Local code · Los Angeles

Los Angeles — Allowable Rent Increases

The Los Angeles Allowable Rent Increases, explained in plain English with the controlling citations.

Last reviewed: July 6, 2026

Overview

This page explains how allowable rent increases and cost-recovery passthroughs work under the City of Los Angeles Rent Stabilization Ordinance (RSO) in Chapter XV of the Los Angeles Municipal Code, codified as LAMC § 151.00 et seq. For the broader program, see the Los Angeles Rent Stabilization (RSO) overview. This page focuses on the annual “automatic” increase, individual rent adjustments, and temporary surcharges permitted by ordinance.

The automatic RSO increase is set annually from the local CPI but must fall between a floor of 3% and a ceiling of 8%; the City publishes the figure each year for increases effective July 1 through June 30.

What the RSO allows (and limits)

1) Annual “automatic” rent adjustment (General Adjustment)

The Department must publish the next year’s annual rent increase by May 30 for the 12‑month period beginning July 1. The percentage tracks the CPI-U for Los Angeles–Long Beach–Anaheim for the 12 months ending the prior September 30, rounded to the nearest whole number, but not less than 3% and not more than 8%. The increase applies “without permission” when allowed under the code’s automatic adjustment rules. Cite: § 151.06.D (method, CPI window, 3–8% bounds).
Important 2024 note: For a limited window, the City set the automatic adjustment at 4%, with up to an additional 1% per utility (gas and/or electricity) paid entirely by the landlord, capped at an extra 2%, for increases taken once between February 1 and June 30, 2024. Cite: § 151.34.

2) Individual rent adjustments (just-and-reasonable return)

If the automatic increase does not yield a just and reasonable return, a landlord may apply for an individual rent adjustment. A hearing officer may consider factors including property taxes, reasonable operating and maintenance expenses, extent of capital improvements, housing services, deterioration not caused by ordinary wear and tear, and certain older financing terms. Anti‑speculation rules can bar adjustments based solely on debt service for owners who acquired after October 1, 1978. Cite: § 151.07.B.1–2.
Application and notice procedures are set by the Department and the Rent Adjustment Commission (RAC). See Los Angeles Processes & Procedures for how the City typically handles formal applications.

3) Cost-recovery passthroughs and surcharges

Capital improvement surcharge. Where approved, a landlord may impose a temporary surcharge equal to 1/60th of 50% of the average per‑unit capital improvement cost for up to 6 years, generally capped at $55/month per unit. If the 1/60th formula exceeds the cap, the recovery period may extend until eligible costs are recovered. This surcharge is not added to the unit’s Maximum Adjusted Rent when calculating future automatic increases. Cite: § 151.07.A (Capital Improvements) and cross‑reference to § 151.06.D (automatic increases).
Rehabilitation work surcharge. For qualifying rehabilitation completed on or after January 1, 1999, the landlord may impose a temporary surcharge equal to 1/60th of the average per‑unit rehabilitation cost for up to 5 years (or the loan term if publicly funded and amortized on principal only). The surcharge is capped at $75/month or 10% of the unit’s Maximum Adjusted Rent, whichever is less, and is not included in Maximum Adjusted Rent for computing the automatic increase. Cite: § 151.07.A (Rehabilitation Work) and § 151.06.D reference.
Primary renovation increase. After Department acceptance of a Tenant Habitability Plan, a landlord may seek a permanent increase up to the lesser of: (i) 100% of the average per‑unit primary renovation cost amortized at a Commission‑set term and interest, or (ii) 10% of the unit’s Maximum Adjusted Rent at the time of application. The approved increase must be phased in two equal steps over two years, with Civil Code § 827 notice for each step; special limits apply for lower‑income households. Cite: § 151.07.A (Primary Renovation Work).
Water conservation assessment. During an Emergency Water Conservation Plan, a landlord may pass through 50% of Department of Water and Power penalties as a temporary surcharge (75% for certain non‑submetered mobilehome parks). This surcharge does not count as a rent increase for § 151.06 purposes. Cite: § 151.06.2.
Maximum Adjusted Rent (MAR) definition. Capital improvement and certain other specified surcharges are excluded from MAR for computing later automatic increases, preventing “stacking” through future CPI‑based adjustments. Cite: § 151.02 (Maximum Adjusted Rent) and cross‑references to §§ 151.06–151.08.

4) Temporary and situational limits on increases

COVID‑19 local emergency freeze. The City barred increases to the Maximum Adjusted Rent for occupied RSO units until one year after the termination of the local emergency, unless necessary to obtain a just and reasonable return. Cite: § 151.32.
REAP and enforcement orders. If a building is under an order (e.g., accepted into the Rent Escrow Account Program (REAP)), rent increases—including the automatic increase—are generally prohibited until the Department confirms compliance, plus one additional year, with specific rules for RSO buildings. Cite: § 161.807 cross‑referencing § 151.06.
State law interplay. California’s Tenant Protection Act caps most rent increases at 5% + CPI or 10%, whichever is lower, but it does not apply where a local ordinance like the RSO provides more protective limits. Cite: Civil Code § 1947.12(a); (g)(1)(A) Los Angeles CPI; local‑control clauses.

5) Registration, notices, and process touchpoints

Before taking an increase or applying for an individual rent adjustment, confirm your property is registered and fees are current with the Housing Department. See the Los Angeles Registration & Compliance page for program enrollment.
Individual rent adjustments and most passthroughs require a Department application and RAC‑guided process. See Los Angeles Forms & Applications and Los Angeles Processes & Procedures.
For work that triggers a Tenant Habitability Plan or involves building permits, coordinate early with Los Angeles Plan Check & Review. Primary Renovation Work increases require a Department‑accepted plan.
Provide rent-increase notices consistent with state law. The RSO references Civil Code § 827 notice for phased primary‑renovation increases, and statewide rent caps also require § 827‑compliant notices. Cite: § 151.07.A (Primary Renovation Work); Civil Code § 1947.12(e).

Key RSO increase types and caps

Increase or Surcharge	Core Rule	Duration/Cap	Notes	Code Reference
Annual automatic adjustment (General Adjustment)	CPI‑based, rounded; set annually; floor 3%, ceiling 8%	Published by May 30 for Jul 1–Jun 30	Applies “without permission” when allowed under § 151.06.D	§ 151.06.D (CPI method and 3–8%)
Temporary 2024 setting	One increase up to 4%; +1% per gas/electric paid by landlord (max +2%)	Applies 2/1/2024–6/30/2024	Repeals after June 30, 2024	§ 151.34
Capital improvement surcharge	1/60 × 50% avg per‑unit cost	Cap $55/mo; up to 6 years; period may extend if needed	Not added to MAR for future automatic increases	§ 151.07.A; § 151.06.D cross‑ref; MAR definition in § 151.02
Rehabilitation surcharge	1/60 avg per‑unit cost (post‑1999 rules)	Up to 5 years; cap $75/mo or 10% of MAR, whichever is less	Not added to MAR; special rules for public‑funded loans	§ 151.07.A; § 151.06.D cross‑ref
Primary Renovation increase	Lesser of amortized 100% of cost or 10% of MAR	Permanent; imposed in two increments over 2 years	Requires accepted Tenant Habitability Plan; § 827 notices	§ 151.07.A (Primary Renovation Work)
Water Conservation penalty passthrough	50% of LADWP penalties (75% in certain non‑submetered mobilehome parks)	Temporary surcharge	Not a “rent increase” for § 151.06	§ 151.06.2
COVID local emergency freeze	No increase to Maximum Adjusted Rent during emergency + 1 year	N/A	Just‑and‑reasonable return exception	§ 151.32
REAP / enforcement order impacts	No rent increases until compliance + 1 year	N/A	Automatic increases held back one year after compliance	§ 161.807 with § 151.06 cross‑ref

Checklist

Confirm the unit is RSO‑covered and registered with LAHD; fees paid. See Los Angeles Registration & Compliance.
Check whether any increase is barred (e.g., COVID‑era freeze under § 151.32, REAP status under § 161.807).
If taking the annual automatic increase, verify the published percentage and effective window (Jul 1–Jun 30) and confirm you are not stacking excluded surcharges into MAR. Cite: § 151.06.D; § 151.02 (MAR).
If seeking an individual adjustment (just‑and‑reasonable return), assemble documentation of eligible factors; file per RAC/Department procedures. Cite: § 151.07.B.
For capital, rehabilitation, or primary renovation cost recovery, confirm the correct formula, caps, duration, and required Department approvals; if Primary Renovation, ensure the Tenant Habitability Plan is accepted. Cite: § 151.07.A.
Serve rent‑increase notices consistent with Civil Code § 827 and any RSO‑specific direction in your approval letter. Cite: § 151.07.A (notice references); Civil Code § 1947.12(e).
If your property had code orders or REAP, confirm Department clearance date; track the extra one‑year no‑increase period. Cite: § 161.807.

Risks & Ambiguities

Issue	Why it matters	What to verify
Counting the CPI window	The annual percentage is tied to a specific 12‑month CPI period and is rounded; errors can misstate the allowed increase.	Check the City’s May 30 publication and the CPI‑rounding rule in § 151.06.D.
MAR vs. surcharge “stacking”	Some surcharges don’t increase MAR, so later CPI bumps can’t include them.	Confirm whether your surcharge is excluded from MAR under § 151.02.
COVID and REAP timing	Increases are blocked during emergencies or while under orders, with extra waiting periods.	Determine local emergency status and REAP compliance date per §§ 151.32, 161.807.
Utility add‑ons in 2024	The 4% + utility adders were time‑limited.	Confirm the window in § 151.34 and do not apply outside that period.
Primary Renovation vs. Capital Improvement	Different formulas, caps, and permanence; misclassification can trigger compliance issues.	Match scope and documentation to § 151.07.A categories; ensure THP acceptance where required.
State cap overlap	AB 1482 caps may apply to non‑RSO units; RSO controls where more protective.	For non‑RSO units, check Civil Code § 1947.12 and CPI region definition.

Plain-English Summary

Most RSO apartments can take one automatic annual increase the City sets from inflation, but it must stay between 3% and 8%. Bigger or different increases require approvals and are usually tied to documented costs (capital, rehab, or primary renovation) with strict formulas, caps, and time limits. Some surcharges are temporary and don’t boost the “base rent” for future CPI raises, and increases are blocked during certain enforcement actions or local emergencies.

Information Gaps

“Banked” rent increases (carrying forward unused annual adjustments): Not found in retrieved materials.
Systematic Code Enforcement Program (SCEP) fee passthrough specifics: Not found in retrieved materials.
Smoke detector surcharge section number and full rules: Only partial references recovered; Verify with the jurisdiction.

Source References

LAMC RSO — Annual CPI method and 3–8% bounds; publication by May 30; automatic increase framework: § 151.06.D.
LAMC — Temporary 4% automatic setting with utility adders (Feb–Jun 2024): § 151.34.
LAMC — COVID local emergency freeze of increases: § 151.32.
LAMC — Individual rent adjustments; just-and-reasonable return factors; procedures: § 151.07.B.
LAMC — Capital improvement surcharge (1/60 × 50%, $55 cap, up to 6 years; not in MAR): § 151.07.A; MAR cross‑reference to § 151.06.D.
LAMC — Rehabilitation surcharge (1/60, $75 or 10% MAR cap, up to 5 years; not in MAR): § 151.07.A; MAR cross‑reference to § 151.06.D.
LAMC — Primary Renovation Work increases (≤10% MAR or amortized 100%, two‑step implementation, § 827 notices): § 151.07.A.
LAMC — Water Conservation penalty passthrough; not a § 151.06 rent increase: § 151.06.2.
LAMC — MAR definition and exclusions relevant to future automatic increases: § 151.02 (Maximum Adjusted Rent).
LAMC — REAP impacts; no increases until compliance + 1 year; automatic increase delay: § 161.807 (with § 151.06 cross‑ref).
State law — Tenant Protection Act cap and CPI region definition: Civil Code § 1947.12(a), (g).
LAHD Code access (official library): Los Angeles Municipal Code — RSO Chapter (§ 151). https://codelibrary.amlegal.com/codes/los_angeles/latest/lamc/0-0-0-196060

Also see:

Sources

Retrieved passages

Los Angeles Zoning Code (Section 151.06) High relevance
Los Angeles Zoning Code (Section 151.06) High relevance
Los Angeles Zoning Code (section shall) High relevance
Los Angeles Zoning Code (section shall) High relevance
Los Angeles Zoning Code (section shall) High relevance
Los Angeles Zoning Code (section shall) Medium relevance
Los Angeles Zoning Code (Section 151.06) Medium relevance
Los Angeles Zoning Code (section shall) Medium relevance
Los Angeles Zoning Code (section or) Medium relevance
Los Angeles Zoning Code (section shall) Medium relevance
Los Angeles Zoning Code (chapter and) Medium relevance
Los Angeles Zoning Code (Title and) Medium relevance
Los Angeles Zoning Code (section shall) Medium relevance
Los Angeles Zoning Code (Section 151.06) Medium relevance

Cited sections

Official Los Angeles code library

Frequently asked questions

How is the annual RSO increase calculated each year in Los Angeles?

The City sets it from the local CPI for the prior 12 months ending September 30, rounded to the nearest whole number, but not less than 3% and not more than 8%. The Department publishes the figure by May 30 for the period July 1 through June 30. Cite: § 151.06.D.

Can I add a surcharge for approved capital improvements on top of the annual increase?

Yes—if approved, you can add a temporary surcharge equal to 1/60 of 50% of the average per‑unit cost, capped at $55/month for up to 6 years. This surcharge does not increase the unit’s Maximum Adjusted Rent used to compute future automatic increases. Cite: § 151.07.A and MAR treatment under § 151.06.D/§ 151.02.

What’s the difference between “Primary Renovation” and “Capital Improvement” increases?

Primary Renovation Work is a defined, larger-scope project requiring an accepted Tenant Habitability Plan, and it can support a permanent rent increase up to the lesser of amortized 100% of cost or 10% of the MAR, imposed in two steps over two years. Capital improvements use a temporary surcharge formula (1/60 × 50%) with a monthly cap and limited duration. Cite: § 151.07.A.

Are rent increases allowed while a building is in REAP or under certain enforcement orders?

Generally no. Rent increases—including the automatic increase—are barred until the Department confirms compliance, and then an additional one‑year no‑increase period applies for RSO properties. Cite: § 161.807 (RSO cross‑reference to § 151.06).

Did Los Angeles temporarily cap increases at 4% in 2024?

Yes. From February 1 to June 30, 2024, the City allowed one automatic increase up to 4%, with up to an additional 1% per landlord‑paid gas/electric utility (max +2%). This authority sunset on June 30, 2024. Cite: § 151.34.

Can I seek a larger increase if my operating costs are unusually high?

Possibly. You can apply for an individual rent adjustment to achieve a just and reasonable return. Hearing officers consider specific factors like taxes, maintenance, and capital improvements, within RAC‑set procedures. Cite: § 151.07.B.

Do I have to give special notice for phased primary‑renovation increases?

Yes. Approved primary renovation increases must be imposed in two equal increments over two years, and each increment requires notice under Civil Code § 827. Cite: § 151.07.A (Primary Renovation Work).

How does the state rent cap relate to the RSO in Los Angeles?

For RSO‑covered units, the City’s rules apply and are often more protective than the state cap. For non‑RSO units, the state cap—5% + CPI or 10%, whichever is lower—may apply. Cite: Civil Code § 1947.12(a), (g).

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