Keeping rent increases compliant, fair, and financially sound in Los Angeles can feel like threading a needle. Regulations vary by building type, timelines are strict, and market conditions shift by neighborhood.
At TGN Property Management, our Los Angeles Property Management experts recommend a system that blends legal compliance, data, and proactive communication—so you protect revenue without risking violations or vacancies.Below is a simple, repeatable playbook you can use right away.
Key Takeaways
- Know your property’s category first (RSO, AB 1482, or exempt) to avoid missteps.
- Track increases on a rolling 12-month basis to respect caps and notice periods.
- Base adjustments on real comps and seasonality, not just costs.
- Communicate early and often—clear, documented notices reduce surprises and turnover.
- Automate what you can with calendars, templates, and software alerts.
As of 2025, Los Angeles rules continue to evolve. Always verify current requirements for your specific building and lease dates.
Step 1: Map Your Legal Category
Before you touch the numbers, identify which rules apply. Our Los Angeles Property Management experts recommend confirming this at every turnover and before any increase:
- Los Angeles RSO (Rent Stabilization Ordinance): Typically multifamily built before 1978 within LA City limits. Annual increases are regulated and time-bound. Additional rules apply for fees and pass-throughs.
- California AB 1482 (Tenant Protection Act): Caps annual rent increases to the lesser of 5% + CPI or 10% for most properties 15+ years old, unless exempt. Also requires just cause for termination after 12 months of occupancy.
- Common Exemptions: Single-family homes and condos (if not owned by a REIT/corporation and the exemption notice is properly served), new construction (usually 15 years or newer), and owner-occupied duplexes.
- Notice Periods (California Civil Code):
- 30 days for increases of 10% or less (cumulative within any 12-month period)
- 90 days for increases over 10% (cumulative within any 12-month period)
Because penalties for errors are steep, our Los Angeles Property Management experts recommend documenting your category and keeping proof of any exemption notices served at lease start and renewal.
Step 2: Build a Rent Increase Calendar
Consistency beats memory. Here’s the structure our Los Angeles Property Management experts recommend:
- Centralized lease ledger: Track current rent, start date, last increase, total increases within the past 12 months, and next eligible increase date.
- Automated reminders: Create calendar alerts 120, 90, and 60 days before any renewal window to leave time for comps and notices.
- Policy rules baked in: In your property management software (AppFolio, Buildium, Yardi Breeze, or similar), configure caps and notice templates by property category.
- Rolling 12-month view: Always calculate increases cumulatively over the last 12 months to avoid exceeding caps.
Step 3: Price With Market Data, Not Guesswork
Rent increases should be justified by the market and the unit’s value. Our Los Angeles Property Management experts recommend a quick, focused comp analysis:
- Tight radius comps: 0.75–1.0 miles in dense areas (Koreatown, Hollywood, DTLA), up to 2 miles in the Valley and Westchester, adjusted for neighborhood boundaries.
- Fresh data only: Prioritize listings leased in the last 30–90 days.
- Adjust for amenities: Parking, in-unit laundry, AC, EV charging, outdoor space, views, upgrades, pet policy, and utility responsibilities.
- Seasonality matters: Spring/summer can support firmer increases; winter may call for modest bumps or strategic concessions.
The output should be a range, not a single number. Choose a target based on your goals: retention vs. revenue growth.
Step 4: Choose a Strategy: Retain or Reset
Different tenants and timelines call for different approaches:
- Retention-first:
- Modest, compliant increase aligned with comps.
- Offer value adds (minor upgrades, flexible payment date, extended lease term) instead of pushing top-of-market.
- Benefit: Fewer vacancies and turnovers, which often beats chasing an extra few percent.
- Reset-to-market:
- Appropriate when current rent trails market substantially or when a renovation is planned.
- Be transparent: share the rationale, comps, and options (e.g., longer term to lock rate).
- Consider a phased approach or concessions that keep effective rent competitive without lowering face rent.
In either case, our Los Angeles Property Management experts recommend aligning increases with your 12–24 month asset plan (refinance, sale, or capital projects).
Step 5: Deliver Clear, Compliant Notices
Good communication prevents surprises and disputes. TGN’s process:
- Draft with precision: Include current rent, new rent, dollar/percentage increase, effective date, and legal references as required.
- Serve properly: Use the method permitted by your lease and law (personal service, posting and mailing, or certified mail). Keep timestamped proof.
- Provide options: Offer alternative lease lengths, autopay enrollment, or minor improvements to encourage renewals.
- Invite questions: A live contact channel (email/phone) reduces anxiety and boosts acceptance.
For AB 1482 properties, ensure your notices include any required disclosures. For exempt units, our Los Angeles Property Management experts recommend confirming the exemption notice was provided at lease inception and is included in renewal packets.
Step 6: Track Acceptance, Declines, and Exceptions
Create a renewal dashboard for each property:
- Accepted as-is: Update the ledger and schedule the new rate.
- Counter-offers: Log requests (pets, parking, minor repairs) and respond with pre-approved boundaries.
- Declines/Move-outs: Trigger your turn plan, marketing timeline, and pre-listing upgrades.
- Exceptions: If you deviate from policy (e.g., freeze for a long-term tenant), record the business reason and duration.
Our Los Angeles Property Management experts recommend weekly renewal stand-ups during peak season to keep decisions timely.
Step 7: Audit and Optimize Quarterly
Compliance is not one-and-done. Run quarterly checks:
- Cap audit: Confirm total increases in any 12-month period per unit stay within legal limits.
- Notice audit: Verify dates, methods, and content match statutory requirements.
- Market audit: Revisit comps; if market softened, consider retention strategies. If it strengthened, plan upcoming adjustments.
- Expense audit: Insurance, taxes, and utilities affect your net. Ensure your strategy supports NOI without spiking turnover.
Common Mistakes to Avoid
- Treating all units the same: RSO, AB 1482, and exempt units require different playbooks.
- Ignoring cumulative increases: Caps apply over a 12-month rolling period, not just a single notice.
- Waiting too long to notify: Missing the 90-day mark for >10% increases eliminates your options.
- Under-communicating: Tenants are more receptive when they understand the “why” and see comps.
- Skipping documentation: If it isn’t documented, it didn’t happen.
What TGN Property Management Delivers
TGN Property Management combines compliance expertise with local market intelligence. Here’s what you can expect:
- Legal mapping per unit: RSO vs. AB 1482 vs. exempt, with supporting documentation.
- Automated compliance calendar: Notice lead times, renewal windows, and cap tracking.
- Data-backed rent recommendations: Recent comps, amenity adjustments, and seasonality insights.
- Transparent tenant communications: Professional, bilingual-ready notices and FAQs.
- Owner alignment: Strategy tailored to your cash flow, risk tolerance, and long-term plan.
Throughout, our Los Angeles Property Management experts recommend small, timely increases aligned with market data, rather than sporadic, large jumps that trigger turnover or compliance risk.
Ready for a Clean, Compliant System?
If you’ve been asking, “How do you track and manage rent increases?”—you don’t have to navigate it alone. Start with a free rent-increase audit tailored to your building, category, and neighborhood. TGN Property Management will map your compliance status, analyze market comps, and deliver a step-by-step plan that’s easy to execute.Contact TGN Property Management today. Our Los Angeles Property Management experts recommend getting ahead of your next renewal cycle now, so you can protect NOI, retain great tenants, and sleep well knowing you’re fully compliant.