What Happens If I Inherit a Tenant in a Rent-Controlled Property?

Inherited a rental property in Los Angeles? If it has a tenant — especially under rent control — you’ll need to follow strict city rules. This guide explains what happens when you inherit a tenant in a rent-controlled unit and what your rights and responsibilities are as the new landlord.

Understanding Your Role as an “Accidental” Landlord

If you’ve inherited a tenant-occupied property in the City of Los Angeles, and it was built on or before October 1, 1978, there’s a strong chance it falls under the Rent Stabilization Ordinance (RSO).

As the new landlord, here’s what you must do:

• ✅ Register the Property: File with the Los Angeles Housing Department (LAHD) within 60 days of becoming the owner.

• ✅ Honor Existing Lease Terms: You can’t change the lease or raise rent beyond RSO limits until the lease expires (unless it already allows increases).

• ✅ Follow Notice Requirements: All rent increases or eviction notices must follow RSO guidelines — 30 days' notice for increases up to 10%.

➡️ Learn more: RSO Overview – LAHD

Your Rights as the New Landlord

Even under rent control, you still have important rights:

• 🔹 Annual Rent Increases
  For 2025–2026, you may increase rent by 3%, plus 1% more if you pay for gas/electric.

• 🔹 Just Cause Evictions Allowed
  You may evict for valid reasons including:

  • Non-payment of rent

  • Breach of lease

  • Owner or family member move-in (requires relocation assistance and compliance)

• 🔹 Exemption Options
  If the property qualifies (e.g., owner-occupied 4-unit or fewer), you may apply for an exemption from certain rules.

Your Legal Responsibilities Under Rent Control

Inherited landlords are held to the same standards as any other landlord under the RSO:

• Maintain Habitability
  You’re responsible for keeping the property up to code and safe.

• File Notices with LAHD
  All eviction or tenant buyout notices must be submitted to LAHD within 3 business days.

• Pay Relocation Fees for No-Fault Evictions
  If you plan to move in or use the Ellis Act to remove the unit from the rental market, you may owe tenants $8,500 to $21,200 depending on their age, income, and tenancy length.

➡️ More info: LAHD – Renter Protections

Step-by-Step Checklist for Inherited Landlords

Real Example (Hypothetical)

You inherit a triplex in Highland Park, built in 1965. One tenant has lived there for 12 years, paying $950/month.

• You cannot raise the rent more than 3% in 2025–2026 — that’s $28.50/month.

• You must register the unit with LAHD.

• If you plan to move in, you’ll need to give 60 days' notice and pay relocation assistance.

• You’ll be responsible for filing proper forms with LAHD for any action.

Call to Action

Have questions about inherited tenants in Los Angeles? The Borges Real Estate Team has helped dozens of probate clients navigate these complex situations. Let’s talk.