Unbeknownst Rent Control: Tenants in Newly Built Los Angeles Apartments Unaware of Protections

Title: Hidden Rent Control Protections in Los Angeles Leave Tenants Unaware

Alexa Castelvecchi, a resident of a modern apartment building in Hollywood, was shocked to learn that her unit falls under the city’s rent stabilization ordinance, offering her protections she didn’t know she had. With the end of her lease approaching, she had been worried about potential rent increases in her nearly $4,000 per month apartment.

Many tenants in newly built rental properties across Los Angeles are unaware that they live in rent-controlled units, thanks to an obscure city rule that requires some new buildings to be subject to rent caps. Developers have constructed over 10,000 such units since 2007, adding to the city’s stock of rent-controlled housing.

While these buildings offer protections for tenants, the lack of awareness about their rent-controlled status raises concerns. Some developers, like Leeor Maciborski, knowingly build properties that fall under rent control, citing the financial benefits of predictable annual rent increases.

However, tenant advocates argue that the replacement of older rent-controlled units with new ones is detrimental, leading to evictions and higher initial rents. The demolition of older units has removed over 13,000 rent-controlled units from the market since 2007, exacerbating the city’s affordability and homelessness crisis.

Despite the potential benefits of newly constructed rent-controlled properties, the real estate industry and housing economists argue that imposing rent caps on all new buildings could deter developers and worsen supply shortages, ultimately driving up rents.

Tenants living in rent-controlled buildings, both old and new, are encouraged to educate themselves about their rights. The Los Angeles Housing Department requires landlords to post notices about rent control at the property, but many residents remain unaware of their building’s status.

For tenants like Monique Mendoza, who pays $3,800 a month for a townhome in Boyle Heights, knowing about rent control protections would offer peace of mind in the face of rising housing costs. Increased education and outreach efforts are needed to ensure tenants understand their rights and protections in Los Angeles’s complex rental market.