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I get this question every day. LA City amended its 40-year rent control formula, restricting increases to 90% of CPI. Pasadena's Measure H allows 2.25% rent increases. All the while insurance, trash, and water have doubled for many owners. Here is who's been buying our inventory: Doctors, lawyers, and financiers looking for tax shelter. Local operators who know the current landscape and have found new ways to add value. Think ADUs, structured utility and capital improvement b

As Los Angeles regulatory policies and increasing operating costs drive out mom-and-pop landlords, the city’s rental landscape is undergoing an ownership shift with implications for pricing and housing stock quality. “Demand to sell is really frothing over the top,” said Kian Maronde, associate director of investments for a local Marcus & Millichap team that focuses on multifamily buildings between five and 30 units. Since the start of 2024, Maronde said his team has brokere

Last week, I attended a landlord lunch hosted by Pasadena Housing Providers to discuss Fair Return Petitions, including how owners may qualify, file, and seek approval for rent adjustments beyond standard annual caps. While the presentation focused on a Pasadena case study, similar Fair Return provisions exist within Los Angeles rent stabilization frameworks as well. What Is Fair Return? California courts have consistently held that rent control ordinances must provide proper

Expenses vs. Interest Rates The biggest pain point for owners continues to be expenses, not interest rates. Many sellers tell me they're waiting for interest rates to come down before considering a sale. While lower rates would certainly help financing and improve buyer demand, they have not solved the challenges facing many Los Angeles and Pasadena apartment owners. Taking Control of Your Operating Expenses Operating expenses have risen 20–40% for most owners in the past 5 y

When ED1 was signed into law at the end of 2022, it felt like the floodgates were finally opening for affordable housing in Los Angeles. Developers rushed in. Permits were filed. Projects moved. Now, a little over 3 years later, the first wave is delivering. So what’s the issue? These deals were underwritten assuming low-income tenants would be placed using government vouchers. But in 2025, LA hit a budget shortfall and stopped issuing new vouchers. That changed the math comp