What's the Difference Between RSO and JCO in Los Angeles? A Complete Guide for Property Owners and Tenants
Los Angeles property owners and tenants must navigate two critical rental housing laws: the Rent Stabilization Ordinance (RSO) and the Just Cause Ordinance (JCO). Understanding which ordinance applies to your property determines rent increase limits, eviction requirements, and legal obligations that can significantly impact your investment or tenancy.
Understanding Los Angeles Rent Stabilization Ordinance (RSO)
The Los Angeles Rent Stabilization Ordinance is the city's primary rent control law, enacted to protect tenants in older rental properties from excessive rent increases and arbitrary evictions.
Which Properties Fall Under RSO?
RSO applies to most rental units constructed on or before October 1, 1978. This includes:
Apartment buildings with two or more units
Duplex and triplex properties
Condominiums used as rentals (built before the cutoff date)
Mobile home parks
Key RSO exemptions include:
Single-family homes owned by individuals (not corporations)
Condos individually owned and rented
Properties built after October 1, 1978
Housing accommodations in hotels, motels, and boarding houses
RSO Rent Increase Limitations
Under RSO, rent increases are strictly capped. For July 2025 through June 2026, the maximum allowable increase is 3% annually, with an additional 1% if the landlord pays tenant utilities. These percentages are recalculated yearly based on the Consumer Price Index.
Landlords must provide 30 days written notice for rent increases under 10% and 60 days notice for increases of 10% or more (though increases above the RSO cap are generally prohibited).
RSO Just Cause Eviction Requirements
RSO properties require just cause for all evictions, meaning landlords cannot terminate tenancies without specific legal grounds:
At-fault just causes:
Non-payment of rent
Breach of lease terms
Nuisance or illegal activity
Refusal to sign a similar lease renewal
No-fault just causes:
Owner or family member move-in
Ellis Act withdrawal from rental market
Substantial rehabilitation requiring vacant possession
Demolition with proper permits
RSO Registration and Compliance
All RSO properties must undergo annual registration with the Los Angeles Housing and Community Investment Department (HCIDLA). Registration fees vary by unit count and property type, typically ranging from $39-$280 per unit annually. Failure to register can result in penalties and inability to raise rents.
Understanding Los Angeles Just Cause Ordinance (JCO)
The Just Cause Ordinance, enacted in 2021, extends eviction protections to rental properties not covered by RSO, primarily newer buildings and individually-owned single-family homes.
Which Properties Fall Under JCO?
JCO covers most rental properties built after October 1, 1978 that aren't subject to RSO, including:
Apartment buildings constructed after 1978
Single-family homes owned by individuals
Individual condominiums used as rentals
Townhomes and duplexes built after the RSO cutoff
JCO exemptions include:
Properties already covered by RSO
Owner-occupied buildings with four units or fewer
Transitional housing and certain supportive housing
Properties where tenants share bathroom or kitchen facilities with the owner
JCO Eviction Protections
While JCO doesn't impose rent control, it requires just cause for evictions using similar grounds as RSO. The ordinance prevents landlords from evicting tenants without valid legal reasons, providing stability in properties that would otherwise have minimal tenant protections.
JCO Relocation Assistance Requirements
For no-fault evictions under JCO (such as owner move-in or substantial renovations), landlords must provide relocation assistance typically equal to one month's rent. This payment helps displaced tenants secure alternative housing and acknowledges the hardship caused by involuntary displacement.
Key Differences: RSO vs JCO Comparison
Rent Control Provisions
RSO: Strict annual rent increase caps (currently 3-4%)
JCO: No rent control limitations (market-rate increases allowed)
Property Coverage
RSO: Buildings constructed on or before October 1, 1978
JCO: Newer properties (post-1978) not covered by RSO
Registration Requirements
RSO: Mandatory annual registration with fees
JCO: No registration requirements
Relocation Assistance
RSO: Required for specific no-fault evictions, amounts vary
JCO: One month's rent for no-fault evictions
How State Law AB 1482 Affects Los Angeles Properties
California's Tenant Protection Act (AB 1482) adds another layer of regulation for properties built before February 1, 2005. If your property isn't covered by RSO, AB 1482 may still impose:
5% + local inflation annual rent increase cap (often 8-10% total)
Just cause eviction requirements
Relocation assistance for certain no-fault evictions
This means some post-1978 Los Angeles properties face dual regulation under both JCO and state law.
Determining Which Ordinance Applies to Your Property
Step 1: Check your property's construction date
Built on/before October 1, 1978 = Likely RSO
Built after October 1, 1978 = Likely JCO
Step 2: Verify property type and ownership structure
Individual ownership of single-family homes may exempt from RSO
Corporate ownership typically subjects properties to applicable ordinances
Step 3: Consult HCIDLA records or legal counsel for complex situations
Compliance Best Practices for Los Angeles Landlords
For RSO Properties:
Complete annual registration by required deadlines
Maintain detailed rent increase documentation
Provide proper notice periods for any tenancy changes
Understand all 16 just cause grounds before initiating evictions
For JCO Properties:
Document legitimate reasons for any eviction proceedings
Calculate and reserve relocation assistance funds
Stay informed about overlapping state law requirements
Maintain clear lease terms and violation notices
Common Violations and Penalties
RSO violations can result in:
Rent rollbacks to legal amounts
Penalties up to $10,000 per violation
Attorney fees for successful tenant challenges
Criminal prosecution for willful violations
JCO violations may include:
Wrongful eviction damages
Relocation assistance penalties
Legal fees and court costs
Potential civil rights violations
Frequently Asked Questions
Q: Can a property be subject to both RSO and JCO? A: No, these ordinances are mutually exclusive. Properties fall under either RSO or JCO based primarily on construction date.
Q: Do condos follow the same rules? A: Individual condo ownership typically exempts from RSO, making them subject to JCO if used as rentals.
Q: How often do rent increase caps change? A: RSO caps adjust annually based on economic factors. JCO has no rent caps, but state law AB 1482 may apply.
Q: What happens if I don't register my RSO property? A: Failure to register prevents legal rent increases and can result in significant penalties.
Understanding Los Angeles rental housing laws protects both property owners and tenants from costly legal disputes. Whether your property falls under RSO's comprehensive rent control or JCO's eviction protections, compliance ensures smooth landlord-tenant relationships and preserves your investment value in one of America's most regulated rental markets.
Need help determining which Los Angeles rental ordinance applies to your property? The Borges Real Estate Team provides expert guidance on RSO, JCO, and state law compliance. Contact us today for personalized assistance, or check your property value instantly: https://justin.lametrohomefinder.com/seller
Author: Justin Borges
Justin Borges is the Team Leader of The Borges Real Estate Team at eXp Realty and widely recognized as the best realtor in Los Angeles. With over a decade of experience and more than $200 million sold, Justin leads one of the top-performing real estate teams in Los Angeles County. Known for his advisor-first approach, he helps homeowners, buyers, and investors make confident real estate decisions—focusing on strategy, clarity, and long-term success rather than just transactions.
