RSO landlords in Los Angeles may pass through certain capital improvement, capital expenditure, and registration costs to tenants only with LAHD approval. Capital improvements are split 50/50 with the tenant, and monthly add-ons are capped.
LAMC §151.07 lets landlords petition LAHD to pass through 50 percent of approved capital improvement costs, amortized over the asset's useful life and capped at a monthly dollar limit set by LAHD. LAMC §151.35 governs Capital Expenditure Program surcharges for major systems. LAMC §151.05 authorizes annual recovery of 50 percent of the RSO registration fee plus 100 percent of the SCEP inspection fee through a separate billed surcharge. Utility pass-throughs for changes from owner-paid to tenant-paid utilities require a §151.07 petition and LAHD-approved adjustment. Pass-throughs must be itemized on the rent bill, never folded into base rent, and removed once the amortization period ends.
Unapproved or hidden pass-throughs are excess rent, recoverable by the tenant, and expose the landlord to RSO penalties of up to three times the overcharge plus LAHD fines.
Los Angeles, CA
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Los Angeles, CA
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See how Los Angeles's pass-through charges rules stack up against other locations.
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