Los Angeles REAP Program: How Landlords Can Avoid Rent Escrow

Los Angeles landlords, there’s one program you want to avoid at all costs: the Rent Escrow Account Program, better known as REAP. If your property is placed into REAP, tenants may legally pay reduced rent or send their rent directly to the city instead of to you.

Hi, I’m Bijan Shakibkoo, co-founder and managing partner at SNS Law Group. In the video below, I’ll explain what triggers REAP, how it impacts your rental income, and why it can be so costly for property owners. From serious code violations to delayed repairs, understanding how REAP works is critical to protecting your investment and keeping control of your property.

Transcript:

Landlords in Los Angeles, let’s talk about a program you never want to end up in. It’s called REAP, the Rent Escrow Account Program. If your property goes into REAP, tenants can legally pay reduced rent, sometimes cut in half, and send that rent to the city instead of you. Let’s break this down.

Hi, my name is Bijan Shakibkoo. I’m a co-founder and managing partner here at SNS Law Group. And if you enjoy this video, please feel free to like and subscribe.

What is the REAP Program in Los Angeles?

REAP is a penalty program run by the Los Angeles Housing Department. It’s triggered when your property has serious code violations—things like lack of heat, mold, broken plumbing, or unsafe wiring—and the city decides that you failed to fix them on time.

Once the property is enrolled, tenants can either pay rent into an escrow account with the city or get big reductions in the rent.

What Happens If Your Property Is Placed in the REAP Program

What does this mean for you as a landlord? You lose control of rent payments. You can’t raise rents while in REAP. You face added fees and penalties. And getting out takes time and money. You must bring the property into full compliance and pass re-inspection.

Here’s the kicker: while you’re in REAP, you still have to operate and maintain the property, but your rental income is reduced. That means you’re paying more out of pocket until you’re in compliance.

How to Avoid REAP

So here’s what you should do to avoid REAP. Stay on top of maintenance. Don’t let small issues turn into code violations. Fix violations quickly if you get a notice from the city, and document everything. Keep records of repairs and communication. If you get a REAP notice, respond immediately. The longer you wait, the harder and more expensive it is to get out.

Contact SNS Law Group If You Need Guidance to Avoid REAP

Ending up in REAP is one of the most damaging things that can happen to your rental business in Los Angeles. If you’ve received a REAP notice or need help staying compliant, call our office today. We’ll guide you through the process, protect your rental income, and work to keep your property out of the program.