Zoe Alvarez
California is a renter-friendly state, and Los Angeles is subject to a multitude of renter protection laws. While California does not require landlords to have a business license, Los Angeles landlords must register their rental properties annually with the Los Angeles Housing Department. This is to monitor and enforce compliance with local housing laws. Before renting, it is important to understand the complexities of the LA rental market and local regulations. For example, LA laws require rental properties to meet basic habitability standards, including functional plumbing, heating, and electrical systems, and to be free from pest infestations. Additionally, landlords must provide a Notice of Rent Increase, Notice of Entry, Notice of Termination, and Disclosure Notices.
| Characteristics | Values |
|---|---|
| Do you need a license to rent in Los Angeles? | No, California does not require landlords to have a business license. However, some cities may require a license to rent out units within city limits. |
| Rental laws | Renters in Los Angeles can take legal action to protect themselves and their homes. Renters can exercise their rights if landlords fail to keep the rental property safe and livable. |
| Business tax | Rental income is considered "business revenue" and is subject to a business tax. |
| Business tax exemption | If you receive rental income from 3 or fewer units throughout the city, you are not liable for business taxes. |
| Business tax certificate | If you receive rental income from residential units within the city limits, you are required to obtain a business tax certificate from the Office of Finance. |
| Rent increase notice | For rent increases of 10% or less, a 30-day notice must be given. For increases over 10%, a 60-day notice is required. |
| Notice of entry | Landlords must give 24 hours' notice before entering a tenant's unit, except in emergencies. |
| Notice of termination | Generally, a 30- or 60-day notice is required, depending on the type of lease and reason for termination. |
| Disclosure notices | Disclosure notices include information about lead-based paint for properties built before 1978, mold, bedbugs, and smoking bans. |
| Rent control | Los Angeles has rent control laws that limit annual rent increases to 5% plus the local inflation rate, with a maximum cap of 10%. |
| Eviction protections | Evictions require "just cause" after a tenant has lived in the property for 12 months. Landlords must provide relocation assistance depending on the tenant's age, income, and length of residency. |
| Rental application | Landlords may require information such as employment history, past landlords, Social Security number, and driver's license number. They may also run a background and credit check. |
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What You'll Learn
Los Angeles rental laws
- Notice of Rent Increase: For rent increases of 10% or less, landlords must give a 30-day notice, and for increases over 10%, a 60-day notice is required.
- Notice of Entry: Landlords must give a 24-hour notice before entering a tenant's unit, except in cases of emergencies.
- Notice of Termination: Depending on the type of lease and reason for termination, a 30- or 60-day notice is generally required.
- Disclosure Notices: This includes disclosure of lead-based paint for properties built before 1978, mold disclosure, bedbug information, and other relevant information.
Furthermore, landlords in Los Angeles must register their rental properties annually with the Los Angeles Housing Department and pay a fee of $35.52 per unit per year for systematic code inspections. This allows the city to enforce compliance with local housing laws and ensure that rental properties meet basic habitability standards, including functional plumbing, heating, and electrical systems, as well as being free from pest infestations.
While California does not require landlords to have a business license, the city of Los Angeles considers renting dwelling units as a business activity subject to a business tax. Therefore, landlords in Los Angeles may need to obtain a business tax certificate from the Office of Finance and report rental revenue accordingly.
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Rent increases and notices
Rent Increases:
Los Angeles has rent control restrictions in place to limit annual rent increases. As of August 2024, the maximum allowable annual rent increase is 8.9% (a combination of a 5% base increase and a 3.9% increase based on the local Consumer Price Index, or CPI). These figures are subject to change annually; for instance, from August 2025 onwards, the maximum allowable increase will be 8.0% (5% base + 3.0% CPI).
Notices:
Landlords in Los Angeles are required to provide tenants with various notices, including:
- Notice of Rent Increase: For rent increases of 10% or less, landlords must give tenants a 30-day written notice. If the increase exceeds 10%, a 60-day or 90-day written notice is required.
- Notice of Entry: Landlords must provide tenants with 24 hours' notice before entering their unit, except in emergency situations.
- Notice of Termination: Depending on the lease type and reason for termination, landlords typically need to give a 30- or 60-day notice. If the tenant has lived in the property for less than a year, a 30-day notice is sufficient.
- Disclosure Notices: Landlords must disclose specific information, such as the presence of lead-based paint for properties constructed before 1978, mold issues, and bedbug information.
- Rent Stabilization Notice: For properties under the Rent Stabilization Ordinance (RSO), landlords must provide notice of rent increase limitations and eviction protections at the start of the tenancy and with each renewal.
- RSO Certificate: Annually, landlords must serve tenants with the RSO Certificate, confirming the property's registration with the Los Angeles Rent Registry.
- Notice of Right to Counsel: Beginning August 20, 2025, landlords must provide tenants with this notice at the beginning of their tenancy, and it must be in the tenant's primary language. This notice must also be attached to any eviction or termination notices.
It is important to note that these regulations are subject to change, and landlords and tenants should stay informed about the latest updates to Los Angeles rental laws.
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Rental application process
The rental application process in Los Angeles involves several steps, and being prepared can increase your chances of securing the rental property you desire. Here is a step-by-step guide to help you navigate the process:
- Create a Criteria List: Before starting your search, it is essential to identify your priorities and preferences. Consider factors such as distance from work or school, pet policies, laundry facilities, included appliances, crime levels, proximity to amenities, and public transportation options. Having a clear idea of what you want will help narrow down your search.
- Start the Search: Begin your search online to get a sense of the rental rates in your desired areas. Utilize various sources, including online listings, newspaper classifieds, rental magazines, bulletin boards, and even driving around your target neighbourhoods to look for posted ads. Contact landlords and schedule appointments to tour the properties that interest you.
- Check for Problems and Ask Questions: When viewing potential rental properties, be vigilant for any issues. Look for signs of leaks, mould, or pest infestations. Inspect for broken fixtures, wall damage, or tile damage. Ask the landlord or property manager questions to address any concerns or clarifications you may have.
- Make a Good Impression: Building a positive relationship with the landlord is crucial. Remember that they are evaluating you as a potential tenant, just as you are evaluating the property. Be polite, professional, and reliable to increase your chances of being chosen as a tenant.
- Gather Necessary Documents: Before submitting your rental application, ensure you have all the required documents readily available. These typically include proof of income (pay stubs or bank statements), employment verification, references from previous landlords, and identification documents such as a driver's license or passport.
- Complete the Rental Application Form: Provide accurate and detailed information on the rental application form. This typically includes personal details, employment history, rental history, and references. Be prepared to authorize the landlord to conduct a background and credit check, for which they may charge a fee.
- Submit the Application and Await Review: Submit your completed application, supporting documents, and pay any associated application fees. The review process can vary in duration, so be patient and avoid applying to multiple properties simultaneously to avoid confusion. If you haven't received a response within a reasonable timeframe, politely follow up with the landlord to inquire about the status of your application.
- Review and Sign the Lease Agreement: If your application is approved, the landlord will provide a lease agreement. Carefully review the terms and conditions, including rental payment details, lease duration, maintenance responsibilities, and any additional provisions. Seek clarification on any unclear clauses before signing. At this stage, you will typically be required to pay a security deposit and any applicable move-in costs.
- Schedule a Move-in Inspection: Before moving into the rental property, schedule a move-in inspection with the landlord. Together, assess the property's condition and document any existing damages or concerns on a move-in inspection form. This documentation will be crucial when it's time to move out to avoid disputes regarding the property's condition.
By following these steps and staying informed about your rights and responsibilities as a tenant in Los Angeles, you can confidently navigate the rental application process and secure your desired rental property.
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Rental registration and fees
In Los Angeles, landlords must register their rental properties annually with the Los Angeles Housing Department. This is done through the Rent Registry, an online service portal where property owners can register rental properties, update information about their units, and pay annual rent registration fees. The registration fee depends on the type of rental unit: $90 for fully covered rental units, $30 for partially covered rental units, and $90 for mobile home spaces.
The Rent Stabilization Program requires landlords to serve tenants with an RSO Certificate annually, stating that the property is registered with the Los Angeles Rent Registry.
Property owners must also pay a fee of $35.52 per unit per year for systematic code inspections by the Housing Department to ensure the rental property meets the City's habitability standards.
In addition, renting dwelling units is considered a business activity and is subject to a City of Los Angeles business tax. A business tax certificate is required if rental income is received from more than three units throughout the City.
To register a rental property in Los Angeles, landlords can submit their registration online or by mailing a completed paper application to the Department of Consumer and Business Affairs. Payments can be made online using a credit card or e-check, or in person by check, cashier's check, or money order at the DCBA Headquarters.
It is important to note that California does not require landlords to have a business license, but some cities within the state may have their own requirements. Therefore, it is recommended to check with the city before renting out properties to confirm if a business license is necessary.
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Rental property requirements
Los Angeles has a diverse range of neighbourhoods and a strong demand for housing, offering property owners many opportunities. However, the LA rental market is complex, and landlords must be aware of their obligations and tenants' rights.
Registration and Taxes
Landlords in LA must register their rental properties annually with the Los Angeles Housing Department. This involves paying a fee, which varies depending on the type of rental unit. There is a $90 fee for fully covered rental units, which are subject to rent restrictions and "Just Cause" eviction protections. Partially covered rental units, which have Just Cause" eviction protections but no rent restrictions, have a $30 fee. Mobile home spaces have a $90 fee. These fees must be paid by September 30 each year to avoid penalties and late fees.
Additionally, rental income is considered "business revenue" and is subject to a business tax. A business tax certificate must be obtained from the Office of Finance. However, if renting out three or fewer units in the city, landlords are exempt from this business tax.
Rental Laws
There are several key rental laws and ordinances that landlords in LA must comply with:
- Rent Stabilization: Rent increases are limited by law. LARSO typically allows an annual increase of 3-8%, depending on inflation and other factors. AB 1482, which covers properties not included under LARSO, limits increases to 5% plus inflation, with a 10% maximum cap.
- Just Cause Evictions: After a tenant has lived in the property for 12 months, "just cause" is required for evictions, such as non-payment of rent or lease violations. If evicting a tenant through no fault of their own, relocation assistance may be required.
- Notice Requirements: Landlords must provide advance notice for rent increases (30 days for increases of 10% or less, and 60 days for increases over 10%). Notice of entry is generally 24 hours, except in emergencies. Notice of termination depends on the lease type and reason but is typically 30 or 60 days.
- Disclosure Notices: Landlords must disclose information such as lead-based paint for pre-1978 properties, mould, bed bugs, and sex offenders in the area. If smoking or smoking marijuana is prohibited, this must also be disclosed, along with any pest control measures.
- Habitability Standards: Rental properties must meet basic habitability standards, including functional plumbing, heating, and electrical systems, and be free from pest infestations.
- Non-Discrimination: It is illegal to deny a rental application or evict a tenant based on race, colour, religion, sex, national origin, familial status, disability, or other protected characteristics.
Rental Applications
When applying for a rental property in LA, prospective tenants will typically need to fill out a rental application form. This will request information such as employment details, previous employers, current and past addresses, Social Security number, driver's license number, and authorization for a background and credit check. Landlords use this information to evaluate potential tenants, with a particular focus on credit history.
Additional Considerations for Tenants
When considering renting a property in LA, it is important for tenants to set a budget and create a criteria list based on their priorities, such as distance from work, pet policies, laundry facilities, and crime levels. It is also crucial to be aware of potential rental listing scams. When inspecting a property, check for any issues like leaks, mould, broken fixtures, and pest infestations. Finally, tenants should document the condition of the property before signing a lease and carefully review the contract, ensuring that any verbal agreements are included.
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Frequently asked questions
California does not require landlords to have a business license. However, some cities may require a license to rent out units within city limits. Check with your city to confirm whether you need a business license.
When filling out a rental application in Los Angeles, you will need to provide your place of employment, past employers, names and addresses of current and past landlords, your Social Security number, driver's license number, and authorization to run a background and credit check.
Los Angeles has a Rent Stabilization Program that limits rent increases to between 3-10% per year depending on inflation and other factors. It also requires “just cause” for evictions after a tenant has lived in the property for 12 months.
In Los Angeles, landlords must register their rental properties annually with the Los Angeles Housing Department. They must also provide tenants with a Rent Stabilization Notice and an RSO Certificate, which outlines the rent increase limitations and eviction protections.
Rental income in Los Angeles is considered "business revenue" and is subject to a business tax. Property owners must pay $35.52 per unit per year for systematic code inspections by the Housing Department.
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