It’s the first of the month, which means your rent is most likely due. But today in particular also marks the start of the state’s new rent hike limit calculations for the next year. So how exactly will that impact you?
Let’s actually start back in 2019, when the Tenant Protection Act passed in California, basically limiting how much property owners and landlords could increase their tenants’ rent annually. According to that relatively new legislation, which takes inflation into account, rent in the state could increase by 5% plus the change in the local cost of living each year. The total increase also cannot be above 10%.
This year, in L.A. County, that calculation amounted to a 8.9% rent cap increase as of today—just a tiny bit over last year’s 8.8%.
According to the U.S. Bureau of Labor Statistics’ consumer price index back in April, the local cost of living in Los Angeles has changed by 3.9%. Add the 5% allowed increase to that number and you’ve got 8.9% for the year.
Although the above-mentioned guidelines apply to the vast majority of rentals in California, they do exclude homes that were built in the last 15 years, which may be subject to higher rent increase caps.
But there’s more: In the City of Los Angeles specifically, there’s a local Rent Stabilization Ordinance that overrides some of those state-set numbers for certain apartments. The short version: If your City of L.A. apartment falls under local rent control protections, your landlord can only raise your rent between 4% and 6%. So who exactly does that apply to? “The City of L.A.’s rent control restrictions, called the Rent Stabilization Ordinance, cover properties built on or before October 1, 1978; units built after July 15, 2007, that replaced demolished rental units built on or before October 1, 1978, also may be covered,” explains the Los Angeles Times.
Unsure whether your L.A. home falls under the Rent Stabilization Ordinance? Just input your address right here to find out. And if you’re outside of the City of L.A., LAist has a guide to local rent increase laws across the county.
The moral of the story is that most rents will increase in town each year—but, hopefully, not by too much more than normal.