By Kyle Crown, President, Crown Commercial Property Management

As someone who spends every day dealing with the intricacies of the Greater Los Angeles Area rental market—talking with property owners, working with tenants, and navigating the never-ending stream of regulations—I can tell you this: 2026 will reward the owners who stay informed and make intentional decisions. The market isn’t turbulent, but it is shifting, and if you own multifamily property here in the Los Angeles Area, you’ll want to keep your finger on the pulse.

A Cooler Market With a Few Clear Bright Spots

Rents in 2026 likely aren’t climbing the way they used to. The double-digit growth years are behind us (for now, at least), and we’re settling into a more predictable, moderate pattern. But not all submarkets are behaving the same. Properties near the Westside’s tech employers, Hollywood’s entertainment footprint, and certain pockets of the Valley are still seeing healthy rent trajectories. Meanwhile, buildings in neighborhoods with a surge of new inventory are feeling the pressure.

The key for you this year is recalibration. Relying on last year’s rent strategy is a recipe for unnecessary vacancy. Tenants are paying attention to rent comps, and so should you. When we price units for clients, the difference between a one-day vacancy and a three-week vacancy often comes down to thoughtful pricing and strong presentation—not wishful thinking.

Vacancies Are Up Slightly, But Quality Is Still King

Across the City of Los Angeles and surrounding areas, a modest increase in vacancies is becoming the new normal. This isn’t a market-wide slump; it’s simply the delayed pipeline of construction finally hitting the ground. But even in this environment, well-maintained units are leasing almost immediately. Clean common areas, modern fixtures, bright lighting, these things matter more than ever. In 2026, the owners who invest in their building’s appeal will stay ahead of the curve. A multifamily property that looks inviting doesn’t sit empty. Tenants are simply being more selective, and they’re willing to pay for a hassle-free living experience.

Rent Stabilization Oversight Is Tightening—And Owners Need to Adapt

If you operate rent-stabilized buildings in the City of Los Angeles and surrounding jurisdictions, you’ve probably noticed the city has become more rigorous about enforcement. In 2025, the Los Angeles City Council voted to move the goalposts on property owners again. Now it’s even harder than ever before to increase rents on existing tenants in rent-stabilized buildings. In 2026, I expect the city to continue getting more aggressive in their enforcement of these even tighter rent control rules. We’re seeing more inspections, more documentation requests, and fewer exceptions granted for “paperwork mistakes.”

As a property owner, you need to treat compliance as a core operating system, not an afterthought. Whether it’s allowable annual increases, relocation obligations, or habitability requirements, every detail matters. And as the person responsible for protecting your investment’s long-term health, you’ll want your files, notices, and maintenance records ready for scrutiny—because it’s more likely than not that someone will ask to see them.

Operating Costs Are Rising—Plan for It Now

We all know expenses are trending up. Insurance premiums, utilities, labor, materials, they’re all eating into margins faster than most owners realize. By 2026, these increases are no longer temporary—they’re structural. 2026 is the year to look critically at your building’s operating efficiency. Preventative maintenance, vendor negotiations, and smarter scheduling can make a meaningful difference. The multifamily owners who treat their buildings like businesses—not just investments—will come out ahead.

Renovations and ADUs Are Still High-ROI Moves

Among all these challenges, there’s one clear opportunity: well-planned upgrades are still outperforming the market. Renovated interiors, refreshed common areas, and functional ADUs (accessory dwelling units) continue to attract qualified tenants willing to pay for convenience, privacy, and comfort. ADUs remain a strong play for multifamily owners with underutilized space. When designed and managed correctly, they provide stable income without the headaches of adding more major infrastructure. The demand is there; the key is thoughtful execution.

Los Angeles is entering a more balanced—and more competitive—phase of its rental market. As the president of a property management company that works with multifamily owners across the city every day, I can tell you that your success this year will depend on staying nimble. Pay attention to what tenants want, keep your units competitive, tighten your operations, and stay ahead of compliance rather than reacting to it. And, if you do those things, 2026 won’t be a year you’re simply managing through—it’ll be a year where your property performs at its strongest.

Kyle Crown is the President of Crown Commercial Property Management. He holds a B.S. in business from the University of Pennsylvania’s Wharton School. For more information, Mr. Crown may be reached at (323) 255-9400.