In LA RSO context, a "prior tenant" is the most recent tenant of a unit who vacated voluntarily. Prior-tenant status can affect allowable rent setting and specific RSO rules.
When a unit becomes vacant through voluntary tenant departure (not eviction or buyout), the landlord can typically reset rent to market for the new tenant — subject to RSO rules. Some RSO provisions reference the prior-tenant situation specifically (e.g., maintaining certain tenant protections during transition periods).
For LA RSO-covered buildings, tracking unit vacancy histories (tenant move-outs, rent resets) matters for both compliance and valuation. Clean documentation of voluntary turnovers supports market-rent underwriting on those specific units.
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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