If you own residential rental property in Santa Monica, you are operating under the most stringent rent control regime in California. The Rent Control Board, established by Charter Amendment in 1979 and codified in Article XVIII of the Santa Monica City Charter, regulates more than 28,000 controlled units across the 8.4-square-mile city. Every controlled unit has a Maximum Allowable Rent (MAR) registered with the Board. The annual General Adjustment is set by Board resolution rather than a fixed CPI formula, and just-cause eviction protections are broader than the City of Los Angeles or AB 1482 protections. Property owners who deviate from Board procedures face civil penalties, treble damages under Charter § 1809, attorney fees, and — for repeat violations — misdemeanor referral.
Borna Houman Law represents Santa Monica property owners, multi-family investors, and family trusts in Rent Control Board petitions, just-cause eviction filings, MAR adjustment hearings, and complex due diligence on Westside acquisitions.
Key Takeaway: Santa Monica rent control covers nearly all rental units in buildings issued a Certificate of Occupancy on or before April 10, 1979, with limited Costa-Hawkins exemptions. Every unit has a registered Maximum Allowable Rent (MAR). Annual rent increases are limited to the General Adjustment set by Rent Control Board resolution. Evictions require one of the just-cause grounds in Charter § 1806 plus, where applicable, relocation assistance under SMMC § 4.36.
Which Santa Monica properties fall under rent control?
Santa Monica’s rent control coverage is set by Charter § 1801 and applies to all rental units in residential buildings issued a Certificate of Occupancy on or before April 10, 1979. The April 1979 cutoff predates the Costa-Hawkins state preemption (1995), and for that reason almost every multi-family building constructed before April 1979 in Santa Monica is covered.
Costa-Hawkins (Civ. Code § 1954.50 et seq.) overlays state-mandated exemptions. Single-family homes and condominiums separately alienable from any other unit are exempt under § 1954.52(a). Unit-by-unit vacancy decontrol applies under § 1954.53 — once a vacancy occurs through a tenant’s voluntary departure (not a no-fault eviction or buyout), the landlord may set the new tenancy at market rent. The unit is then re-controlled at the new rent for purposes of subsequent annual adjustments.
| Property Type | Coverage | Key Authority |
|---|---|---|
| Pre-April 1979 multi-family | Full Santa Monica rent control | SM Charter § 1801 |
| Post-April 1979 multi-family | State AB 1482 only | Civ. Code § 1947.12, 1946.2 |
| Single-family home (separately alienable) | Costa-Hawkins exempt; AB 1482 exempt with notice | Civ. Code § 1954.52 |
| Condominium (separately alienable) | Costa-Hawkins exempt; AB 1482 exempt with notice | Civ. Code § 1954.52 |
| Owner-occupied 2-4 unit (Rule 2017) | Limited exemptions if owner occupied since acquisition | SMRC Regs. 2017 |
| Newly constructed (post-April 1979) | Charter exempt; state law applies | SM Charter § 1801(c) |
In our experience advising Westside clients, the most common acquisition surprise involves substantially remodeled buildings. Charter § 1801(c) exempts “newly constructed” units from rent control — but the Rent Control Board interprets that exemption narrowly. A complete demolition followed by ground-up construction qualifies. A gut renovation that retains foundation, structural walls, or load-bearing elements does NOT qualify. Buyers should always pull the Certificate of Occupancy history and the Board’s registration file before underwriting.
What is the Maximum Allowable Rent and how is it set?
Every controlled unit in Santa Monica has a Maximum Allowable Rent on file with the Rent Control Board. The MAR is the highest legal rent the landlord may collect at any given time. The MAR was originally set as the rent in effect on the controlled date (April 10, 1979) plus all subsequent General Adjustments and approved increases minus any decreases.
Three mechanisms adjust MAR over time. The annual General Adjustment under Charter § 1805 is set by the Board and applies uniformly to all controlled units. Individual rent adjustments under Charter § 1804 are granted on petition by the landlord (typically for capital improvements, increased operating expenses, or fair rate of return). Vacancy decontrol under Civ. Code § 1954.53 resets the MAR at market when a unit re-rents through ordinary vacancy.
The General Adjustment
The General Adjustment is set by Board resolution each year and is typically lower than the LARSO 3 percent floor. Recent annual adjustments have ranged from 0 percent to 6 percent depending on inflation and Board policy. The Board publishes the adjustment percentage by April for the next 12-month period beginning September 1. Always verify the current adjustment with the Board’s official website before serving a rent increase notice — an over-adjustment is a Charter violation and unwinds the entire increase.
The General Adjustment is taken with 30 days written notice under Civ. Code § 827 and may be applied once per 12-month period. “Banking” of unused adjustments is permitted under SMRC Regulation 3304 — unused adjustments from prior years can be carried forward and applied in a single later year, with documentation.
What are the just-cause grounds for eviction in Santa Monica?
Charter § 1806 enumerates twelve grounds for eviction. The list closely tracks LARSO and AB 1482 but with stricter Santa Monica-specific requirements for owner-occupancy and removal-from-market evictions.
| # | Ground | Notice | Type |
|---|---|---|---|
| 1 | Failure to pay rent | 3-day pay or quit (CCP § 1161(2)) | For fault |
| 2 | Material breach of lease | 3-day cure or quit (CCP § 1161(3)) | For fault |
| 3 | Nuisance | 3-day unconditional quit (CCP § 1161(4)) | For fault |
| 4 | Illegal use of premises | 3-day unconditional quit | For fault |
| 5 | Refusal to renew similar lease | 30-day notice | For fault |
| 6 | Refusal of access for repairs/inspection | 3-day cure or quit | For fault |
| 7 | Subletting in violation of lease | 3-day cure or quit | For fault |
| 8 | Owner or relative occupancy (OMI) | 60-day; relocation assistance; Board filing | No fault |
| 9 | Substantial rehabilitation | 120-day; Board approval; relocation | No fault |
| 10 | Demolition | 120-day; Board approval; relocation | No fault |
| 11 | Removal from rental market (Ellis Act) | 120-day Ellis notice; relocation | No fault |
| 12 | Government order to vacate | 30-day; relocation if required | No fault |
The Santa Monica owner-occupancy ground (§ 1806(a)(8)) is more restrictive than LARSO or AB 1482. The owner or qualifying relative must use the unit as their principal residence for a minimum of three consecutive years (compared to 12 months under California’s SB 567 amendments to AB 1482). The owner must file a sworn declaration with the Rent Control Board documenting intent. Failure to occupy for the required period exposes the owner to civil penalties, restoration of the prior tenant’s possession, and damages.
Relocation assistance for no-fault evictions
SMMC § 4.36 sets relocation assistance amounts for no-fault evictions — typically higher than LARSO and AB 1482 amounts. The 2026 schedule includes a base amount per displacement plus additional amounts for protected tenants (over 62, disabled, or with minor children). Total relocation can exceed $25,000 per displaced household for protected tenants, with additional sums for households with multiple protected occupants. Verify the current schedule with the Board before serving any no-fault notice. Failure to pay the full relocation amount before tenant departure is a Charter violation that voids the eviction.
How does the Ellis Act work in Santa Monica?
The Ellis Act (Gov. Code § 7060 et seq.) is the state-law right of every landlord to permanently exit the residential rental business. Charter § 1806(a)(11) and SMMC § 4.36.080 implement the Ellis Act in Santa Monica with strict procedural requirements. The Board cannot prevent an Ellis Act withdrawal, but it can impose post-withdrawal restrictions on the property.
The Ellis Act process in Santa Monica involves these steps. First, the landlord files a Notice of Intent to Withdraw with the Board and serves all tenants. Second, tenants receive 120 days notice (240 days for protected tenants). Third, relocation assistance is paid in full before each tenant’s departure date. Fourth, the property is withdrawn from the rental market on the effective date and remains restricted under § 7060.2 — if re-rented within 2 years, the displaced tenants have a right of return at the prior rent; if re-rented within 5 years, the prior MAR controls; the prior tenants retain a right of first refusal for 10 years.
What does annual registration require?
Every owner of a Santa Monica controlled unit must register annually with the Rent Control Board under SMRC Regulations. The registration includes the unit identification, current MAR, current monthly rent, security deposit on file, tenancy start date, and amenity changes. The annual registration fee is set by Board resolution — verify the current amount before payment.
Registration delinquency carries serious consequences. Charter § 1803(b) provides that no rent increase is collectible during a period of non-registration. Rent collected during a non-registration period must be refunded. The most common compliance failure we see in Santa Monica due diligence is the discovery of a multi-year registration gap that produces a substantial pre-acquisition liability — sometimes six figures on a 20-unit building.
What individual rent adjustments can a landlord petition for?
Charter § 1804 authorizes individual rent adjustments above the General Adjustment in three categories. Capital improvement pass-through (SMRC Reg. 4100) covers improvements that primarily benefit tenants and exceed $1,000, amortized over their useful life. Increased operating expense adjustment (SMRC Reg. 4200) covers documented increases in property taxes, insurance, utilities, and similar non-discretionary costs. Fair rate of return petition (SMRC Reg. 4300) is the constitutional safety valve — a landlord whose net operating income is below the constitutional minimum may petition for a rent increase to achieve a fair rate of return on investment.
Each petition requires Board hearing, documentary support, and tenant notice. The Board’s hearing officers issue written decisions reviewable by writ to LA Superior Court. The most strategic individual adjustments combine multiple categories — a property that completed a seismic retrofit, increased property taxes following a sale, and is now operating below fair rate of return can support a multi-year cumulative adjustment.
Frequently Asked Questions
Can I take a rent increase larger than the General Adjustment?
Only by petition. The General Adjustment is the only annual increase permissible without Board approval. Capital improvement pass-throughs, increased operating expense adjustments, and fair-rate-of-return petitions all require Board hearings and written decisions. Charging a higher rent without approval is a Charter violation that subjects the landlord to refund obligations, civil penalties, and treble damages.
What happens if I bought a Santa Monica building with unregistered units?
The acquisition liability transfers to the new owner. The MAR registration runs with the unit, not the owner. Buyers should always require sellers to bring registration current before closing, escrow holdback for any registration gap, and obtain estoppel certificates from each tenant verifying current rent. Discovery of unregistered units post-closing produces immediate refund obligations and potential treble damages.
Can I evict a tenant for Airbnb subletting?
Yes, with the right notice. Santa Monica’s Home-Sharing Ordinance (SMMC § 6.20) prohibits short-term rentals of less than 30 days unless the host is a primary resident. A tenant subletting a controlled unit on Airbnb without owner consent typically violates both the lease and the city ordinance. The unauthorized subletting is grounds 7 just-cause eviction under Charter § 1806(a)(7), preceded by a 3-day cure or quit notice under CCP § 1161(3).
Does Santa Monica rent control apply if I rent my home for under a year?
If the building was constructed on or before April 10, 1979 and is multi-family or non-Costa-Hawkins-exempt, yes. Lease length does not affect coverage. Single-family homes separately alienable from other dwellings are Costa-Hawkins exempt regardless of construction date or lease length, but the AB 1482 exemption notice must be served in 12-point font under Civ. Code § 1947.12(d)(5).
How does the right of return work after an Ellis Act withdrawal?
Under Gov. Code § 7060.2, displaced tenants have specific re-rental rights for the 10 years following an Ellis Act withdrawal. If the landlord re-rents within 2 years, the displaced tenant has a right of first refusal at the prior controlled rent. If re-rented within 5 years, the prior MAR controls. If re-rented within 10 years, the displaced tenant retains a right of first refusal at market rent. These obligations attach to the property and pass to subsequent owners.
Can I increase rent after a Costa-Hawkins vacancy decontrol?
Yes, when the vacancy is voluntary and not the result of a no-fault eviction or coerced buyout. Civ. Code § 1954.53 permits market rent on the new tenancy. The new rent is then registered with the Board and becomes the MAR for that tenancy. Annual General Adjustments apply going forward. A tenant who vacated due to a no-fault eviction or buyout (where relocation was paid) does NOT trigger Costa-Hawkins decontrol — the prior MAR continues for the next tenant.
Talk to a Santa Monica Real Estate Attorney
Borna Houman Law represents Santa Monica property owners across the full range of Rent Control Board matters — registration disputes, MAR adjustment petitions, just-cause eviction filings, Ellis Act withdrawals, capital improvement pass-throughs, and acquisition due diligence. Our practice covers the entire Westside, from Pacific Palisades and Santa Monica through Brentwood, Westwood, Beverly Hills, and West Los Angeles.
Santa Monica’s compliance regime rewards careful, registered, documented practice and punishes ad-hoc decision-making. Call (888) 42-BORNA to schedule a confidential consultation.
This article is for general information only and is not legal advice. Verify all amounts and procedures with the Santa Monica Rent Control Board before relying on them. For related coverage, see our Ellis Act eviction compliance guide, step-by-step eviction guide, and cash-for-keys buyout strategy. The Rent Control Board’s official website is santamonica.gov/rent-control.
