LA implemented emergency rent freezes during the 2020–2023 COVID period preventing rent increases on RSO-covered buildings. The freezes ended in 2024 but left ongoing reporting obligations.
Between April 2020 and January 2024, LA City froze allowable rent increases under RSO. Landlords who attempted increases during this period face clawback and penalty exposure. Proper documentation of the frozen baseline is important for any subsequent rent increase under the resumed RSO formula.
For LA multifamily sellers in 2026, a clean rent history that documents compliance with the COVID freeze period and appropriate resumption of allowable increases is a diligence plus. Buildings with rent increases during the freeze period face potential tenant claims — a real risk during buyer due diligence.
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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