Rules and red tape come with the territory of owning a commercial or multifamily property, but things can be particularly complex as an investor in Los Angeles or LA County.
Regulations are constantly adjusted across all 3 levels of government, and policies may apply differently to each asset in your portfolio depending on specific variables.
From a legal standpoint, it’s your job to keep up with changes and follow the law as it applies to you, your properties, and your tenants. Beyond that, new regulations can also impact your expenses, equity, and management processes.
Continue reading for an introductory overview of Los Angeles’ housing laws, including advice on how to stay up to date on changes to relevant rules and regulations.
Note: This blog post includes high level information. Verify legal details with a professional advisor or lawyer before making changes to your management processes.
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Los Angeles Housing Regulations at a Glance
LA and Los Angeles County may be one of the top investment markets in the country, but it’s not without its boundaries. You already know this as an investor.
Like any income-generating business, commercial and multifamily real estate investments must adhere to a long list of regulations at local, state, and federal levels. Although there is some degree of overlap, each jurisdiction covers a distinct part of the regulatory spectrum.
These policies cover a broad range of variables related to income, rental adjustments, tenant communication and management, property alterations, security, zoning, and more.
Your Role as an Investor in Los Angeles
Staying up to date with housing policies is about more than just following the rules and being a good landlord.
As regulations change, so can your day-to-day responsibilities, operating costs, and lease management rights. All of these factors (and more) could drastically impact your income and equity.
There’s also the risk of disputes or penalties if you break certain rules, both of which can also cost you time and money.
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Have an Expert in Your Corner
One of the easiest ways to protect your interests as an investor (including staying up to date with housing policies) is to connect with a multifamily real estate advisor.
Wherever you may be in the portfolio lifecycle, they can evaluate and optimize your investments to increase wealth and make the process easier. As part of this, your advisor can also ensure you’re caught up with recent regulations and help you make important decisions based on relevant policy changes.
Recent Updates to LA Housing Policies
Local and state law is ever-changing, and the impact of regulatory adjustments can range significantly. As an example, let’s explore 3 recent updates to housing policy that you should know about as an investor in Los Angeles or LA County.
New Standards of Habitability
As per AB 628, all residential rental units in the state of California must include a functioning stove and refrigerator. This expanded standard of habitability applies to new, amended, and renewed leases in LA.
No Increase For Added Dependants
Previously, investors and landlords could add a 10% rent increase in response to new dependents added to the tenancy.
Effective February 2, 2026, an additional 10% increase for an additional dependent added to the tenancy is no longer permitted. However, a 10% increase for an additional tenant is allowed if a non-dependent moves into a rental unit.
Right to Counsel
All renters receive the Right to Counsel (RTC) under the umbrella of LA’s tenant protection laws. As a landlord, you are required to provide a notice of RTC to all new tenants when they sign a lease. This notice must be in the tenant’s language.
You must also attach an RTC notice when notifying a tenant of certain changes or procedures that could impact their housing status. This includes eviction notices or termination of a rental housing subsidy.
These updates are in effect as of 2026. However, rules and regulations are always evolving. For the most up-to-date information, you’ll want to consult with a professional advisor. More on that next.
Approaching a multifamily real estate investment? Explore these related readings for more advice and insights.
Neema Group: Your LA Multifamily Real Estate Advisors
No matter your goals, the best way to optimize your portfolio or investment sale is by partnering with local commercial and multifamily real estate advisors, the Neema Group.
As experienced leaders of LA’s dynamic market and investors ourselves, we understand what matters most to investors and provide hands-on, educational guidance tailored to your unique needs. Connect with us today.
Need multifamily real estate support? Call (213) 797-2290 or email us at neema@marcusmillichap.com to reach our team of experts.
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