cost recovery graphic with text

The Rent Stabilization Ordinance (RSO) does not require the landlord to obtain approval from the tenants before making an improvement to the property. There are six programs that allow owners to recover the cost of improvements to their rental properties from their tenants depending on the circumstances and nature of the improvement. The Los Angeles Mayor’s Tolling Orders issued in 2020 do not apply to the LAHD Cost Recovery Application deadlines. In addition, the Just & Reasonable Program is a rent adjustment program that provides a mechanism to provide relief from rent increase restrictions. Each link below provides program information and an application, if necessary.

Contemplating capital improvements?

The Capital Improvement Program splits the cost of approvable expenditures 50/50 between the landlord and all tenants benefiting from the improvement. Landlords are not required to obtain the approval of the tenant before making a capital improvement. 

Doing seismic retrofit work?

Find out what you have to do to comply with the new mandate and recover costs via a temporary rent surcharge to tenants.

Repairing natural disaster damage?

Eligible improvements include work mandated by a federal, state or local agency through the Health, Safety or Building Codes, or, due to the repair of damage caused by a natural disaster, e.g. fire, flood, or earthquake.

Renovating the property?

Landlords wanting to take advantage of the Primary Renovation Cost Recovery program must first complete the requirements for the Tenant Habitability Program. Once the work has been completed, an application can be prepared for a Primary Renovation project. 

Just and Reasonable (J&R) Rent Adjustment

The Just & Reasonable Program is a mechanism to obtain a fair return on the landlord’s investment in rental property. It compares the Net Income from the first year for which records are available with the Net Income in the Current Year.

Replacing detectors or alarms?

The Rent Stabilization Ordinance (RSO) allows landlords to recover the purchase price and installation costs of smoke detectors in each unit and on the property at the rate of $3.00 per month for permanent electric smoke or combination smoke/carbon monoxide detectors.

Calculating tenant rent increases correctly

The rent for units subject to the Rent Stabilization Ordinance may be increased or decreased for several allowable reasons. Some methods allow for temporary rent surcharges and other methods allow for permanent rent increases. 

(Visited 21,367 times, 14 visits today)

Comments are closed.