Thinking about investing in rental properties in Los Angeles? You’re not alone. LA has long been a hot market for real estate investors, but with high prices and strict rental laws, it’s not always an easy decision.
If you want to succeed in LA’s rental market, you need to know everything about the county, its cities, and the people—insight you can only get from local experts like us.
Let’s break it down so you can figure out if LA is the right move for you.
Why LA is Still Appealing for Landlords
Despite its challenges, Los Angeles remains one of the strongest rental markets in the country. With 3.8 million people in the city and 10 million in the county, the renter pool is massive—and with home prices becoming unaffordable for most at a median cost of $950k, more and more of its citizens have become renters competing for the limited rental inventory.
Of course, LA is always in demand due to the entertainment, tech, and healthcare job markets that bring high-earning workers and attract aspiring artists. The Greater LA area is a vacation destination and tourist attraction, building a market for short-term rentals alongside longer leases as people come to live amongst the stars.
Outside of rental income, homes in many Los Angeles neighborhoods continue to appreciate 6-8% annually, helping to add to the long-term value of investing in LA rental properties.
Of course, it’s not all sunshine and easy profits. Rent control laws are strict, property prices are high, and competition is fierce. But if you invest wisely, the potential rewards are there.
Finding The Best Areas for Rental Investments
The right neighborhood can make all the difference when looking for investment properties. If you want consistent demand, long-term tenants, and minimal headaches, the area must be safe, desirable, and landlord-friendly.
Here are some areas that tick some or all of those boxes:
- Glendale, Burbank, and Studio City: Safe, stable, and full of professionals and families looking for quality rentals.
- Silver Lake & Echo Park: Trendy neighborhoods with strong rental demand from young professionals and creatives but higher turnover.
- Culver City: Part of LA’s booming Silicon Beach tech hub, attracting high-income renters but limiting your renter pool due to higher pricing.
- Highland Park & Mt. Washington: Up-and-coming areas with strong appreciation potential as the areas continue to develop.
- Valley Village: A family-friendly area that’s expensive but offers higher chances of long-term tenancies. Also, personally recommended!
On the flip side, some areas come with higher risks. Avoid locations with high crime rates, major homeless encampments, or aging buildings that attract frequent turnover. Nobody wants to worry about their safety or deal with constant maintenance issues—and neither do you.
Also, watch out for strict local rent control laws—some cities, like Pasadena, have extreme pro-tenant regulations that limit your protections and fall under the Rent Stabilization Ordinance (RSO), which limits how well you can keep up with market rates.
Best Property Types for Rental Investment in Los Angeles
While your property’s location is important, the property itself plays an even larger role in determining your investment’s success. Not all rental properties are created equal—and if you want to maximize your return, you need to choose the right property type.
Single-family homes always have demand. They’re great for families who can afford them, and they’re more likely to result in long-term tenancies that add value to the neighborhood as a whole. However, with limited space throughout the LA area, they’re generally more expensive to purchase and command a higher rent that may limit your renter pool.
Multi-unit properties are a bit more complicated. Before investing in an apartment building or other similar property, ask yourself: “Would I want to live there, or would I only settle there as a last resort?” If it’s the latter, you won’t attract the high-quality tenants that make owning rental property a breeze.
Remember: people want to live a normal life in a place that feels like home—not old, cramped apartments with poor noise control and tons of foot traffic. Condos in well-managed HOAs fit the bill and can be great investments, especially if the fees are reasonable. These HOAs maintain higher standards, protecting property values and rental market rates for better long-term returns. Plus, renters like them because they often have better finishes and amenities than older apartments.
How a Property Manager Makes Life Easy For You
Managing rental properties–especially in LA–isn’t for the faint of heart.
Between tenant screening, rent collection, maintenance issues, and ever-changing rental laws, being a DIY landlord here can turn into a full-time job. Plus, you have to be on call constantly, which takes away your free time and peace of mind at all hours of the day.
Working with a property management company can give you your time back, taking care of things like:
- Maximizing rental income: Proper pricing and proactive management keep your returns high.
- Finding quality tenants: Thorough screening means fewer late payments, evictions, and headaches.
- Staying compliant: LA’s rental laws are no joke, and making a mistake can be costly.
- Handling maintenance: No more late-night calls about broken water heaters or air conditioning failures.
- Reducing turnover: Happy tenants stay longer, meaning less time and money spent on vacancy periods and repairs.
- Managing finances: Stop chasing down tenants for rent each month—just check your owner portal for everything from monthly rent to tax documentation.
But, like rental properties, not all property management companies are equal. The right choice for your investment won’t just take care of the day-to-day needs of your tenancies—they’ll actively work to find ways to improve your ROI.
Is LA a Good Investment for You?
At the end of the day, Los Angeles is still a great place to invest—but only if you do it right. The market is competitive, and the rules are strict, but with smart property choices and professional management, you can build long-term wealth here.
At RentalHouse Property Management, we combine 40+ years of Los Angeles market experience with ROI-focused management strategies that more than pay for themselves. We reduce your stress, increase your earning potential, and position your property for long-term success with the latest in technology and full legal compliance at every stage.
Thinking about investing in the Los Angeles rental market? We’re here to help make your investment as profitable and stress-free as possible.
Reach out today!