Did you know that if you decide to become a rental property provider you cannot get your property back unless you meet certain conditions?
Sounds crazy, right?
It’s your property, right?
Not so fast, according to local Just Cause ordinances and state law AB 1482, whose policies deceptively apply to single family homes and condos unless landlords provide tenants with a specific written notice. For example: tenancies existing before July 1, 2020, this notice was required by August 1, 2020. For tenancies starting or renewed after July 1, 2020, the notice must be included in the rental agreement. Failure to adhere means the property is not exempt. Yes, the city’s Frequently Asked Questions (FAQs) do not clearly state this.
Your duplex is not exempt unless one unit is occupied by the owner as their primary residence for the entire period of tenancy.
Owner-Occupied Single-Family Homes in which the owner lives on the property are not exempt if the owner has rented more than two of its bedrooms, or two bedrooms and an ADU (Accessory Dwelling Unit), or Junior ADU.
The Just Cause Ordinance also Requires the Following for No-Fault Termination:
A written early alert 60-day notice that in 60-days they will get a notice to terminate tenancy (essentially a 120-day notice, again, not clearly stated by the city).
Within 15-days of notice, tenants are due two-month’s rent relocation assistance in the city. The amount is three-months rental assistance in the county.
If termination is due to a family member moving into the unit, proof of relationship is required upon request, and family member must move in within 90 days and remain as a permanent resident in the property for at least one year.
If termination is for substantial remodel, then there are specific requirements that must be met:
Detailed letter explaining what work is required and why tenancy must be terminated for longer than 30 days because the tenant cannot safely remain in the unit.
Letter from a 2nd licensed contractor certifying, under penalty of perjury, that the work the 1st contractor is performing is necessary and will take longer than 30 days.
Copies of all permits must be given to tenants when given notice.
Tenant has first right of refusal to return to the unit for a period of two years at a rent cap of 5% + CPI, not to exceed 10%, whichever is lower, no matter the cost of renovations.
Better Do As They Say
Violations of this ordinance can and have resulted in property owners/managers being criminally charged, along with fines and fees. At the very least, if proper procedures are not followed, the rental property provider may have to start from the beginning to notice tenants correctly.
Lastly, if the rental property is sold, the new owner cannot commence renovations for a period of one year and then must comply with all the above.
Is it any wonder why rental property providers are converting to short-term rentals, vacation rentals (where permitted), keeping units vacant, or selling their properties?
Most of the City Council doesn’t care. When a property sells, the city gets higher property taxes.
You Should Know That:
Wendy Santamaria, District 1’s new city council member, promised she would protect mom & pop rental housing providers. Her first action on City Council, in partnership with District 4’s rep, Kristen Sneddon, was to bring more restrictive regulations under the Just Cause ordinance that passed with a 4-2 vote on 4/22/25 with no exemptions for small housing providers. Sneddon claims to sympathize with small owners but didn’t provide carve outs either.
I’ve reached out to Santamaria three times, and she has failed to define or explain how she is exempting moms & pops.
You should know too that councilmembers Harmon, Gutierrez, Santamaria, and Sneddon all support stricter rent control and want to cap rent increases at 2% with or without CPI (Consumer Price Increase) adjustments, and they now have the majority with the votes to pass this? They also support a rent registry and rent board with no clear understanding as to the costs to the city, or if costs will be passed on to landlords? Note that they all supported a 40% rate increase in water rates over the next four years and are also proposing a 7.4% per year increase in trash rates.
You should also know that Councilmember Sneddon has floated the idea of a vacancy tax, not just on underutilized commercial properties, but also on vacant or second homes, as is done in Vancouver, BC. How long before they look at underutilized bedrooms in your home that could provide housing for people?
Did you know that Friedman, Jordan, and Sneddon, as well as Mayor Rowse are the only members of council that are not tenants? Gutierrez lives with his mother, Harmon rents with her family, and Santamaria is a renter.
These tenant protections are leading to higher rents, stricter rental criteria, and discourages housing production. And if you think you can reason with these elected officials, better think again.
Time to Toss at Least Three Council Members
So, while you may think you own your property with all the costs and responsibilities that come with it, your ownership is being dictated by policies that affect how you can manage it, and you have very little influence with most councilmembers, since 60% of voters in Santa Barbara city are tenants, and the council will prioritize tenant protections over your private property rights.
The only hope on the horizon is that Friedman, Harmon, and Sneddon will be termed out and new candidates will see the folly with current policy. If you are interested in running for office or know someone that might, please email: RescueSB@proton.me
Loy Beardsmore, a former teacher and 45-year Santa Barbara resident, has been a rental housing provider for over 30 years and is dedicated to community improvement.
*****
Please help spread the word about the value and readability of SBCurrent.com by sharing this article with friends and neighbors. Use the button below or copy the URL to share, ensuring they too stay well-informed. Thank you.
*****
History is full of examples of non-Achievers trying to control the assets of achievers.
Loy- Thank you for bringing this issue to the forefront. Every investor needs to understand that long term, your hard-earned assets are not safe in a progressive state. I sold my California rental property two years ago and invested in a Red State market.