LA City Council Amends Just Cause for Eviction Ordinance: What Landlords Need to Know

The Los Angeles City Council recently passed an amendment to the Just Cause for Eviction Ordinance (JCO), which officially went into effect on January 27, 2025. This amendment introduces significant changes that impact landlords and property owners across the city. Whether you're an absentee owner, an investor, or a landlord considering your options, it's crucial to understand how these updates affect you and what steps you can take next.

Key Changes in the Just Cause for Eviction Ordinance

The latest amendment to the JCO introduces stricter regulations on when and how landlords can evict tenants. Here are the most notable changes:

1. Expanded Tenant Protections: More rental units are now covered under the JCO, including certain single-family homes and ADUs that were previously exempt.

2. Higher Relocation Assistance Costs: If landlords choose to evict tenants under no-fault just cause (such as owner move-in or substantial renovations), they must provide increased relocation assistance.

3. Mandatory Rental Registration: Landlords are now required to register their rental properties with the city annually, ensuring compliance with tenant protection laws.

4. Stricter Requirements for Renovation-Related Evictions: Landlords must prove that renovations require vacancy and obtain necessary permits before evicting a tenant.

5. Enhanced Penalties for Non-Compliance: Fines and legal consequences for wrongful evictions have been increased, making it riskier for landlords to proceed without proper legal guidance.

Pros and Cons of the Amendment

Pros:

• Stronger Tenant Protections: Ensures stability for renters and prevents unnecessary evictions.

• Encourages Property Maintenance: With stricter rules around renovation-related evictions, landlords must provide clear justification before removing tenants.

• More Transparency in Rental Housing: Mandatory registration helps track rental units and maintain a fair housing market.

Cons:

• Increased Costs for Landlords: Higher relocation fees and penalties make eviction more expensive.

• More Bureaucratic Hurdles: Registering properties and obtaining approvals adds administrative burdens.

• Potential Market Impact: Stricter regulations could lead some landlords to sell their properties rather than comply, reducing the availability of rental housing.

Options for Landlords Looking to Liquidate

If you’re a landlord who wants to avoid the complications of these new regulations, you have options:

1. Sell to an Investor: Many investors are looking for rental properties and may be willing to purchase your property with tenants in place.

2. List on the Market: I can help you list and sell your property for top dollar, ensuring a smooth transition for both you and your tenants.

3. Off-Market Sales: If you prefer a discreet sale, I have connections with buyers interested in off-market opportunities.

4. 1031 Exchange: If you want to reinvest in a more landlord-friendly market, I can guide you through a tax-deferred exchange.

How I Can Help

Navigating the changing landscape of rental property ownership in Los Angeles can be challenging. Whether you’re looking to sell, find alternative investment opportunities, or simply understand your options, I’m here to help. As an experienced real estate broker specializing in investor transactions, I can provide expert guidance to ensure you make the best decision for your portfolio.

Let’s Discuss Your Next Move

If you’re considering selling your property instead of dealing with new regulations, let’s chat! I can provide a market analysis and a strategy tailored to your goals. Contact me today to explore your options and maximize your investment.