Welcome to The Tenure View, Los Angeles just completed one of its biggest renter-policy rewrites in decades: a new rule that lowers how much landlords can raise rents each year for the majority of rent-controlled units. But even before the updated Rent Stabilization Ordinance (RSO) begins rolling out, City Hall is already debating whether some landlords should get permission to charge more than others.

The proposal — aimed at allowing “small landlords” to raise rents an extra 1% on top of the new citywide cap — has sparked a fresh fight over fairness, affordability, and what role different types of owners should play in LA’s housing system.

Here’s what’s changing, what’s being considered next, and what renters should know heading into 2026.

Last month, the Los Angeles City Council approved a major update to the RSO, lowering allowable annual rent increases from the previous 3%–8% (up to 10% with surcharges) down to a tighter 1%–4% range.

Under the new rules:

The goal of the overhaul is to stabilize rents, protect tenants from steep increases, and control housing costs at a time when many renters are still recovering from wildfire displacement, rising insurance premiums, and years of market volatility.

Before the update was even finalized, councilmembers John Lee and Monica Rodriguez introduced a separate proposal: allow landlords who own 10 units or fewer to raise rents by an additional 1% each year.

They argue:

Landlord groups support the idea, calling it a modest step in the right direction.

But tenant advocates strongly disagree.

Tenant coalitions say the policy would:

And then there’s the research. A city-commissioned Economic Roundtable study found no evidence that small landlords in LA are under more distress than corporate owners. Financial performance and challenges were similar across the board.

Because of this, the City Council sent the proposal back to committee for more discussion. No changes are happening yet — but this debate will likely return early next year.

The clash over the additional 1% is part of a much wider shift in Los Angeles around how housing should function — and for whom.

After the January wildfires destroyed thousands of homes, many tenants faced sudden rent spikes, displacement, and unsafe living conditions. At the same time, investor interest in distressed housing grew, following a familiar cycle of disaster, speculation, and profit.

In response, more renters are joining tenant unions and pushing for:

Nationally, momentum around social housing is growing — a model that treats housing as a public good rather than a profit-maximizing asset. Cities like Seattle and Minneapolis are scaling publicly backed, community-controlled housing alternatives. In LA, Measure ULA (“the mansion tax”) has already generated hundreds of millions of dollars that can be used to preserve or create deeply affordable homes.

The local fight over rent caps is not happening in isolation. It sits inside a broader movement reshaping how Angelenos think about housing, ownership, and economic justice.

💸 How Much You Save by Having a Roommate in LA
HUD Fair Market Rent data shows:

Doubling up remains one of the most effective — and increasingly common — strategies for lowering housing costs.

📉 Rents Are Cooling Nationwide
According to Realtor.com:

This gives renters more leverage in negotiations than they’ve had in years.

🏡 Coverage Under the RSO

Housing policy often feels abstract — until it directly affects your monthly budget, your lease renewal, or your ability to stay in your community. LA’s new rent cap creates more predictability for most tenants, and the upcoming debate on small-landlord exemptions shows just how quickly these rules can shift based on political pressure.

As these changes unfold, one thing remains clear: renters have power when they stay informed, organized, and vocal. The housing system is not fixed — it’s shaped each time communities push for fairness, transparency, and accountability.

LA’s affordability crisis wasn’t built overnight, but neither will be the solutions. We’re committed to helping you navigate every part of it.

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