What is the annual rent increase allowed under the Los Angeles RSO?
Under the City of Los Angeles Rent Stabilization Ordinance (RSO), the allowable annual rent increase for rent-stabilized units effective July 1, 2025, through June 30, 2026 is 3%. If the landlord provides gas and electric utilities, an additional 1% may be added, making the total allowable increase 4% per year.[1][2][3]
However, beginning with rent increases served on or after February 2, 2026, this additional percentage for utilities will no longer be permitted, pending final approval by the City Council.[2]
Notice Requirements
Under both state and local law:
- The landlord must provide at least 30 days’ written notice for rent increases under 10% (which includes RSO annual increases).[1][2][5]
- Notices must be in writing — verbal, text, or email notices do not suffice — and must specify the new rent amount and the effective date of the increase.[5]
- Rent may be increased only once every 12 months for RSO units.[2][3]
If the Landlord Pays for Utilities
If, during the 2025–2026 rent cycle, the landlord pays for gas and electricity, they may add an additional 1% to the allowable 3% general increase (total 4%). However, payment for water does not affect the allowable increase — only gas and electric utilities are eligible under RSO rules.[1][3][4] As of February 2026, no utility-based percentage add-on will apply to new notices.[2]
Example Calculation (2025–2026 Cycle)
If the current rent is $2,000, the increase allowed is:
- 3% = $60 → if tenant pays all utilities.
- 4% = $80 → if landlord pays both gas and electricity.
Therefore, new rent effective July 1, 2025, could be $2,060 (no utilities provided) or $2,080 (gas and electricity included by landlord).
Summary Table
| Period | Base Increase | Additional If Landlord Pays Gas/Electric | Total Possible | Notice Period |
|---|---|---|---|---|
| Jul 1, 2025–Jun 30, 2026 | 3% | +1% | 4% | 30 days (if <10%) |
| After Feb 2, 2026 | 3% | 0% (no additional increase for utilities) | 3% | 30 days (if <10%) |
These limits apply only to RSO-covered units, generally those built on or before October 1, 1978, or replacement units built after July 15, 2007, that replaced RSO-covered housing.[4]