2025 Rental Law Changes Every LA Landlord and Tenant Should Know

Last Updated: May 14th, 2025

Published on

May 14, 2025

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Subheader: Stay Compliant and Informed with California’s Latest Housing Laws

As California continues to address housing affordability and tenant protections, 2025 has introduced a new wave of rental laws that impact both landlords and renters across Los Angeles. Understanding these changes is essential for property owners and tenants alike to avoid legal pitfalls and promote fair housing practices.

  1. Expansion of Just Cause Eviction Protections (SB 567 – Effective 2025)

SB 567, also known as the Homelessness Prevention Act, is now in full effect. Landlords can no longer terminate tenancies for “substantial remodels” unless the construction work is so extensive that it would be unsafe or impractical for the tenant to remain. Permits and detailed construction plans must now be included with any such notice. Additionally, false owner move-ins or misuse of no-fault evictions can result in fines up to $20,000.

What this means for landlords: You must have valid documentation before issuing a no-fault eviction and be prepared to demonstrate compliance if challenged.

  1. Stricter Regulations on Buyout Agreements (AB 1317)

Starting January 1, 2025, landlords offering voluntary tenant buyouts (sometimes known as “cash for keys”) are required to provide tenants with a standardized disclosure form in multiple languages. This form outlines the tenant’s rights, including their right to refuse the offer, seek legal advice, and cancel the agreement within 30 days.

What this means for tenants: You are protected from coercive tactics and have time to weigh your options before accepting any relocation offer.

  1. Local Rent Control Enhancements in Los Angeles

In 2025, the City of Los Angeles updated its Rent Stabilization Ordinance (RSO) to include expanded protections for units previously exempt, including certain accessory dwelling units (ADUs) and newer multi-family buildings reaching their 15-year mark. The city also introduced caps on pass-through costs such as utility surcharges and mandatory maintenance fees.

What this means for landlords: You must verify whether your property has become subject to new RSO requirements and adjust rent increases accordingly.

  1. Mandatory Rental Registry and Inspection Expansion

The Los Angeles Housing Department (LAHD) has broadened its rental registry requirements to include more single-family rental units and small multi-unit properties. Annual registration is now mandatory for most rental properties, and non-compliance can result in fines and ineligibility to issue rent increases. Additionally, inspections under LAHD’s Systematic Code Enforcement Program (SCEP) have expanded to ensure habitability compliance citywide.

What this means for everyone: Keeping your property registered and habitable is no longer optional—it’s a legal requirement.

  1. Updated Rent Cap Calculation under AB 1482

Under the 2025 update to the Tenant Protection Act (AB 1482), the statewide rent cap remains at 5% plus inflation, with a hard ceiling of 10%. However, the CPI index used to calculate inflation adjustments has changed to a more regional measurement, which may result in a slightly lower allowable increase in some parts of Los Angeles.

What this means for landlords: Rent increases must be carefully calculated using the updated CPI formula and documented in writing at least 30 days in advance.

Conclusion:

2025 has ushered in some of the most comprehensive changes to California rental law in recent years. Whether you’re a landlord looking to protect your investment or a tenant ensuring your rights are respected, staying informed is the first step to avoiding costly legal issues.

At Boutique Property Management, we specialize in navigating these legal updates and applying them seamlessly to your rental operations. Our expert team is here to help you stay compliant, reduce risk, and manage your property with confidence in 2025 and beyond.

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