Investor Landlords Take Note: Rent Caps, Remodel Restrictions, and a 1-Year Freeze on Evictions Are Here
After being struck down just months ago, a controversial housing ordinance has been revived — and this time, it passed. In a 4–2 vote, the Santa Barbara City Council approved sweeping new rules that may mark the city’s first true step into local rent control.
The ordinance caps post-remodel rents, imposes strict renovation requirements, and enacts a one-year “renoviction” freeze for new multi-unit property owners. Originally introduced by Councilmembers Santamaria and Sneddon and defeated in January 2024, the proposal has now crossed the finish line — with significant implications for local rental housing, especially investor-owned properties.
Importantly, this ordinance adds yet another local layer on top of California’s existing just-cause protections under AB 1482. Santa Barbara now joins a growing list of cities that are customizing their own tenant protections — going further than state law.
This is just the first — but major — step. The City Council will reconvene to finalize how these rules will be implemented. The details may still change, and I’ll continue providing updates, but this post reflects the current draft of the ordinance.
🔍 What’s Included in the Ordinance
Rent Cap After Remodels: If a tenant is removed for a “substantial remodel,” they must be offered the unit back at no more than 5% + CPI or 10%, whichever is lower.
Mandatory 2nd Contractor Opinion:
Before ending a tenancy for remodel work, a second, independent contractor (Class A, B, or B-2 licensed) must provide a signed, written opinion stating the work cannot be safely completed with the tenant in place and requires them to vacate for at least 30 consecutive days.This contractor cannot be the owner or the one hired to perform the work, and must not have a financial interest in the project.
The opinion must be signed under penalty of perjury and filed with the building permit application.
1-Year Freeze After Property Acquisition:
Owners who purchase properties with five or more rental units will be barred from issuing no-fault eviction notices for 12 months following acquisition.
While not explicitly labeled as “rent control,” these provisions go far beyond standard just cause eviction protections — functionally limiting pricing and timelines in ways that feel like rent stabilization by another name.
⚖️ Another Layer on Top of a Stacked Deck
Let’s not lose sight of the bigger picture.
The legal landscape isn’t just evolving — it’s snowballing. As I shared during a recent presentation to local agents and brokers, 2024 and 2025 have already introduced six major state-level rental laws, including:
AB 12: Caps security deposits at one month’s rent
AB 2801: Requires before-and-after photo documentation and limits cleaning charges
SB 611, AB 2347, AB 2493: Tighten rules around application processing, lease fees, and eviction timelines
SB 267: Prevents landlords from using credit reports to deny Section 8 applicants
And now, the City of Santa Barbara is adding its own local layer — one that doesn’t apply to other cities in the county, at least for now. Santa Barbara has historically been the most progressive district, often leading the charge on housing policy. But neighboring jurisdictions have a track record of following suit once the City works through the implementation and legal challenges.
This may not stay a City-specific issue for long. It could set the tone for housing regulation across the region — and it’s happening at a time when housing providers are already being asked to do more with less: higher compliance, higher costs, and higher risk.
💬 What This Means for Property Owners
At Mission City, our approach has always been simple: treat people fairly and manage properties responsibly. But under this ordinance, even the most well-intentioned landlords face new barriers that could push them out of the market altogether.
The ripple effects are real:
Investors may hesitate to buy into Santa Barbara’s rental market.
Property upgrades may stall under the weight of red tape and compliance costs.
Longtime landlords may decide to sell, and with restrictions like these, it likely won’t be another small owner stepping in — more likely an institutional buyer, or no buyer at all.
And honestly, I keep hearing the same thing from self-managing landlords:
“We’ve been nothing but fair to our tenants — some for over 10 years — and now it feels like we’re the ones being penalized. What is the point of being a landlord anymore?”
During the meeting, Councilmembers Oscar Gutierrez and Meagan Harmon acknowledged these concerns. To paraphrase:
“We understand landlords may feel less motivated to renovate under this ordinance, but we’ve also walked these neighborhoods and seen the condition of many rental properties firsthand.”
That’s fair — there are certainly properties that need attention. But if the issue lies with a handful of neglectful owners, why not create targeted enforcement rather than sweeping rules that affect everyone?
This ordinance casts a wide net, placing the same restrictions on responsible, community-minded owners who continue to invest in and maintain their properties.
In the coming weeks, I’ll be publishing a full breakdown of each section of this new ordinance — along with our perspective on how it affects tenants, landlords, and the broader Santa Barbara community.
🧭 Not Sure What to Do Next? Let’s Navigate It Together.
If you’re a property owner trying to make sense of what this all means — you’re not alone. And you don’t have to figure it out by yourself.
At Mission City Property Management, we focus on local, people-first approach — helping owners stay compliant, informed, and confident in an ever-changing landscape. Our well-established network of contractors, legal experts, and housing professionals allows us to offer real solutions — not just advice.
And if we’re not the right fit for what you need? We’ll point you in the right direction and make sure you leave the conversation with clarity, not confusion. Because your peace of mind isn’t just a benefit — it’s the foundation of what we do.
📩 info@missioncitypm.com
📞 805-319-7000
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