L.A. City Invalidates Certain Rent Increase Notices: What Property Owners Should Know

L.A. City Invalidates Certain RSO Rent Increase Notices. On February 2, 2026, the City of Los Angeles enacted changes to the Rent Stabilization Ordinance (RSO) that invalidated certain rent increase notices issued for RSO-covered units. Notices that included now-prohibited utility surcharges or relied on outdated calculation formulas are no longer valid, and property owners who served them must reissue corrected notices to lawfully raise rent.

For owners managing rent-controlled properties in the City of Los Angeles, this is a meaningful compliance shift — and one with real financial consequences. An invalid notice does not simply delay a rent increase. It can expose owners to tenant disputes, regulatory complaints, and lost revenue while the situation is corrected.

Table of Contents

• What Changed Under the RSO Update
• Why Specific Notices Are Being Invalidated
• The Current Allowable Rent Increase
• Required Notice Periods
• Special Considerations for Section 8 Tenants
• What Property Owners Should Do Now
• Financial and Operational Impact
• How to Confirm Whether a Property Is Subject to the RSO
• The Role of Property Management
• FAQ’s

What Changed Under the RSO Update

Effective February 2, 2026, the City Council adopted three significant changes to how RSO rent increases are calculated and what landlords are permitted to charge:

The 1% utility pass-through is eliminated. Previously, landlords who provided gas or electricity to a unit could add a 1% increase on top of the annual allowable rent increase. That additional 1% is no longer permitted. Notices issued on or after February 2, 2026 that include this surcharge are invalid.

The 10% dependent allowance is eliminated. Previously, when a dependent was added to a tenancy, landlords could increase rent by 10%. That increase is no longer permitted. Notices issued on or after February 2, 2026 that rely on this provision are invalid.

The annual rent increase formula is changed. The City Council amended the formula used to calculate the maximum allowable annual increase from 100% of CPI to 90% of CPI, with a new range of 1% to 4% per year. The interim cap of 3% remains in effect through the current adjustment cycle, with subsequent adjustments calculated under the new formula.

A 10% increase is still permitted when an additional non-dependent tenant is added to the lease, subject to a 60-day notice once the landlord learns of the additional occupant.

Why Specific Notices Are Being Invalidated

A rent increase notice is only legally enforceable if it complies with the regulations in effect on the date it is served. Two specific issues are causing the wave of invalidations in 2026:

Notices that include the eliminated 1% utility add-on. Any notice served on or after February 2, 2026 that adds a 1% surcharge for landlord-provided gas or electric service is invalid. The base rent increase amount itself may still be valid, but the surcharge cannot be charged.

Notices that calculate the increase using outdated CPI formulas. Notices that rely on the prior 100% CPI formula or use a calculation outside the current 1% to 4% range fall outside the rules now in effect. These notices must be reissued with corrected calculations.

In addition to these substantive issues, notices can also be invalidated for procedural reasons — including incorrect notice periods (covered below) and improper service.

The Current Allowable Rent Increase

The current annual allowable rent increase for RSO-covered units is 3%, in effect through June 30, 2027. Beginning July 1, 2027, the allowable increase will be calculated under the new 90% CPI formula adopted by the City Council, with a floor of 1% and a ceiling of 4%. The new formula calculation methodology is technically effective July 1, 2026, but the 3% rate remains the operative cap during the current cycle.

Before issuing any rent increase notice, owners should verify the current published percentage on the LAHD Renter Protections page rather than relying on prior figures or assumptions. The percentage can be adjusted by the City Council, and using an outdated figure is one of the fastest ways to invalidate a notice.

Rent increases under the RSO are permitted no more than once every 12 months.

Required Notice Periods

California state law sets minimum notice periods that must be followed in addition to any local requirements:

• 30 days written notice for a rent increase of 10% or less in any 12-month period
• 90 days written notice for a rent increase greater than 10% in any 12-month period
• 60 days written notice for an additional non-dependent tenant added to the lease (calculated from when the landlord learns of the additional occupant)

For most RSO-covered increases under the current 3% cap, the 30-day notice rule applies. Owners should always verify that the notice period satisfies both state and local requirements, document the date of service, and use a method of service that creates a clear delivery record.

A notice with a calculation error can sometimes be cured by reissuing. A notice with an insufficient notice period generally cannot — the entire timeline restarts.

Special Considerations for Section 8 Tenants

Properties with Section 8 (Housing Choice Voucher) tenants carry additional requirements layered on top of standard RSO and state rules. In most cases, owners must provide at least 60 days’ written notice and obtain housing authority approval before a rent increase can take effect.

For owners who served Section 8 rent increase notices on or after February 2, 2026 that included the now-eliminated 1% utility add-on or the 10% dependent allowance, the path forward typically requires both rescinding the original notice and restarting the approval process with the housing authority. This is more involved than a standard RSO reissue and should not be attempted without careful coordination.

What Property Owners Should Do Now

For owners who served rent increase notices on or after February 2, 2026, the practical steps are:

Audit recent notices. Identify any notice issued on or after February 2, 2026 that includes a 1% utility surcharge, a 10% dependent allowance, or an increase calculation outside the current 1% to 4% range.

Rescind invalid notices in writing. A clean written rescission of the original notice is the cleanest way to reset the relationship and avoid future disputes. Keep a copy in the tenant file.

Recalculate using the current allowable percentage. Verify the current published rate on the LAHD Renter Protections page before recalculating.

Reissue corrected notices with proper notice periods. Use 30 days for increases of 10% or less, 90 days for larger increases, and 60 days for additional tenant additions. For Section 8 tenancies, follow housing authority procedures.

Document everything. Keep a clear record of the rescission, the recalculation, the date of service of the corrected notice, and any tenant communication.

Pause future notices until calculations are confirmed. If there is any uncertainty about the current allowable percentage or the validity of a calculation, pause the notice rather than serving an invalid one.

Financial and Operational Impact

For owners with multiple RSO-covered units, the cost of invalid notices is rarely just delayed rent. It compounds across:

• Lost revenue during the time required to rescind, recalculate, and reissue
• Administrative time spent identifying and correcting affected notices
• Potential tenant disputes or LAHD complaints if notices were already partially acted upon
• Section 8 reapproval timelines, which can extend the delay by 60 days or more
• Insurance and refinancing implications for properties whose compliance file is questioned during diligence

A single invalid notice across a 20-unit portfolio is a manageable inconvenience. Twenty invalid notices across the same portfolio is a meaningful financial event, especially for owners who timed planned increases around the start of the calendar year.

How to Confirm Whether a Property Is Subject to the RSO

Not every rental property in Los Angeles is subject to the RSO. To confirm whether a specific unit is covered:

• Use the ZIMAS portal at zimas.lacity.org. Enter the property address, click the Housing tab, and the RSO status is displayed.
• Text “RSO” to (855) 880-7368 from a mobile phone for an automated lookup.
• Call the LAHD hotline at (866) 557-7368 for verification with a live representative.

Owners with mixed portfolios across multiple jurisdictions should confirm the applicable rent control framework for each property. Some units may be subject to the RSO, others to AB 1482, and still others to county-level or city-specific ordinances elsewhere in the South Bay.

The Role of Property Management

Tracking the date and content of every rent increase notice across a portfolio is one of the more administratively demanding parts of multifamily ownership in Los Angeles right now. A professional property management company should be:

• Auditing all notices served on or after February 2, 2026 against the current rules
• Rescinding and reissuing notices where necessary, with clean documentation
• Verifying the current LAHD allowable percentage before any new notice is calculated
• Coordinating Section 8 reapprovals with housing authorities when required
• Maintaining a centralized record of notice service dates, methods, and tenant responses

At Jamico Properties, we treat RSO compliance as a non-negotiable part of how we manage properties for our owners. Small calculation errors and outdated formulas are exactly the kinds of issues that compound across a portfolio if they are not caught early.

If you own RSO-covered rental property in the City of Los Angeles and want to confirm whether your recent notices remain valid, request a free rental analysis or contact us directly.

This article is for informational purposes only and is not legal advice. Property owners should consult an attorney and verify the current allowable rent increase percentage on the LAHD website before issuing any rent increase notice. Rent regulations are complex and subject to change.

FAQ’s