Santa Monica Rent Control Guide for Landlords and Sellers

Last updated November 13, 2026. Reviewed by the Cash Home Buyers CA team. Figures come from the City of Santa Monica Rent Control Agency and the California Attorney General; sources are listed at the end.

Santa Monica rent control is run by the Rent Control Board under the City Charter. The 2026 General Adjustment is 2.6%, effective September 1, 2026, with a $70 ceiling for units with a Maximum Allowable Rent of $2,674 or more. Evictions need just cause, and tenants and their rent limits stay with the unit if you sell.

Santa Monica rent control at a glance

How does Santa Monica rent control work?

Santa Monica voters adopted rent control in April 1979 in response to a housing shortage, low vacancy and rapidly rising rents. The Rent Control Board and Agency control the rent that may be charged for a controlled unit, set the services included in the rent, limit evictions, limit removal of units from the rental market and aim to ensure owners a fair return.

The central number is the Maximum Allowable Rent, or MAR. For tenancies that began before January 1, 1999, the MAR is generally based on the rent in effect on April 10, 1978 plus the increases and decreases the law allows.

Since January 1, 1999, owners can set the starting rent for most new tenancies, and the MAR is based on that starting rent plus allowed adjustments.

Every new tenancy has to be registered with the Rent Control Agency, and the city’s Look Up a Rent tool shows the MAR and the most recently registered tenancy date for any controlled property.

The Maximum Lawful Rent is the MAR plus half of the annual registration fee and any allowable property-tax surcharges. For 2026/2027 the registration fee is $240 per unit, and owners may pass half of it, $10 a month, to tenants with proper notice.

What is the 2026 General Adjustment in Santa Monica?

The Board set the 2026 General Adjustment at 2.6%, effective September 1, 2026, with a maximum increase of $70 for units whose current MAR is $2,674 or higher. Landlords must give tenants at least 30 days’ written notice, using the Board’s Notice of Change in Terms of Tenancy.

A landlord can apply the General Adjustment only when the tenancy started before September 1 of the prior year, all registration fees and penalties are paid, the tenancy is properly registered, there are no uncorrected health, safety or housing citations, the owner complies with the Rent Control Law and the notice is proper.

Which Santa Monica homes are exempt?

Some owners can apply for an exemption, but none is automatic, and each has to be granted by the Board.

• Owner-occupied, three units or fewer: a temporary exemption for an owner who holds title as a natural person, has at least a 50% interest and has lived there as a principal residence for at least 120 days before applying. It lapses when the owner stops living there or when the property is sold or transferred.
• Single-family homes and separately sold condos: a permanent exemption is possible when the owner has lived in the home as a principal residence for two continuous years and owns no contiguous lot with residential units. A separate declaration exists for homes that were vacant or not rented on July 1, 1984.
• New construction: most properties built after April 10, 1979 can qualify for a permanent exemption, with exceptions for conversions, move-ons and some replacement units.

The city’s seminar for owners states that new owners must apply for a new exemption. If you bought or are selling a Santa Monica home that was exempt, confirm with the Rent Control Agency whether the exemption carries over.

When can a Santa Monica landlord evict a tenant?

A landlord may not end a tenancy in a controlled unit unless one of the reasons listed in Section 1806 of the Charter exists and the landlord follows state and local law. The city describes seven fault-based reasons and three no-fault reasons, and tenants in most multi-family properties, not just controlled units, have just cause protection under Charter sections 1806 and 2304.

• At fault: non-payment, a material breach of the lease, a substantial nuisance or damage, refusing reasonable access (including to show the property for sale), conviction for illegal use, refusing a renewal on the same terms, and a subtenant not approved by the landlord.
• Warning letter: for several of these, the owner must first give a written warning with reasonable time to fix the problem.
• No fault: an owner or listed relative moving in, using the Ellis Act to leave the rental market, or a Board removal permit. No-fault evictions carry permanent relocation payments.
• Filing: eviction notices, except for non-payment, must reach the Rent Control Agency within three days of service, and all notices must reach the City Attorney’s Office within two days.

Selling is not a listed reason. When a new owner takes over, existing rental agreements stay in effect, oral leases are valid, and tenants in most multi-family units cannot be forced to sign a renewal with different terms. See selling a house with tenants in Santa Monica for more.

How to sell a rent-controlled house in Santa Monica

You can sell a controlled Santa Monica property with tenants in place. The tenancy and the MAR stay with the unit.

1. Confirm status. Look up each unit’s MAR and registered tenancy date, and check whether any exemption applies and whether it survives a sale.
2. Get compliant. Pay registration fees, correct open housing citations and register every tenancy. A buyer will check, and unpaid items can block a General Adjustment.
3. Prepare the buyer package. Leases, rent roll, notices of change, registration confirmations and any tenant buyout agreements.
4. Mind buyouts. Tenant buyouts in controlled units need a written notice of rights before the offer, a 30-day right to rescind, and filing with the Board within 31 to 60 days.
5. Plan the handoff. A new owner must file a Change of Ownership Registration within 30 days of closing escrow and must give tenants contact information within 15 days of the change in ownership under Civil Code section 1962.

See how we buy houses in Santa Monica, read how our Santa Monica cash-offer process works, or compare selling a rental property in Santa Monica.

Selling a Santa Monica rental? Call (424) 435-2326 or request a cash offer. There is no cost and no obligation.

Santa Monica rent control FAQ

What is the Santa Monica rent increase for 2026?

The Rent Control Board set the 2026 General Adjustment at 2.6%, effective September 1, 2026, with a $70 maximum increase for units with a Maximum Allowable Rent of $2,674 or more. Landlords must give at least 30 days’ written notice.

How do I find the legal rent for a Santa Monica unit?

Use the city’s Look Up a Rent tool, which shows the Maximum Allowable Rent and the most recently registered tenancy date for a controlled property.

Can a landlord evict a Santa Monica tenant to sell the property?

Selling is not one of the reasons listed in the Charter. Existing rental agreements stay in effect when a new owner takes over, and a landlord may evict a tenant for refusing reasonable access to show the property for sale only after a warning letter.

What must a new owner of a Santa Monica rental file?

If the property is rent-controlled, the new owner must file a Change of Ownership Registration form with the Rent Control Board within 30 days of closing escrow.

Does a Santa Monica rent control exemption transfer to a buyer?

Not automatically. The city says an owner-occupied exemption lapses when the property is sold or transferred, and its owner seminar says new owners must apply for a new exemption.

Sources

• City of Santa Monica: Rent Control
• City of Santa Monica: Maximum Lawful Rent
• City of Santa Monica: Exemptions from Rent Control
• City of Santa Monica: Evictions
• City of Santa Monica: Information for Owners of Santa Monica Residential Rentals

This guide is general information, not legal advice. Rates, rules and dates change; confirm with the Santa Monica Rent Control Agency or an attorney before acting.