The City of Los Angeles announced this week that they will be approving a 4 percent rent increase for the period of July 2019-July 2020.
Los Angeles is one of several Southern California communities that has had an active rent control ordinance for a long time and the news of their 4 percent rent increase shocked everyone since rent increases in the City of Los Angeles have been capped at 3% for about 12 years.
Why The Rent Increase?
Yes, it’s true that L.A. is one of the most expensive places to live in Southern California so the big question is why now? The answer to this question is tied to their Rent Stabilization Ordinance which determines how much rents can be raised each year.
This years Los Angeles rent increase is notable because the city is still struggling with building affordable housing and many people are already living on the street but the city felt that the economy was strong enough to merit a 4 percent increase for the12 month period.
An additional increase of 1 percent doesn’t amount to much on paper—if a tenant were paying $1,500 in rent now, it would be the difference between $1,545 and $1,560, once the allowable rent hike goes into effect.
Still, in a pricey housing market like Los Angeles, even tiny rent increases can have an impact on the ability of residents to afford payments. A 2017 study from Zillow found that just a 5 percent uptick in rental pricescould leave 2,000 people homeless in LA.
What’s Next For California Renters?
The 4% increase caught many people off guard but our elected officials are still moving forward with their desire to have statewide rent control as soon as possible. Click here to read our recent rent control update!
If you’re a property owner in Salinas, or elsewhere in California, you owe it to yourself to follow this issue closely so you can stay on top of what’s happening with rent control in the Golden State because your livelihood and the future of renters in this state also depend on what the politicians do next.
Contact 36 North Property Management
For more information on the latest news affecting your rental property, or to speak with us about our property management services, contact us today by calling (831) 484-4604 or click here.