Los Angeles just significantly reformed its Rent Stabilization Ordinance (RSO) — and the changes are largely good news for tenants. The LA City Council approved a new formula that lowers the maximum allowable rent increase and eliminates several add-ons that landlords previously used to push rents higher. Here's exactly what changed and what it means for your lease.
Who Does the RSO Apply To?
The Los Angeles RSO (also called LARSO) applies to residential rental units that were built on or before October 1, 1978, with some exceptions. If your building was built before 1978 and has 2 or more units, you are almost certainly covered. Newer buildings may fall under California's statewide AB 1482 rent cap instead.
The New Rent Increase Formula (Effective July 1, 2026)
Starting July 1, 2026, the annual allowable rent increase for RSO units is calculated using 90% of the Consumer Price Index (CPI) — down from the previous 100% of CPI.
The new increase is capped between a floor and ceiling:
- Maximum (ceiling): 4% — down from the previous maximum of 8%
- Minimum (floor): 1% — down from the previous minimum of 3%
This means even in a high-inflation environment, your RSO landlord cannot raise your rent more than 4% per year.
Interim Rule: Now Through June 30, 2026
For rent increases not yet noticed between June 1, 2025 and June 30, 2026, a temporary 3% cap applies. If your landlord issued a notice during this period, the maximum increase is 3%.
What Was Eliminated — Effective February 2, 2026
Two add-ons that landlords previously used to increase rents beyond the base formula have been permanently eliminated:
- 1% utility reimbursement increase — Landlords in master-metered buildings who paid tenants' utilities could previously add 1% on top of the base increase. This is now gone.
- 10% increase for additional dependents — Landlords could previously raise rent by 10% when an additional dependent moved in. This add-on is eliminated.
What About Relocation Fees?
Relocation fees (owed to tenants displaced by owner move-ins or substantial renovations) continue to increase annually, indexed to 100% of CPI — not the reduced 90% formula. This keeps tenant protections strong when displacement occurs.
What Your Landlord Cannot Do
- Raise your rent more than once per 12-month period
- Increase rent above the allowable percentage without LAHD approval
- Add utility or dependent surcharges (as of February 2, 2026)
- Evict you without just cause if your unit is RSO-covered
How to Check If Your Unit Is RSO-Covered
You can look up your unit on the LAHD website using your address. If you believe your landlord raised your rent illegally, you can file a complaint with the Los Angeles Housing Department (LAHD) at no cost.
Looking for a new rental in Los Angeles? Browse LA rentals on EMLAKIE — all listed directly by landlords, no broker fees.