Hopefully, if you own apartments in the City of Los Angeles and are under the L.A. Rent Stabilization Ordinance, you have already paid your building’s registration fee which was due by February 29, 2020. The city raised the fee per unit from 24.50 to 38.75 per unit for 2020. They have also changed how you can collect half of this fee from your tenants. Please note the changes below.
Collect $19.37 Registration Fees – MONTHLY
NEW FOR 2020: The 2020 registration fee has been raised to $38.75 per unit. Owners can still pass-through 50% of the costs of the RSO fee but may do so only on a monthly basis in the amount of $1.61 per month instead of the previous one-time charge. A 30-Day Notice of Change of Terms of Tenancy (AOA Form 102) must be served to each tenant after you pay your bill before you can collect this fee.
IMPORTANT NOTE: The 30–day notice of the pass-through must be accompanied with a copy of your Rent Stabilization registration certificate to show that you paid the fees.
Code-Enforcement Pass-Through Fees
The 2020 SCEP fee remains unchanged and is still $43.32 per unit. Owners can still pass-through 50% of the costs of the RSO fee on a monthly basis in the amount of $3.61 per month. A 30-Day Notice of Change of Terms of Tenancy (AOA Form 102) must be served to each tenant after you pay your bill before you can collect this fee.
NOTE: Both of these fees may not be included in the base rent when calculating the annual increase.
Other Los Angeles Rent Stabilization Updates and Reminders
- SECURITY DEPOSIT INTEREST: Please note that the required 2020 interest that must be paid on security deposits for units in L.A. City is 0.23 percent. A landlord may pay tenants the actual rate of interest earned if security deposits are kept in a separate account by providing a copy of the bank statement showing the actual interest rate earned for the year. Be sure to pay your tenants once a year or upon move-out.
- ALLOWABLE ANNUAL RENT INCREASE: The Los Angeles Rent Control’s annual rent increase is currently 4% through June 30, 2020. We will update you on any changes to this when the information becomes available.
- NOTICES POSTED: Be sure to have the below required notices posted in a conspicuous place in your building: (1) Fair Housing Sign, (2) Toxic Substance Warning (Prop 65), (3) LARSO Notice to Tenants, (English and Spanish on form) (4) Phone Number to Call for Emergencies
Patricia A. Harris is Senior Editor of the Apartment Owners Association News and Buyers Guide.