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Inglewood Enacts an Emergency Rent Control Measure

Notice of Rent Increase

According to Curbed LA, Inglewood will impose an immediate 5 percent cap on rent increases for any apartment buildings and duplexes built before February 1, 1995. This “emergency measure” will be in effect for the next 45 days as of March 5, with the possibility for a year-long extension. The restrictions won’t apply to single-family homes and condos.

As California landlords continue to price out tenants, displacement rates have spiked, causing city officials to begin implementing rent control across the region. At the same time, reports show that jobs are on the rise but housing is limited statewide.” So as rental rates rapidly increase, there’s also a shortage of unit availability.

While Inglewood rental prices are more reasonable than surrounding areas, residents also have lower household incomes — the report claims an average of $46,389 compared to a countywide $61,015. Because most Inglewood residents rent, the income gap is worsened by an “exorbitant” rental price increase of 10.8 percent since 2016. This outpaces the 7 percent increase in nearby areas.

On the heels of the rent caps, Inglewood has also enforced stricter eviction policies, making it harder to remove tenants unless “the underlying reason is for criminality or drug use.” Curbed LA claims that after a barrage of stories from residents facing displacement, Inglewood’s city council unanimously voted to include the eviction moratorium as extra protection for tenants, in addition to providing relocation assistance for those evicted.

Inglewood’s city officials are not alone in attempts to limit price gouging. In the wake of fires that devastated California in 2018, many newly homeless residents have been forced to seek immediate housing and are hard-pressed to find affordable rates. Despite the housing crisis, the state committee has recently rejected a bill to expand rent control throughout California. They have, however, voted in a law preventing price gouging in times of disaster.

Current California laws protect a landlord’s ability to change rental prices after a lease’s term has ended, especially with demands to meet market rate. Since LA’s 1979 Rent Stabilization Ordinance, caps on a yearly rent increase have stayed between 3 to 8 percent. This hasn’t prevented landlords of buildings constructed after 1978 from fluctuating their rates as they see fit. They need only provide sufficient notice to tenants before hiking the prices.

For Rent sign in front of new houseWith the threat of rent control expanding statewide, cost-wary developers have also dramatically halted new construction on rental housing. They’re concerned that units won’t be as profitable, especially because California high court ruled that certain cities can force developers to include affordable units in new apartment buildings. Specifically, in the LA area, “developers building 20 or more housing units must offer 15% of them at below-market rates or pay into a city fund.” This lack of construction continues to contribute to the statewide housing shortage.

The initial report from LA Curbed finds that “fewer than 35 percent of homes are owner-occupied” in Inglewood, so the need for sensible rental pricing is dire. The current rate for Inglewood rental units is $1,275 per month, compared to $1,900 countywide, so for the time being, the area is still among the more affordable options.

Real Property Management California Coast will help you comply with Inglewood regulations, including tenant-landlord law and evictions. Always know you’re in the right. Rely on our licensing and insurance to save time and avoid costly mistakes. Contact us for more information.

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