Los Angeles, CA Rental Property Rules: Pass-Through Charges (2026)
Key Facts
- Capital improvement
- LAMC §151.07; 50% tenant share
- Capital expenditure
- LAMC §151.35 surcharge
- Registration fee
- LAMC §151.05; 50% recoverable
- SCEP fee
- 100% passable monthly
- Approval
- LAHD petition required
Summary
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.
1947.12. (a) (1) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded.
Full Breakdown
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.
Violations & Fines
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.
Frequently Asked Questions
Can my landlord raise base rent for a new roof?
Do pass-throughs end?
Sources & Official References
Other rules in Los Angeles
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