Landlords in Los Angeles are now allowed to increase their rents next year, marking an end to the city's pandemic-era rent freeze law.
The Los Angeles City Council on Tuesday voted to allow landlords to increase rents in rent-controlled apartments by up to 6% next year. Starting on February 1, LA landlords may impose a 4% rent hike and an additional 2% if they cover their tenant's gas and electricity costs, as first reported by LAist.
Had the city council disapproved of the proposal, landlords would be allowed to hike rent prices by up to 7%, with an additional 2% for landlords paying for their tenant's utilities under the city's existing rules, per Los Angeles Times.
The rent hike will only apply to units falling under Los Angeles' rent stabilization ordinance or three-quarters of the city's multifamily rental units.
The rent hike proposal was approved on a 10-2 vote. Councilmembers Traci Park and John Lee voted against the proposal.
"We've already asked an awful lot of our mom-and-pop landlords, and I just can't imagine how much more we're going to continue to expect them to give," Park said.
Councilmembers Curren Price and Council President Paul Krekorian did not vote as they owned rental properties. Councilmember Katy Yaroslavsky was absent from the vote.
The city attorney's office is expected to create a formal draft of the proposal soon before another vote to finalize the decision.
Pandemic-Era Rent Freeze
Tuesday's decision puts an end to the rent freeze that began in March 2020 amid massive layoffs and furloughs caused by stay-at-home policies to prevent the spread of COVID-19. City lawmakers aimed to help protect renters experiencing hardships caused by the pandemic.
"Together, these actions were designed to prevent unnecessary housing displacement and to prevent housed individuals from falling into homelessness," the COVID-19 Renter Protections document read.
Prior to Tuesday's voting, council members Hugo Soto-Martinez and Eunisses Hernandez proposed to extend the rent freeze until August 2024. Hernandez also proposed limiting the allowable rent increase to 4%, regardless of whether the landlord covers utility costs. Neither amendment received enough votes.
Los Angeles is the only major city that still has a rent freeze.
An apartment for rent sign is posted in South Pasadena, California on October 19, 2022.