On November 18, 2025, the Santa Monica City Council unanimously approved a new ordinance requiring all rental units in the city — from duplexes and single-family homes to condominiums, accessory dwelling units (ADUs/JADUs), and non-stabilized multi-family properties — to register with the city.
The ordinance takes effect January 1, 2026.
Failure to register will trigger civil penalties of $200 per unit per month.
Beginning January 1, 2027, landlords who haven’t registered will lose the legal right to collect rent from tenants.
What Registration Entails
Landlords will need to submit detailed information about each unit, including the reason a tenant vacated (when applicable), occupancy history, and unit characteristics (type, address, related property info).
The ordinance does not set a specific registration fee yet — that will be determined later.
Why Santa Monica Is Implementing This
The city says the new registry is intended to help enforce current state and local housing laws, including:
The Tenant Protection Act of 2019, which limits annual rent increases on multi-family properties over 15 years old.
State law restrictions on excessive rent hikes during declared emergencies (“anti-gouging” provisions).
Local ordinances covering tenant protections: unlawful detainer notifications to the city, anti-harassment rules, “just cause” eviction requirements, relocation assistance in no-fault evictions, and regulations around tenant buyout agreements.
Implications for Investors & Property Owners
Compliance is now mandatory across virtually all rental housing types — as of 2026, every unit must be registered.
Non-registration carries steep financial and legal risk — $200/month/unit fines, and potentially losing the right to collect rent.
More administrative overhead — landlords must track and report detailed unit-by-unit data. Even information like “reason for vacancy” (which may rely on tenant cooperation) must be submitted.
Greater regulatory transparency — once the registry is populated, the city will have data to enforce rent caps, anti-gouging, eviction protections, etc. This could lead to heightened scrutiny and more frequent compliance audits.
Potential impact on yield and operating cash flow — if a unit becomes noncompliant (or registration is delayed), the inability to collect rent could jeopardize debt coverage, investor returns, or refinancing plans.
Bottom Line: For Real-Estate Investors, the Time to Act Is Now
If you own or manage rental properties in Santa Monica, this ordinance significantly changes the compliance landscape. You should inventory all units now, prepare to submit registration data, and account for the risk of fines or rent loss if you or your property manager fails to comply.
Given the seriousness of the penalties and the broad scope of properties affected, this could affect underwriting assumptions, cash flow forecasts, and overall investment viability in Santa Monica rentals — especially for multi-family or mixed-use investors with multiple properties.
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