The City of Burbank is moving ahead with a sweeping new rent control framework that could reshape the economics of owning and operating rental housing in one of Los Angeles County’s most stable markets. In late October, the City Council voted 3–1 to direct staff to draft a full ordinance that caps annual rent increases and adds new relocation fee and eviction restrictions. For multi-family investors, the proposal signals another tightening turn in Southern California’s regulatory landscape.
A 4% Rent Cap—and Costly Relocation Triggers
At the heart of the proposal is a 4% annual rent increase cap for apartments built before February 1995. If an owner raises rent above that threshold, the tenant would have two options: either accept the higher rent or trigger a relocation payment from the landlord equal to three months of the new rent amount.
Unlike many city ordinances that target only older, rent-controlled housing, Burbank’s proposal goes further. The same relocation-fee rule would apply across the board—to newer multi-family properties, single-family rentals, condos, townhouses, and ADUs. For these newer properties, the effective cap would align with the state’s rent-stabilization law: whichever is lower between 10% or CPI + 5%—currently around 8% for Los Angeles County.
If approved, these rules would limit upward rent adjustments and expose owners to new cash-flow liabilities when rents rise faster than allowed.
Expanding “Just Cause” and Tightening Remodel Rules
Beyond rent caps, Burbank’s City Council directed staff to draft additional tenant-protection measures that could have operational consequences for landlords. Those include:
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Higher relocation payments in certain “no-fault” evictions, especially when tenants are elderly, disabled, or have other qualifying characteristics.
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Stricter limits on remodel-based evictions, narrowing what qualifies as a “substantial remodel” and preventing cosmetic improvements from being used to vacate units.
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An expansion of “Just Cause” eviction protections to all rental housing, regardless of building age or type.
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And even a potential rental registry, despite the city projecting a multi-million-dollar budget deficit.
These measures are part of a growing regional trend toward stronger local tenant protections that exceed state requirements—often justified by political pressure, rather than data showing rapid rent growth. According to CoStar data cited by the Apartment Association of Greater Los Angeles (AAGLA), Burbank rents have remained essentially flat over the past two years.
Implications for Multi-Family Investors
For property owners and developers, the financial implications could be significant. A 4% rent-cap environment constrains rent-growth assumptions, particularly for value-add investments where returns rely on repositioning or substantial rehabilitation. The relocation-fee trigger adds a direct financial risk: raising rents too quickly could now carry an immediate three-month penalty.
The broader scope—covering both pre-1995 and newer properties—means even investors who believed they were protected under state law will face additional limits. Combined with added compliance burdens from new reporting or remodel restrictions, the city’s direction could compress margins, complicate underwriting, and weigh on long-term valuations.
Still, the proposal remains in draft form. Investors should track the City Council’s deliberations closely to understand when the ordinance might return for a formal vote and whether final amendments could soften or expand its reach.
The Bottom Line
For now, Burbank is positioning itself as one of the more aggressively regulated rental markets in Southern California. The ordinance would impose some of the strictest local caps in the region while layering on new fees and compliance requirements.
Multi-family owners and investors should model for limited rent growth, factor in potential relocation liabilities, and watch for changes to “Just Cause” and remodel rules that could affect repositioning strategies. With city leadership leaning toward tenant-advocacy priorities, proactive engagement will be critical to shaping the final outcome.
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