Am I able to charge market rents on a RSO duplex in LA delivered vacant upon closing?

[Timothy C.]

Hello everyone! I am working on getting a duplex deal finalized in LA that is zoned with RSO. The bad news...well RSO in Los Angeles is just a nuisance. The good news...both units will be delivered vacant at closing.

With all the reading that I've done, I'm a bit confused with what I can charge for rent after I purchase the property. This is the situation. The current owner purchased the property back in 2019 with both units tenanted. The owner then evicted one of the tenants for owner occupancy. The eviction was successful, and the owner moved into one of the units. Fast forward to 2021, the tenants in the second unit leave voluntarily after purchasing their own home. The owner now moves into this newly vacant unit and rents their current unit to a family friend for under market prices.

Fast forward again to 2023, here I am entering escrow for this property but am desperately racing against time to find out what I can do as far as rents go. The seller will deliver both units vacant upon closing. I plan to move into one of the units, and rent out the other. According to the rent registry that was submitted to the LA Housing Department, the family friend was paying under market rents. But according to RSO rules, "rent can be increased to the market rate if the tenant voluntarily moves out." With the property being delivered vacant, does this family friend need to sign/fill/acknowledge that she is leaving voluntarily so that I can begin charging fair market value for their unit? The only forms I see are for a tenant buyout where a sum of cash is exchanged for a move out. But in this case, the tenant is leaving voluntarily.

I have been trying to call LAHD with no avail. Over 2 hour wait times, only to leave a voicemail. Left messages and emailed since last week, and still no response.

Thank you.