Rental Properties

How to Deal with Tightening Regulations as a Los Angeles Landlord

Los Angeles is known for its tenant-friendly laws and regulations, which include caps on rent increases, tenant anti-harassment ordinances, and other safety precautions that protect tenant rights. But as an LA landlord, keeping up with changing and tightening rental regulations can feel like a full-time job

Managing and maintaining a legally compliant rental property in LA is of utmost importance. Violation of laws or ordinances could result in hefty fines and other penalties. And when these regulations change frequently, staying up-to-date with them is essential. 

In this article, we will review what regulations change for Los Angeles landlords in 2025 and how to deal with them, as well as future changes. 

What Changes for LA Landlords in 2025?

Staying on top of changing and tightening regulations as a Los Angeles landlord is just part of owning rental properties. Here are some of the most significant changes landlords must implement this year. 

Positive Rent Reporting

As of April 1, 2025, landlords with more than 15 rental units in Los Angeles have the responsibility of reporting on-time rent payments from tenants to a nationwide consumer report agency. 

This can help tenants build and improve their credit scores, benefiting their overall financial profiles to help them one day buy a home of their own. It can also have a positive impact during tenant screening processes

Tenants can opt out of having their landlord report on-time payments, but can opt in again after six months. If a fee is charged to the landlord to make a report, the landlord may request payment of the exact cost from the tenant every month. 

Limitations on Security Deposits

Landlords may not charge more than one month’s rent for security deposits in Los Angeles. The landlord must also pay 4.32% interest on the security deposit either monthly or annually, directly to the tenant or as a credit to the rent. 

Additionally, security deposits may not be used to pay for items or services other than the required materials and professional services necessary for repairs or cleaning. Carpet cleaning costs, unless documented and specified as explicitly damaged by the tenant, are not considered applicable. 

Landlords must also document the state of the property before and after a tenant moves in through photographs. The photos must be taken at three separate occurrences:

  1. Before the tenant moves in.
  2. After the tenant moves out, but before cleaning and repairs.
  3. After cleaning and repairs are done.

An itemized list of costs deducted from the security deposit must be sent to the tenant within 21 days after they have moved out. 

Rent Increase Allowance

In some instances, Los Angeles experiences rent control. In some cases, rent increases are limited, depending on the type of property and the number of units a landlord owns. 

For example, properties built before February 1, 1995, are allowed a rent increase of 2.565% in 2025. 

However, landlords that own ten units or fewer, or otherwise known as Small Property Landlords, can increase rent by 3.565% in 2025. 

Luxury landlords who earn at least $4,000 per month in rent and own at least 25 units of two bedrooms or more can increase rent by 4.565% in 2025. 

Revised Eviction Proceedings

In the case of a tenant who breaches a lease agreement, landlords have the right to evict the tenant from the rental property. However, the eviction proceedings must be followed exactly in order for the eviction to be considered legal. 

One change to the eviction procedure includes an increase in the time tenants have to respond to an eviction notice. Instead of five business days, tenants now have ten business days to respond to a landlord’s notice of eviction. 

Landlords must also file the eviction notice with the county within three days of serving the notice to tenants. 

Lastly, Los Angeles has implemented protections against tenants who experience income loss due to wildfires in California. These protections prohibit landlords from evicting tenants who have not paid rent due to the wildfires between February 1 and July 1, 2025. 

How to Deal with Tightening Regulations as an LA Landlord

Collecting rent and ensuring your rental property is up to code are just some of the responsibilities you have as a landlord. You’re also responsible for being in compliance with often-changing rules and regulations. 

Here’s how to deal with them. 

Stay Up to Date

It’s important to constantly educate yourself about changing rules and regulations in Los Angeles if you own rental property. There are websites that send out newsletters with updates, and professional networks you can join to discuss and learn about them. 

The more effort you put into educating yourself about local real estate laws and changes, the more likely you are to stay compliant. 

Make a Plan to Implement Changes

While learning about new regulations and changes is important, learning how to implement them is just as essential.

Keep an open line of communication with your tenants and keep them informed of any changes to the lease agreement or your operations. They should also know about their rights as tenants and protections against them. 

Work with a Professional Property Manager

What if you could work with someone whose job is to stay up to date and implement changes to comply with rules and regulations? That’s exactly what a property manager does—along with managing your rental property, of course. 

A property manager allows you to sit back, relax, and have confidence that your rental property is being managed and maintained to maximize your passive income

It’s the number one solution for Los Angeles landlords who don’t want a full-time job managing their rental property investments and tenants. 

Stay on Top of LA Rent Regulations with Lotus Property Services

Are you feeling overwhelmed by the constant changes in rules and regulations when it comes to tenant-landlord laws in Los Angeles? You’re not the only one! 

As LA’s leading property management company, Lotus Property Management, works with hundreds of landlords to keep their rental properties and businesses compliant with local laws and regulations while also maximizing their rental income.  

Contact us to see how our team of real estate professionals can help you run a compliant rental property in LA today!

Lotus Property Service

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