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Substantial Remodel No Longer Valid Reason for Eviction in L.A. – What Rental Property Owners Must Know

As of July 1, 2025, the Los Angeles City Council has enacted another major change that significantly impacts local housing providers. Under an urgency ordinance passed unanimously, “substantial remodel” is no longer recognized as a lawful, no-fault reason to terminate a tenancy for non-RSO properties in the City of Los Angeles.

This abrupt policy shift affects all residential rental properties not subject to the City’s Rent Stabilization Ordinance, including:

  • Single-family homes

  • Condominiums

  • Accessory Dwelling Units (ADUs)

  • Multifamily buildings constructed after October 1, 1978

 

What Changed?

Property owners can no longer terminate a tenancy based on the need to conduct major repairs—such as plumbing, electrical, or structural work—or even to remove hazardous materials like mold or asbestos. Instead, landlords will be required to provide voluntary, temporary relocation to tenants, with specific procedures to be outlined by the Rent Adjustment Commission. During the repair period, tenants will continue paying rent, but landlords must cover all relocation and housing expenses. No exceptions.

Penalties for Non-Compliance

Landlords found violating this new policy may face:

  • Civil penalties up to three times actual damages

  • Fines from $2,000 up to $10,000 per violation

  • Attorney’s fees

  • An additional $5,000 penalty per violation if the displaced tenant is a senior (65+) or person with disabilities

How This Affects You

This ordinance puts small and independent rental housing providers in a difficult position:

  • You must pay to relocate tenants for necessary repairs.

  • You're still on the hook for repair costs, even if rent income is limited or paused.

  • Some may choose to defer important but non-emergency maintenance, risking long-term deterioration or forced property sales.

  • In units not capped by RSO or TPA, landlords may now be incentivized to raise rents aggressively—the very scenario the Council claims to be preventing.

Ordinance Linked Above

Rather than addressing the housing affordability crisis with balanced policy, the City Council has doubled down on anti-landlord legislation that may ultimately discourage maintenance, exacerbate housing quality issues, and strain small property owners. Looking ahead, both Bob Blumenfield and Curren Price will be termed out of the City Council in 2026. That opens the door for housing providers to get involved and back candidates who are actually interested in facts and workable solutions—not just political talking points. If we want to see fair, balanced housing policy in Los Angeles, it starts with putting the right people in office.

What You Need to Know

  • Effective Immediately: Substantial remodels can no longer justify evictions under the Just Cause Ordinance in Los Angeles.

  • Landlords Must Pay: You’re now financially responsible for relocating tenants during necessary renovations.

  • Severe Penalties: Violations come with stiff fines and potential legal exposure.

  • All Units Are Impacted: Even those not under RSO or TPA face limitations through the Just Cause Ordinance.

  • 2026 Elections Matter: Pay attention to upcoming races that may reshape City housing policy.

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