The LA City Rent Stabilization Ordinance (RSO) covers buildings within the City of Los Angeles with a certificate of occupancy dated before October 1, 1978 and containing two or more units. If your building meets both criteria and sits within LA City limits, you're under RSO.
Other jurisdictions in the LA metro area — unincorporated LA County, Santa Monica, West Hollywood, Beverly Hills — have their own separate rent control regimes. And buildings built on or after February 1, 1995 are exempt from local rent control entirely under the Costa-Hawkins Rental Housing Act.
The distinction matters because it determines almost every dimension of how your building is valued, operated, and sold.
All three must be met:
If any of these fails, the building is not under LA City RSO. It may be under a different regime (AB 1482 statewide, another city's ordinance) or fully exempt (Costa-Hawkins post-1995, single-family home, condominium).
Three ways to confirm:
One: check the LAHD registration. LA City RSO-covered buildings must register annually with the LA Housing Department. If your building is registered, it's covered. If it's not registered but meets the criteria above, you have an RSO compliance gap to resolve (important to do before listing for sale).
Two: check the certificate of occupancy date. The CoO is the date the building was first authorized for occupancy. For most LA multifamily, this is the same as the construction completion date or shortly after. LA Department of Building and Safety records have CoO dates.
Three: reach out to LAHD directly. For buildings with unclear status, the LA Housing Department can confirm RSO coverage.
If your building is RSO-covered, several things apply:
RSO-covered buildings trade at wider cap rates than non-RSO buildings in the same submarket. The reason is simple: RSO caps future NOI growth. Buyers underwrite the cap ceiling. Cap rates adjust accordingly.
For a typical LA City pre-1978 building in 2026, the cap rate is 20-40 basis points wider than an otherwise-identical post-1995 Costa-Hawkins exempt building in the same submarket. The July 2026 RSO rewrite is actively widening that gap further.
LA County RSTPO covers residential rental properties in unincorporated LA County (not LA City, not Santa Monica, not other incorporated cities). As of January 2025, it caps rent increases at 60% of CPI with a 0-3% ceiling — stricter than LA City.
Santa Monica operates its own Rent Control Board with allowable increases set separately each year.
West Hollywood has its own Rent Stabilization Ordinance.
Beverly Hills has its own rent stabilization program covering most pre-1995 multifamily.
Glendale, Burbank, Pasadena, and other LA-adjacent cities have various local rental ordinances, typically less restrictive than LA City RSO.
AB 1482 is the statewide California backstop. Applies to residential rentals not covered by a stricter local ordinance. Current cap: 6.3% (Aug 2025 through Jul 2026).
Costa-Hawkins exemption removes post-February 1995 construction, single-family homes, and condominiums from local rent control. These buildings are subject only to AB 1482 backstop.
| Your building's profile | Regime that applies |
|---|---|
| LA City, pre-Oct 1978, 2+ units | LA City RSO |
| LA City, Oct 1978 – Jan 1995 | AB 1482 (not RSO) |
| LA City, post-Feb 1995 | Costa-Hawkins exempt (AB 1482 only at initial rent) |
| Unincorporated LA County, pre-1995 | LA County RSTPO |
| Santa Monica, pre-1979 | Santa Monica Rent Control Board |
| West Hollywood, pre-1979 | West Hollywood RSO |
| Beverly Hills, pre-1995 | Beverly Hills Rent Stabilization |
| Glendale, Burbank, Pasadena | Each city's own ordinance |
| Single-family home or condo | Costa-Hawkins exempt |
| Any jurisdiction, no local rent control, pre-1995 | AB 1482 only |
Step one: Check your property tax record to verify jurisdiction. LA City tax records say "Los Angeles." LA County unincorporated records say your neighborhood (e.g., "Florence-Graham") without a city designation.
Step two: Check the certificate of occupancy. Pre-1978 in LA City = RSO. Post-1995 anywhere = Costa-Hawkins exempt.
Step three: Pull the LAHD registration (if LA City) or local rent program registration (if applicable elsewhere).
Step four: Consult a broker or attorney familiar with LA multifamily regulatory regimes if the status is still unclear.
Most LA multifamily owners know their building is "rent controlled" without knowing which specific regime applies. The regime determines the cap rate, the sale price, and the trajectory of your rent roll. Knowing your exact status is foundational.
If you're not sure, getting clear before you list is one of the highest-ROI pre-sale tasks on the preparation list.
Request a free evaluation — including a confirmation of exactly which regulatory regime applies to your building →
Related reading:
- What is AB 1482 and does it apply to my building?
- LA Multifamily Legislation Tracker
- How Rent Control Affects Your Apartment Building's Sale Price in LA
Michael Sterman is Senior Managing Director Investments at Marcus & Millichap. $1.41 billion across 254 closed transactions — most of them on rent-controlled inventory, which means clarity on which regime applies is routine pre-sale work.
Thinking about selling? Get a no-obligation evaluation from a broker with $1.41 billion across 254 closed LA multifamily transactions.
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