A Major Policy Shift for a City Long Free of Rent Control

Burbank has taken a significant step toward regulating rental housing. After an 11 hour meeting that stretched past 2:40 a.m. on October 29, the City Council voted 3 to 1 to implement a 4% soft cap on rent increases. For decades, Burbank stood out as one of the last major Los Angeles area cities without rent control. That era has now ended.

This vote marks a turning point for Burbank multifamily rent control, expanding a trend of regulatory tightening across the region and creating new compliance, financial, and operational implications for owners.

How the 4% Soft Cap Actually Works

Unlike a hard cap, which sets a strict maximum allowable rent increase, Burbank’s model allows owners to raise rents above 4%. However, doing so triggers a relocation assistance requirement equal to three months of the new rent amount.

This creates a clear trade-off.
Owners can raise rents beyond 4%, but they must pay for it upfront.

Key components include:

• A 4% soft cap on annual rent increases
• Option to exceed the cap only if relocation assistance is paid
• Relocation assistance set at three months of the increased rent
• Applies to a large portion of Burbank’s rental stock once the ordinance is finalized

Owners who exceed the cap must be prepared to write a substantial check, which effectively limits the feasibility of larger increases.

A Contentious Vote Shaped by Council Composition

The vote revealed sharp divisions within the council.
Councilmember Zizette Mullins was the lone dissenter. She argued that at minimum, the allowable increase should be 5% to account for rising insurance, utilities, and labor costs. Her concerns reflected feedback from property owners who say their operating budgets are already under pressure.

A key moment came when Councilmember Chris Rizzotti, the only council member with direct real estate experience, was recused because of his work as a Realtor. This left four voting members, three of whom are renters. The balance shifted, and the vote moved decisively toward tenant protections.

Vice Mayor Tamala Takahashi defended the 4% rate as necessary, saying, “The people in this community, they need a frickin place to live.” Mullins countered that property owners also need stable budgets to run buildings responsibly, a position that did not carry the majority.

Why Owners Feel Their Perspective Was Overlooked

David Donahue, president of the Burbank FAIR Housing PAC, described the outcome as disappointing after years of urging the city to recognize the real pressures facing housing providers. Costs for insurance, utilities, and labor have risen significantly, and many owners say the council did not weigh those realities.

Mullins also pointed out that Burbank currently has more than 2,200 vacant apartments, with many landlords offering free first and second months’ rent to fill units. She argued that displacement is not the crisis it is in other cities. Despite this, the narrative that tenants are at heightened risk of losing housing dominated the meeting.

For many owners, the message was clear. The political momentum is favoring stricter oversight, and the new Burbank multifamily rent control framework reflects that direction.

What Happens Next as the Ordinance Moves Forward

The council voted to draft the official rent control ordinance, but several components remain in development. Expected elements include:

• A formal dispute mediation process
• A rental registry with per-unit fees
• Compliance requirements and reporting obligations
• Enforcement mechanisms pending a related legal case in Pasadena

Owners should expect phased implementation. Compliance rules will likely roll out over the coming months as the city finalizes details and prepares administrative infrastructure.

What Multifamily Owners Should Do Now

For owners with properties in Burbank, this is the moment to prepare for new operational and financial realities.

Recommended steps include:

• Running updated financial models that factor in the 4% cap
• Including possible registry fees and compliance costs
• Reviewing lease templates and renewal structures
• Consulting legal counsel on relocation assistance policies
• Reassessing long-term hold strategy in light of rent restrictions
• Tracking city updates as the ordinance continues to evolve

The owners who adapt quickly will be in the strongest position once enforcement begins.

Conclusion

The new 4% soft cap marks a major shift in the regulatory landscape for Burbank. After decades without rent control, the city is moving decisively toward tenant protections and introducing a framework that will affect cash flow, operations, and long-term planning.

As Burbank multifamily rent control takes shape, owners should stay proactive, informed, and prepared for additional measures as the city finalizes the ordinance. Running the numbers now and adjusting strategy early will help minimize disruption as the new system rolls out.