Santa Monica landlord law for property owners

First confirm jurisdiction and rent-control status

Santa Monica’s Rent Control Board states that most residential rental buildings constructed before April 10, 1979—and some units constructed later—are subject to the Rent Control Law.

Potentially controlled housing can include:

• Apartment buildings.
• Single-family homes with particular rental histories.
• Condominiums with particular rental histories.
• Replacement units.
• Converted or previously unregistered units.

Exemptions and specialized rules can involve:

• New construction.
• Qualifying owner occupancy in a duplex or triplex.
• Government or subsidized housing.
• Institutional housing.
• Hotels and transient use.
• Single-family homes and separately sold condominiums under state vacancy-control law.
• Units removed, replaced, or returned to rental use.

Confirm the parcel, unit, occupancy approvals, construction history, title, and prior Board records. A real-estate listing’s “rent controlled” field is not a legal determination.

Rent control and just cause are not the same question

A unit may be exempt from local rent limits while still protected by:

• Santa Monica’s Housing Policies Charter Amendment.
• California’s Tenant Protection Act.
• State notice and relocation requirements.
• Local tenant-harassment and anti-discrimination law.

Do not interpret a rent-control exemption as unrestricted termination authority.

Santa Monica’s maximum lawful rent can include more than the MAR

For a controlled unit, Santa Monica describes the maximum lawful rent as potentially including:

1. The Maximum Allowable Rent, or MAR.
2. A permitted portion of the annual registration fee.
3. Certain eligible property-tax-related surcharges.

Each component has its own requirements.

Maximum Allowable Rent

For many tenancies that began on or after January 1, 1999, the starting lawful rent is the basis for the unit’s Maximum Allowable Rent (MAR), adjusted only by later authorized increases or decreases.

Review:

• The initial tenancy registration.
• Tenancy start date.
• The Board’s current MAR record.
• Prior general adjustments.
• Board petitions and decisions.
• Reduced or removed housing services.
• Excess-rent claims.

The City’s online “Look Up a Rent” tool is useful, but the City cautions that the record may not reflect a recent tenancy or decision. Compare it with the owner’s documents.

The 2026 General Adjustment

As of July 26, 2026, the Rent Control Board has announced:

• A 2.6 percent General Adjustment effective September 1, 2026.
• A $70 ceiling for units with a current MAR of $2,674 or more.
• A requirement for at least 30 days’ written notice.

The unit is eligible only if current conditions are satisfied, including:

• The tenancy began before September 1, 2025.
• The tenancy is properly registered.
• Registration fees and penalties are paid by the applicable deadline.
• The property has no uncorrected health, safety, or housing-code citations.
• The owner is otherwise compliant.
• Proper notice is given.

This is a period-specific rule. Verify the Board’s unit-specific mailing, current form, MAR, effective date, ceiling, and eligibility on the action date.

Registration is a continuing owner obligation

Owners should update the Rent Control Agency when:

• Title or ownership changes.
• The owner’s mailing address changes.
• Management or authorized-agent information changes.
• A new tenancy begins.
• Unit or exemption facts change.

Failure to register accurately can affect annual increases, petitions, fee status, and defenses to a tenant claim.

2026–2027 registration fee

The City currently states:

• The annual registration fee is $240 per controlled unit for fiscal year 2026–2027.
• Up to one-half may be passed through in equal monthly installments with proper notice.
• The current pass-through is therefore up to $10 per month for an eligible unit.
• Annual bills are generally sent in June.
• The Board’s 2026 announcement requires fees and penalties to be paid by August 3, 2026 for General Adjustment eligibility.

Fee waivers can apply in defined situations, including certain owner-occupied units, qualifying single-family homes or separately sold condominiums, and some subsidy tenancies. Apply through the current process; do not assume eligibility.

Housing services are part of the regulated bargain

For a controlled tenancy, parking, storage, utilities, laundry, appliances, furnishings, maintenance, and other amenities can affect the lawful rent.

Before changing a service:

• Review the original and current tenancy records.
• Check registration and Board decisions.
• Determine whether the change reduces housing services.
• Evaluate rent-reduction or petition procedures.
• Give any required notice.
• Preserve an equivalent-service agreement if appropriate.

Calling a charge “separate” does not necessarily remove it from rent-control analysis.

Just-cause termination requires a recognized ground

Santa Monica’s local systems limit termination grounds for many rental units.

At-fault matters may involve:

• Nonpayment.
• A lease violation.
• Nuisance or property damage.
• Denial of lawful access.
• An unapproved occupant in qualifying circumstances.

No-fault matters may involve:

• Owner occupancy.
• Withdrawal from the rental market.
• Demolition or authorized removal.
• Compliance with a government order.

The exact Charter, ordinance, regulation, state statute, notice, and filing process must be checked. Many local at-fault matters require a written warning or notice to cease before a termination notice.

Review evidence, registration, rent compliance, habitability, retaliation, fair housing, protected households, relocation, and the proposed use before service.

Relocation can be temporary or permanent

Santa Monica’s tenant-relocation ordinance can apply when:

• A unit becomes temporarily uninhabitable.
• A tenant is permanently displaced for a qualifying no-fault reason.
• A non-controlled unit is recovered under local owner-occupancy or withdrawal rules.
• A qualifying rent increase or extended temporary displacement triggers rights.

The owner should determine:

• Which local and state rules apply.
• Whether hotel, meals, laundry, parking, moving, storage, or other temporary benefits are required.
• The current permanent-relocation amount.
• Tenant household and protected status.
• Payment, notice, and documentation.
• Rights to return.

Use the current City schedules. Amounts can change.

Owner occupancy, Ellis Act, and removal require early planning

Before committing to a move-in, demolition, conversion, or development timeline, review:

• Controlled status.
• Qualifying owner and proposed occupant.
• Unit-selection rules.
• Tenant protections.
• Required Board or City permits.
• Relocation.
• Notice and filing sequence.
• Good-faith intent.
• Post-recovery occupancy.
• Future rental restrictions.
• Housing-replacement requirements.

A land-use approval does not itself terminate a tenancy, and a tenancy notice does not guarantee a project can proceed.

Santa Monica tenant buyouts

Santa Monica Municipal Code Chapter 4.57 regulates buyout offers and agreements.

Current City materials require:

• The approved written rights notice before an offer.
• A written agreement.
• Required statements near the tenant signature in at least 14-point type.
• A 30-day tenant cancellation right.
• A buyout amount at least equal to the applicable minimum.
• A copy for the tenant when signed.
• Filing with the City Clerk no sooner than day 31 and no later than day 60 after all parties sign.

The required notice also explains that repeated offers within six months after a tenant’s written refusal to negotiate may constitute bad-faith harassment.

Review the current notice, minimum amount, filing method, language needs, occupants, releases, possession, deposit, rent, payment timing, and rescission before making an offer.

Tenant harassment and fair housing apply beyond controlled units

Santa Monica’s Tenant Harassment law applies regardless of rent-control status.

Risk can arise from:

• Withholding services or repairs to induce a move.
• Abuse of entry.
• Threats or false statements.
• Repeated buyout pressure.
• Retaliation.
• Discriminatory screening, terms, or enforcement.
• Interference with voucher use or a reasonable accommodation.

Use neutral written criteria, maintain the property, document legitimate reasons, and separate business objectives from protected tenant conduct.

Residential leasing and short-term use

Santa Monica regulates residential leasing beyond rent control.

The City’s Residential Leasing Requirements Ordinance generally addresses:

• Initial lease terms.
• Furnished versus unfurnished rental.
• Primary-residence use.
• Owner offers of multiple payment options.
• Required information or registration.

Separate home-sharing rules generally prohibit renting an entire unit for 30 days or less, subject to current exceptions. Do not use nominal one-year paperwork to disguise a prohibited transient operation.

Acquisition diligence

A buyer should obtain:

• Property and unit Rent Control records.
• Current MAR for each unit.
• Original and current tenancy registrations.
• Leases and tenant rosters.
• Rent, fee, surcharge, and deposit history.
• Housing-services and amenity records.
• Board petitions and decisions.
• Code citations.
• Eviction, relocation, buyout, and removal records.
• Exemption or fee-waiver support.
• Residential rental business license and local compliance records.

A seller should correct or disclose gaps rather than relying on broad contract disclaimers.

Review tenant-occupied property transactions

Common Santa Monica owner mistakes

Using the percentage without the MAR

The General Adjustment applies to the eligible MAR and can be subject to a ceiling. Verify the Board’s unit record.

Increasing rent while registration or citations are unresolved

Registration, fees, citations, tenancy dates, and compliance affect eligibility.

Assuming vacancy decontrol removes the unit from rent control

State law may allow a new initial rent, but the unit can remain subject to registration, later annual adjustments, services, just cause, and other local rules.

Treating a single-family home or condominium as automatically exempt

Rental and ownership history, tenancy dates, state law, fee-waiver rules, and just-cause law matter.

Negotiating a buyout informally

Santa Monica requires a pre-offer notice, minimum amount, mandatory agreement terms, rescission period, and filing.

How Law Laguna can help you move forward

Depending on scope, Law Laguna can:

• Assess City, Rent Control, and California coverage.
• Audit MAR, registration, fees, services, and rent history.
• Review a proposed General Adjustment or other rent change.
• Review lease, disclosure, and residential leasing compliance.
• Assess at-fault or no-fault termination strategy.
• Review relocation and buyout requirements.
• Advise on property acquisition or sale.
• Prepare or review pre-litigation documents and communications.
• Organize a filed dispute for appropriate litigation counsel.

Law Laguna focuses on counseling, compliance, documentation, negotiation, and pre-litigation strategy. Court representation is not promised and requires a separate written scope.

Related guidance

• Los Angeles County landlord law for property owners
• California rent control and just-cause compliance for property owners
• California Rent Increases and Notice Periods

Review the property before taking action

Bring the address, title, unit and construction history, Rent Control records, MAR, registrations, leases, tenant and rent history, fees, services, notices, code records, proposed action, and timeline.

Request a Santa Monica Property Review