RSO vs JCO in Los Angeles: Complete Guide for Landlords and Property Owners (2025)
What Is the Difference Between RSO and JCO in Los Angeles?
Los Angeles landlords and property owners must navigate two critical tenant protection laws: the Rent Stabilization Ordinance (RSO) and the Just Cause Ordinance (JCO). Understanding which ordinance applies to your rental property is essential for legal compliance, avoiding costly violations, and protecting your investment. This comprehensive guide explains the key differences, eligibility requirements, and practical implications for Los Angeles rental property management.
Understanding the Rent Stabilization Ordinance (RSO)
RSO Basics and Property Eligibility
The Los Angeles Rent Stabilization Ordinance, enacted in 1978, applies to most residential rental properties constructed on or before October 1, 1978. This rent control law covers approximately 640,000 rental units across Los Angeles, making it one of the largest rent stabilization programs in California.
RSO-covered properties include:
Apartment buildings with two or more units built before October 1, 1978
Condominiums built before 1978 (with specific exceptions)
Most multi-family residential properties constructed during this period
Properties exempt from RSO:
Single-family homes (covered by JCO instead)
Condominiums where the landlord has filed proper exemption paperwork
Properties built after October 1, 1978
Owner-occupied duplexes in certain circumstances
RSO Rent Increase Limitations 2025
For the period of July 2025 through June 2026, RSO properties face strict rent increase caps:
Base increase: Maximum 3% annual rent increase
Utility allowance: Additional 1% if landlord pays tenant gas or electricity costs
Maximum total increase: 4% for properties where landlord covers utilities
These rent stabilization limits help maintain housing affordability in Los Angeles while providing predictable income parameters for property owners.
RSO Eviction Requirements and Just Cause Protections
Under the RSO, landlords can only evict tenants for just cause reasons, which fall into two categories:
At-fault evictions:
Non-payment of rent
Breach of lease terms
Nuisance or illegal activity
Refusal to sign a similar lease renewal
No-fault evictions:
Owner move-in (landlord or immediate family occupancy)
Substantial rehabilitation requiring permits
Permanent removal from rental market (Ellis Act)
Conversion to condominiums
RSO Relocation Assistance Requirements
For no-fault evictions under RSO, landlords must provide substantial relocation assistance to displaced tenants:
Standard payment: $8,500+ per unit (amounts adjusted annually)
Senior/disabled tenants: Up to $21,200+ per unit
Low-income tenants: Enhanced relocation benefits
Payment timing: Due before tenant vacates or within 15 days of notice
Understanding the Just Cause Ordinance (JCO)
JCO Implementation and Coverage
The Los Angeles Just Cause Ordinance, effective February 1, 2023, extends eviction protections to rental properties not covered by RSO. This groundbreaking legislation ensures nearly all Los Angeles tenants receive just cause eviction protections, regardless of their building's age or type.
JCO-covered properties include:
Single-family rental homes
Properties built after October 1, 1978
Condominiums exempt from RSO
Accessory Dwelling Units (ADUs) and Junior ADUs
Most rental housing not subject to RSO rent control
Key Differences: JCO vs RSO Rent Control
Critical distinction: The JCO provides eviction protections only - it does not limit rent increases like the RSO. Los Angeles landlords with JCO properties can raise rents without percentage restrictions, but they must still follow proper notice procedures and cannot use rent increases as a form of harassment.
JCO Eviction Grounds and Procedures
Similar to RSO, JCO requires landlords to demonstrate just cause for eviction, using the same at-fault and no-fault categories. However, JCO includes additional protections:
12-month minimum tenancy: Protections begin after tenant occupancy of one year
Proper notice requirements: Specific language and timeframes for eviction notices
Documentation standards: Higher burden of proof for certain eviction grounds
JCO Relocation Assistance Obligations
JCO relocation assistance differs from RSO requirements:
Minimum payment: Typically one month's rent (lower than RSO amounts)
Specific circumstances: Enhanced payments for vulnerable tenants
Timing requirements: Similar payment schedules as RSO
RSO vs JCO: Quick Reference Comparison
How to Determine Which Ordinance Applies to Your Property
Step-by-Step Property Classification
Check construction date: Properties built on/before October 1, 1978, likely fall under RSO
Identify property type: Single-family homes typically fall under JCO regardless of age
Review exemptions: Some condominiums and owner-occupied properties have special rules
Consult city records: Los Angeles Housing Department maintains property databases
Verify current status: Recent changes or renovations may affect classification
Common Classification Scenarios
Scenario 1: 1960s apartment building with 10 units
Answer: RSO applies (rent control + eviction protections)
Scenario 2: 2010 single-family rental home
Answer: JCO applies (eviction protections only)
Scenario 3: 1975 condominium with owner exemption filing
Answer: Likely JCO applies (verify exemption status)
Legal Compliance and Risk Management
Avoiding Common Violations
RSO compliance mistakes:
Exceeding annual rent increase limits
Failing to provide proper relocation assistance
Using improper eviction notice language
Not maintaining required property registration
JCO compliance mistakes:
Attempting evictions without just cause
Inadequate notice procedures
Insufficient relocation payments
Misunderstanding property coverage
Penalties for Non-Compliance
Both ordinances carry significant penalties for violations:
Civil penalties: Thousands of dollars per violation
Tenant damages: Potential liability for wrongful eviction
Attorney fees: Tenant's legal costs in successful challenges
Injunctive relief: Court orders affecting property operations
Frequently Asked Questions
Q: Can a property be subject to both RSO and JCO? A: No, properties are covered by either RSO or JCO, not both simultaneously.
Q: Do these laws apply to commercial properties? A: No, both ordinances apply only to residential rental properties.
Q: How often do relocation assistance amounts change? A: The city typically adjusts RSO relocation amounts annually based on economic factors.
Q: Can landlords challenge ordinance applicability? A: Yes, property owners can seek clarification through the Los Angeles Housing Department or legal counsel.
Getting Professional Guidance for Los Angeles Rental Properties
Navigating RSO and JCO requirements requires current knowledge of frequently changing regulations. Property owners benefit from expert guidance to ensure compliance, maximize investment returns, and minimize legal risks. Understanding which ordinance applies to your specific Los Angeles rental property is the first step in successful property management and tenant relations.
Whether you're managing RSO-controlled units with strict rent increase limits or JCO-covered properties with eviction-only restrictions, staying informed about your legal obligations protects both your investment and your tenants' rights in the competitive Los Angeles rental market.
