By Lily Morse, Communications Intern

The amount a landlord can legally increase the rent will change beginning on July 1, 2025, for apartments covered by the Los Angeles Rent Stabilization Ordinance (LARSO). LARSO is a city law that regulates rental housing, and it applies to buildings with two or more units built before October 1978. 

As of July 1, landlords are permitted to raise rents for LARSO units by 3%, plus 1% if the landlord pays for electricity and 1% if the landlord pays for gas.

Each year, the Los Angeles Housing Department determines how much landlords can raise rents annually using a 40-year-old formula that depends on the Consumer Price Index; the amount can range up to 10%. SAJE, as a member of the Keep LA Housed coalition, would like to see the city discard that formula and simply cap annual rent raises at 3%.

Los Angeles’ tenants are already struggling to pay rent, and annual rent increases of up to 10% add to this pressure, compounding over time and outpacing wage gains and inflation. A 2024 study by the Economic Roundtable, commissioned by the City of Los Angeles, recommended reducing annual rent hikes to between 2% and 5%. The study was submitted to the city over a year ago, but no vote on the provision was ever scheduled. 

A representative of Councilmember Nithya Raman, who chairs the City Council Housing Committee, told LAist they are working to schedule a vote to update the rent control regulations. However, with the council’s summer recess rapidly approaching, it’s unclear whether the vote will occur before the recess on July 2.  

SAJE hopes the city council will vote soon to cap rent increases at 3% and ensure Angelenos aren’t burdened with significant rent increases. 

Voice your support by submitting written public comment to the council using our toolkit here. Learn more about the campaign at KeepLAHoused.org.