Samimi CRE Advisors

    Rent Control Charter Amendment

    Santa Monica rent control: what apartment owners need to know

    Santa Monica rent control explained for apartment owners: which units are controlled, the annual general adjustment, registration, Costa-Hawkins vacancy decontrol, and what it means for value when you sell.

    Quick answer

    Santa Monica has had a voter-enacted Rent Control Charter Amendment since 1979 and is one of the most tightly regulated apartment markets in California. Most multifamily units built before April 10, 1979 are controlled, with an annual general adjustment set by the Rent Control Board and registration requirements for owners. Verify for the specific property.

    What is covered

    • Most multifamily rental units in Santa Monica with a certificate of occupancy before April 10, 1979
    • Controlled units must be registered with the Santa Monica Rent Control Board, with annual registration fees
    • Maximum allowable rents for controlled units are tracked on a per-unit basis by the Board

    Common exemptions

    • Units first occupied after the charter amendment cutoff, subject to the Board's determination
    • Single-family homes and condominiums, subject to Costa-Hawkins treatment
    • Certain owner-occupied and government-regulated units

    How rent increases work in Santa Monica

    The Rent Control Board sets an annual general adjustment for controlled units, and owners may petition for additional increases in defined circumstances. Under Costa-Hawkins, an owner may generally reset rent to market upon a qualifying vacancy, after which the unit re-enters control at the new base.

    Ending a tenancy

    Santa Monica requires a legally recognized cause to terminate a controlled tenancy, and the city's relocation assistance and Ellis Act withdrawal procedures are specific and strictly enforced.

    What it means when you buy or sell

    Santa Monica trades at some of the lowest cap rates in LA County despite the strictest regulation, because long-hold family-office and 1031 capital values the location and the durable rent floor. The value question is not whether the building is controlled — nearly everything is — but the accuracy of the registered maximum allowable rents, the tenancy vintage, and the realistic vacancy pace. Buyers who close on Santa Monica product underwrite from Board records, not from a broker's pro forma.

    Santa Monica multifamily sales data

    Aggregate figures from Samimi CRE Advisors' own closed Santa Monica apartment sales — not a third-party estimate.

    Aggregate Santa Monica multifamily sale statistics from Samimi CRE Advisors closed transactions, 2021–2026
    Closed transactions (2021–2026)17
    Total closed volume$50M
    Median closed sale price$2,000,000
    Median price per unitn = 15 transactions$400,000

    Updated 2026-09-10. Medians reflect one brokerage team's closings and are not a full-market index. Price-per-unit is calculated only on transactions with a recorded unit count of two or more. Full LA County dataset and methodology.

    Verify for the specific property

    This page is a general reference, not legal advice. Rent regulation rules, allowable increase percentages, and exemptions change — and coverage depends on the individual property's construction date, permit history, and tenancy. Always verify for the specific property with the governing agency or qualified counsel before underwriting or noticing an increase.

    Official source: Santa Monica Rent Control Board

    Santa Monica rent control FAQ

    Can I raise rent to market when a Santa Monica tenant moves out?

    Costa-Hawkins generally permits a market reset on a qualifying vacancy for controlled units, after which the unit is re-registered at the new base and future increases are again limited to the Board's annual general adjustment. The mechanics and the qualifying-vacancy definition matter; verify for the specific unit with the Rent Control Board.

    Do I have to register my Santa Monica building?

    Controlled units must be registered with the Santa Monica Rent Control Board, and annual registration fees apply. Registration records are also what a buyer's diligence team will use to confirm maximum allowable rents, so accurate registration history directly affects a sale.

    Why do Santa Monica buildings still sell at low cap rates?

    Scarcity and buyer type. The buyer pool is dominated by long-hold family offices and 1031 capital that will not leave the Westside, and supply of trade-able product is structurally constrained. Regulation compresses near-term income growth but does not deter that capital.

    Not sure how the rules price your building?

    Cameron underwrites regulated Santa Monica product every week and will tell you what a real buyer pays for it — including the realistic turnover timeline, not a same-day mark-to-market fantasy.

    Get a free valuation

    Cameron Samimi · +1-310-259-7556

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