Landlords who own property in the City of Los Angeles and wish to pay a tenant to voluntarily move out of a Rent Stabilization Ordinance (RSO) unit, are required to complete a Disclosure Notice and a written Buyout Agreement and file both with LAHD.

The Los Angeles City Council approved (Ordinance # 184673) an amendment to the RSO to require notice to tenants prior to executing a “cash for keys” agreement. The Tenant Buyout Notification Program (LA Municipal Code – LAMC 151.31) provides for regulation, monitoring and enforcement of voluntary vacancies of RSO rental units occurring pursuant to a Buyout Agreement.

The Los Angeles Municipal Code Section 151.31 requires a Disclosure Notice be given to tenants prior to executing a Buyout Agreement (“cash for keys”). Both the Disclosure Notice and the Buyout Agreement must be filed with the City within 60 days after the agreement is signed by both parties.

This process is intended to promote fairness during buyout negotiations and agreements, landlords must inform tenants of their RSO rights before executing a Buyout Agreement.

Disclosure notices must be filed with the City and must provide the following:

• Tenants may rescind agreements within 30 days or at any time if requirements are not met,
• Tenants are not required to accept a buy-out agreement,
• Buyout Agreements must contain language in conformance with LAMC 151.31,
• And contact information for LAHD.

To streamline the process, landlords can submit a copy of both the completed Disclosure Notice and the signed Buyout Agreement through the Angeleno Account online with the Los Angeles Housing Department within the specified time. Instructions are provided to further assist in this process.

Visit our Tenant Buyout Notification Program page on the LAHD website for more details or to view /download the Disclosure Notice. Landlords are responsible for preparing their own Buyout Agreement. If you need assistance, please call (213) 808-8620.