New LA 'Renoviction' Rules & What They Mean For You

Is this a precursor of what's to come if Prop. 33 passes?

The recent vote by the LA City Council on “renovictions” offers a glimpse into what the rental landscape might look like if Proposition 33 passes this November. With tenant protections growing stronger, property owners are facing an increasingly challenging environment when it comes to managing and renovating their investments. This new policy introduces additional requirements for landlords aiming to renovate occupied rental units, particularly those in rent-controlled properties, while aiming to curb tenant displacement due to remodeling. Here’s a breakdown of what’s changing, the reactions from stakeholders, and how it may impact your approach to property improvements.

What's New?

• Eviction Only If Unit Is “Uninhabitable”: Landlords are now restricted from evicting tenants for substantial remodels unless the unit is deemed “uninhabitable.” This means that if the tenant can continue to safely live in the unit during renovations, an eviction is not permitted.

• Permit and Inspection Requirements: Property owners must now secure specific permits and meet inspection requirements to verify the need for extensive remodeling. The law aims to prevent situations where evictions are justified for minor or cosmetic updates, enforcing that only essential health and safety upgrades qualify.

• Tenant Right to Return: When an eviction is approved for substantial remodeling, tenants will have the right to return to their unit once the renovations are complete, at the same rental rate they previously paid. This safeguard intends to prevent landlords from using remodels to circumvent rent control laws by moving new tenants in at market rate.

Who is Affected?

• The protections primarily apply to tenants in rent-controlled units under RSO (Rent Stabilization Ordinance) and those covered by AB-1482 (Tenant Protection Act of 2019). For landlords of non-RSO units or those not under the Tenant Protection Act, this policy does not impact the flexibility they have in property improvements. However, it does set a precedent for other cities looking to balance tenant rights with property ownership freedoms.

Reactions from the Community & Stakeholders

The Apartment Association of Greater Los Angeles (AAGLA) has expressed concerns that these new policies could lead to further challenges for landlords attempting to improve and maintain their properties. In a statement, AAGLA noted, “By making it more difficult to evict for substantial remodels, the City is effectively discouraging much-needed property improvements.” Property owners now face more scrutiny and hurdles, which could slow down the process of enhancing property value and ensuring tenant safety.

On the other hand, tenant advocacy groups have voiced support for the new measures, asserting that they protect tenants from being unfairly evicted under the guise of remodeling. “This vote sends a clear message that LA will not tolerate eviction tactics that exploit housing loopholes,” said Councilmember Nithya Raman, a vocal supporter of tenant rights. Councilmember Raman further added, “It’s time to put an end to the misuse of the remodeling clause as a method to try and evict people.”

Final Thoughts

With elections approaching, it’s more important than ever for property owners and landlords to understand these shifting dynamics and make their voices heard. If Prop. 33 passes, these changes may only be the beginning of more comprehensive tenant protections across Los Angeles. We encourage you to participate in the upcoming vote and help shape the future of property ownership in our city.