20 Jan LA Won’t Allow Rent Increases For Most Tenants Until Next Year
Rent increases are on the minds of most landlords in the Los Angeles area but, those landlords who own rent-stabilized units, are prohibited from raising the rent until next year.
Thanks to the emergency order signed by LA Mayor Eric Garcetti in March 2020, landlords are not allowed to raise the rent on most tenants until 2023, and possibly beyond that as well.
Although the move protects most tenants in the city of Los Angeles, it’s bad for landlords because it places them in an untenable situation. After all, landlords still have to pay utilities plus mortgages and many are wondering where the money is going to come from?
LA Vs. The Rest Of California
Los Angeles stands in stark contrast to the rest of California where rents are set to climb exponentially over the next two years.
For example, Orange County rents are projected to rise by $410 per month over the next two years to an average of $2,849 per month in 2023, while other SoCal cities including Irvine, Long Beach, and San Diego reflect similar increases, much to the disdain of their tenants.
Why Are Rents Increasing?
There’s no denying that the Pandemic when combined with lockdowns hit many landlords in California hard.
Landlords in Los Angeles are eager to raise rents because they see their costs going up across the board but Mayor Garcetti is eager to use all of the tools that he can to keep costs low for Angelenos, especially while the Pandemic is still active.
“Angelenos should be focused on staying healthy and staying safe — not whether they can afford their home when they’re hurting financially as a result of this virus,” – Mayor Garcetti
More Tenants Staying In Their Rentals
With strict measures in place to stop landlords from raising the rent, Los Angeles will likely see more tenants staying in their rentals, eager to avoid paying double or triple for comparable rental properties elsewhere.
Most landlords are following the rules even though some stories do slip through the cracks from time to time about landlords taking their tenants to eviction court for non-payment of rent.
Ultimately, every landlord is eager to have the same pre-pandemic flexibility that they once enjoyed, it’s unlikely that they will see the rental market go back to the way it once was anytime soon.
Contact MW Real Estate Group
At MW Real Estate Group, we specialize in Los Angeles multifamily property management.
Our team can handle all of your property management needs, saving you the time, money, and hassle of managing your property yourself.
To learn more about the services that we can offer you, contact us today by calling (213) 927-2117 or click here to connect with us online.