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🏠LA’s Rent Cap Showdown: Could Annual Rent Hikes Drop to 3–5 Percent? 🏠

Welcome to The Tenure View, Los Angeles is finally re-examining a rent-control formula that hasn’t seen a major update since 1985 β€” and the outcome could directly affect what renters pay next year. City Council members are weighing proposals that would sharply lower annual rent increases on most rent-stabilized apartments. The Housing Department wants a 2–5 percent cap, while tenant coalitions are urging a stricter 3 percent maximum tied to inflation.

With living costs rising faster than wages, the question is whether LA’s long-overdue reform can deliver real relief β€” without driving smaller landlords out of the market. Add in a new state law requiring fridges and stoves in rentals by 2026 and protests over lost parking and laundry rooms turned into ADUs, and it’s a pivotal moment for housing in LA.

βš–οΈ Policy Watch: Rewriting LA’s Rent Control Rules

After forty years, LA’s rent formula still reflects a 1970s world of high inflation and cheap insurance. Today, those rules let landlords tack on utility surcharges or even raise rents when a tenant adds another household member β€” creating hikes that easily top 10 percent.

Tenants press for lower caps

At this week’s Housing and Homelessness Committee hearing, Councilmember Nithya Raman said bluntly: β€œOur structure right now is not designed to do what it was supposed to do.”

Here’s what’s on the table:

  • Tenant proposal: Cap annual increases at 3 percent, tied to 60 percent of inflation.

  • City Housing Department: Set a 2–5 percent band with a floor to avoid 0 percent in low-inflation years.

Supporters say the change could stop β€œstacked” increases that have quietly eroded affordability. Economists warn overly strict limits might push small owners to sell β€” shrinking the city’s already aging affordable stock.

πŸ‘‰ Our take: LA’s rent rules should protect stability without rewarding loopholes. Updating the formula is overdue β€” but success depends on pairing new caps with clear guidance and enforcement.

🍳 Policy Spotlight: AB 628 β€” Fridge + Stove Required

Starting January 1, 2026, landlords across California must include a refrigerator and stove in every new lease under Assembly Bill 628, signed this month by Governor Newsom.

Before this law, many rentals β€” especially older LA apartments β€” legally classified these as β€œamenities,” leaving tenants to buy, move, and maintain their own. The result: renters shouldering hundreds in extra move-in costs just to make a place livable.

Assemblymember Tina McKinnor, who authored the bill, said the change was inspired by the growing number of renters struggling to afford the basics. β€œLandlords can’t rent an apartment without a fridge, just like they can’t rent one without hot water,” she said.

πŸ‘‰ Our take: AB 628 is a quiet but meaningful win for renters. It turns two basic necessities into guaranteed rights β€” reducing upfront expenses and closing one more loophole in what β€œhabitable” truly means.

πŸ—οΈ Housing Watch: ADUs and the Loss of Tenant Services

In Koreatown, tenants at 501 S. Kingsley Drive say their landlord is replacing parking and laundry rooms with new ADUs. They’ve staged a weeks-long sit-in to block construction, arguing the loss of amenities amounts to back-door displacement.

Under state law, landlords can build up to eight ADUs on a multifamily lot without replacing parking. Tenant groups warn this is being used to sidestep rent-stabilization rules and pressure long-term residents out.

πŸ‘‰ Our take: More housing is essential β€” but not at the cost of making existing homes unlivable. City inspectors must enforce tenant habitability plans and penalize landlords who remove essential services to build ADUs.

🧾 Market Trends: Cooling Rents, Rising Costs

Fresh data shows signs of relief β€” but not yet for everyone. According to Yardi Matrix, U.S. advertised rents fell by $6 to $1,750 in September 2025, marking the worst September performance in over a decade. Year-over-year growth slowed to just 0.6 percent as 525,000 new units entered lease-up nationwide.

Even so, rents remain near record highs and essential costs in LA keep rising β€” from insurance to building maintenance.

πŸ‘‰ Our take: A slowing market should help stabilize renewals next year. But without stronger tenant protections and clear rent-cap rules, any relief will be uneven and temporary.

πŸͺ§ Community Spotlight: Debt Collective & the β€œEQR 9” Rent Debt Strike

Nine former Equity Residential tenants in LA have banded together as the EQR 9, launching the nation’s first back-rent debt strike to challenge pandemic-era arrears and junk fees. Their ally, the Debt Collective, created a new tool to help renters document abuses and dispute debts.

Whether or not you join a strike, the lesson is clear: document everything, connect with neighbors, and seek legal aid early. Organizing transforms a private bill into a public fight for fairness.

πŸ‘‰ Learn more: Debt Collective Resources for Renters

πŸ’‘ Renter Tip of the Week: Know Your Caps Before You Renew

If your apartment falls under LA’s Rent Stabilization Ordinance (RSO):

  • Check your increase limit β€” today it can reach up to 10%, but proposals may lower that to 5% or less.

  • Watch for add-ons like utility charges or β€œextra occupant” fees β€” these may change after reform.

  • Track City Council votes through the Housing Committee page.

  • Compare your lease with your building’s RSO registration to verify coverage.

Small adjustments and timely documentation can save hundreds over a year.

πŸ“ The Tenure Take

For the first time in decades, LA is re-writing the math that decides your rent increase. A 3 percent cap could mean real stability for tens of thousands of households β€” and set a precedent for cities nationwide. But reform is only as strong as its enforcement. Keep receipts, stay informed, and support tenant groups pushing for fair, workable rules. Information plus community is still the renter’s best defense.

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