The Ellis Act is a California state law allowing landlords to withdraw residential property from the rental market entirely. Triggers mandatory relocation assistance and post-withdrawal re-rental restrictions.
Ellis Act withdrawal removes a building from rental use. After withdrawal, the property can be sold, converted, or demolished. Key compliance requirements: notice to tenants (minimum 120 days; up to 365 for protected tenants), mandatory relocation assistance payments, LAHD filing, and re-rental restrictions (2–10 years depending on specifics).
Ellis Act is the standard tool for full-building withdrawal, particularly in conversion to condominium or demolition scenarios.
LA City Ellis relocation fees 2025-2026: $10,650 to $26,550 per qualified tenant. On a 20-unit building with qualified tenants, total relocation costs can exceed $500,000. Some older buildings are effectively trapped by exit economics rather than by rent control directly.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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