, your housing may be covered by local laws that cap rent hikes below 8.8%. Read our guide for more info.
- Pasadena
- West Hollywood
- Los Angeles
- Inglewood
- Santa Monica
- Cudahy
- Culver City
- Beverly Hills
- Baldwin Park
- Bell Gardens
- Santa Ana
- Pomona
If you still have questions or need help fighting an illegal rent increase, you can reach out to local tenant legal aid providers through StayHousedLA.org.
We’ve also gathered some tips and resources here.
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But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
Senior Vice President News, Editor in Chief
