Landlords allowed up to 6 percent rent increase starting February 2024.
By Star Eisenberg, Online Editor
The Los Angeles City Council voted 10-2, approving a proposal allowing landlords to increase rent for rent stabilized units up to 4 percent, or 6 percent if the landlord covers utilities. The proposal heads to the city attorney’s office for review and a subsequent council vote. Reassessment and recommendations for a permanent plan are expected after June 30.
“This is a very difficult spot that we’re in,” said Councilmember Bob Blumenfield. “I’m very sympathetic to both sides – trying to figure out how we can, in effect, create a compromise that nobody’s going to like, but will move us forward in a way.”
Rent control regulates the maximum rent and conditions for tenant eviction. The city's Rent Stabilization Ordinance (RSO) applies to pre-1978 housing, limiting increases.
The approved proposal impacts nearly three-quarters of the city’s rent-controlled apartments. Without the City Council's approval, existing rules would allow for up to a 9 percent increase on rent-controlled properties.
“If we increase rent, people are going to get evicted, and we’re not going to stop this eviction to homelessness pipeline,” said Councilmember Eunisses Hernandez.
Increases in rent for RSO properties in Los Angeles have been frozen since March 2020. However, the COVID-era rent freeze expires January 31, 2024 marking the first allowed rent hikes since the pandemic began.
Tenants argue that the freeze aided affordability during high inflation. During the City Council's public comments, resident Scott G. questioned the system's fairness, while landlords like Larry Larson claim that rising utility and maintenance costs, combined with the inability to raise rents, have created financial hardships.
“A lot of landlords are very predatory on college kids,” said Brandon Smiley, a second-year student at Valley. “They definitely take advantage of the fact that a lot of people need something near here.”
According to Rent Group Inc., the average rent for Los Angeles apartments ranges from $2,248 and $3,690. The average cost of a 1-bedroom apartment is currently $2,730. With the applied rent increase and other allowable surcharges (not including utilities), the new monthly rent payment is estimated to total $2,843.64.
“We are in a matrix of scammers, politicians, and a government of people who sit here and take advantage in front of our faces,” said Marvo, a first-year student at Valley. “Everything is just expensive.”