RSO Basics For Highland Park Property Owners

Own rental units in Highland Park and not sure if the Rent Stabilization Ordinance applies to you? You are not alone. Between city rules and state law, it can be hard to know what you can raise, when you can terminate a tenancy, and how to stay compliant. This quick guide explains the basics so you can protect your investment and plan with confidence. Let’s dive in.

What the RSO covers in Highland Park

Highland Park sits within the City of Los Angeles, so the City’s Rent Stabilization Ordinance (RSO) can apply to local rentals. In general, the RSO covers rental units in residential buildings with two or more dwelling units that were built before October 1, 1978.

Common exemptions include single-family homes and condos, and most buildings constructed on or after the cutoff date. Some subsidized or publicly assisted units follow different rules based on the program. Always verify your property’s specifics with the City’s housing department and the Los Angeles Municipal Code.

State law, most notably AB 1482 (Tenant Protection Act of 2019), may still apply to units that are not under the RSO. AB 1482 sets a statewide rent cap formula and just-cause eviction rules for many properties that are not locally rent-stabilized. When both laws could apply, you must follow the rule that provides the greater tenant protection.

How to verify RSO coverage

To determine if your Highland Park property is covered, confirm these factors in order:

Location and year built

• Confirm the property is inside Los Angeles city limits using the City’s mapping tool, ZIMAS.
• Verify the original build date or first occupancy through permits, certificate of occupancy, title records, or the Los Angeles County Assessor. Do not rely solely on MLS or remodel dates.

Unit count and legality

• The RSO generally applies to two or more legal dwelling units. Identify how many legal units exist. Unpermitted or converted units can complicate coverage and compliance.

Registration status and records

• Check whether the unit is registered with the City’s housing department and gather the rent roll, current leases, and rent increase history. These records are key for compliance and future adjustments.

Ownership and program status

• Ownership type can matter for state-law exemptions, especially for single-family homes and condos. Also confirm whether any unit is part of a subsidy or tax-credit program, which can have separate rules.

For official guidance and current procedures, start with the City’s housing department website for RSO information and contacts: City of Los Angeles Housing Department. You can review statutory language in the Los Angeles Municipal Code and statewide rules in the AB 1482 bill text.

What the RSO means for rent increases

For RSO-covered units, the City publishes allowable annual rent adjustments. These General Adjustments change over time, and you must follow the City’s current formula and notice rules before raising rent. Always confirm the current year’s limits directly with the City before issuing notices.

The RSO also allows two regulated pathways to recover certain improvement costs:

• Individual Apartment Improvements (IAI): For qualifying in-unit upgrades, subject to application, approval, amortization, and notice rules.
• Capital Improvement Pass-Throughs (CIP): For building-wide or system-level improvements, also subject to filings and strict requirements.

If your unit is not RSO-covered but falls under AB 1482, the state rent cap formula applies instead. Notice requirements still matter. Improper notice can invalidate an increase and create liability.

Evictions and just cause at a glance

RSO-covered units are protected by City just-cause rules. Common just causes include nonpayment, material lease breach, nuisance, substantial remodeling that meets legal standards, owner move-in with restrictions, and lawful withdrawal from the market under the Ellis Act. If you pursue a no-fault termination such as owner move-in, expect mandatory relocation assistance and specific notice periods set by ordinance.

AB 1482 also provides statewide just-cause protections for covered units. Whether you are operating under City or state rules, failing to follow just-cause procedures, relocation payments, or notice timelines can result in penalties, rent refunds, and enforcement.

Investor playbook for Highland Park

If you plan to acquire, renovate, or reposition a Highland Park rental property, build your strategy around RSO and state protections.

Due diligence checklist

• Confirm City location and whether RSO applies using ZIMAS and official parcel records.
• Obtain the precise build year or certificate of occupancy and compare to the October 1, 1978 cutoff.
• Gather the rent roll, copies of all leases, and proof of past rent registrations with the City.
• Check for code violations, pending complaints, prior eviction actions, or open cases.
• Verify unit legality and permit history. Unpermitted units raise risk and can derail plans.
• Review any IAI/CIP filings, approvals, or pass-throughs that affect net operating income.
• Confirm ownership entity details to assess state-law exemptions for certain property types.
• Search for past Ellis Act or condo-conversion filings that could limit future options.

Modeling and planning tips

• Budget conservative rent growth. Use the RSO’s annual caps or AB 1482’s formula, not market wishful thinking.
• Plan for relocation costs if your strategy involves substantial remodeling or owner move-in.
• Allow time for approvals. IAI/CIP increases require filings, review, and notices. They are not immediate.
• Expect longer repositioning timelines where tenant protections require temporary relocation or phased work.
• Price regulatory risk. RSO assets often trade at lower multiples because future rent growth is constrained.

Common pitfalls to avoid

• Relying on the wrong year built. Dates in public data can reflect remodels. Verify with permit history or certificate of occupancy.
• Ignoring unpermitted units. Renting unpermitted spaces can create significant liability and enforcement risk.
• Misunderstanding ownership effects. Certain exemptions depend on owner type and entity structure.
• Skipping notice rules. Defective rent or termination notices can invalidate your action and trigger penalties.
• Assuming rules never change. Annual adjustments, relocation amounts, and procedures evolve. Always confirm current numbers with the City.

Where to confirm current rules

Use these official sources before acting:

• City RSO program details and contacts: City of Los Angeles Housing Department
• Statutory language: Los Angeles Municipal Code
• Statewide protections: AB 1482 bill text and analysis
• Parcel boundary and data: ZIMAS property information
• Year built and parcel records: Los Angeles County Assessor

If you need a case-specific interpretation or plan to issue notices, consult the City’s housing department or a local real estate attorney experienced in Los Angeles landlord-tenant law.

Final thoughts

If your Highland Park property was built before October 1, 1978 and contains two or more legal units, there is a strong chance the Los Angeles RSO applies. Even if it does not, AB 1482 may still set rent and just-cause rules. Verifying coverage, documenting rent history, and modeling realistic growth are essential steps to protect cash flow and avoid costly missteps.

Ready to map your options on a specific property or portfolio move? Let’s talk through due diligence, timeline, and value-add strategies that respect the rules and your bottom line. Request a Home Valuation with Steinbeck Homes to get started.

FAQs

What is the basic RSO coverage rule in Highland Park?

• The City of Los Angeles RSO generally applies to rental units in buildings with two or more dwelling units built before October 1, 1978.

Are single-family homes in Highland Park covered by the RSO?

• Single-family homes and condos are typically exempt from the RSO, though AB 1482 may still apply depending on ownership and property specifics.

How do I confirm if my building is inside Los Angeles city limits?

• Use the City’s ZIMAS property information tool to confirm municipal boundaries and parcel details.

Where can I find my property’s official year built?

• Check the certificate of occupancy, permit history, title records, or the Los Angeles County Assessor website.

How much can I raise rent on an RSO unit?

• The City publishes annual allowable adjustments for RSO units. Confirm the current year’s limits and notice rules with the City’s housing department before issuing any increase.

What are common just causes for eviction under the RSO?

• Causes include nonpayment, material lease breach, nuisance, qualifying substantial remodeling, owner move-in with restrictions, and lawful withdrawal under the Ellis Act.

Do I owe relocation assistance for a no-fault termination?

• In many no-fault cases such as owner move-in or Ellis Act withdrawal, the City requires relocation payments and specific notice periods.

What law applies if my unit is not RSO-covered?

• AB 1482 may apply to non-RSO units, setting statewide rent caps and just-cause rules unless an exemption applies.

What records should I keep for compliance?

• Maintain copies of leases, rent rolls, rent increase notices, registration confirmations, payment histories, and any filings or approvals with the City.

Who enforces RSO rules and penalties?

• The City’s housing department enforces RSO compliance and can order fines, rent refunds, and relocation assistance when required.