2025 Year-End Update: What Santa Monica’s New Rental Registration Law Means for Landlords and Tenants

Santa Monica has introduced one of its most significant rental policy updates in years, and with 2025 coming to an end, it’s essential for everyone involved in the local housing market to understand what’s changing before the new year begins.

This shift creates an important moment for property managers to refine internal processes, for landlords to verify that their properties meet upcoming requirements, and for tenants to anticipate greater transparency and oversight. In the sections below, we break down the key elements of the ordinance, the city’s rationale, the risks of non-compliance, and how SGRE can guide you through a smooth transition into 2026.

What the New Ordinance Requires

• Registration of all rental units: This includes duplexes, single-family homes, condominiums, townhouses, accessory dwelling units (ADUs), junior ADUs, and all non–rent-stabilized multifamily properties.

• Detailed unit-level data: When registering, landlords will need to provide information such as: if the unit is occupied, when the current tenant moved in, the rent amount, why the last tenant left, what amenities the unit has, who pays utilities, and other basic details.

• Penalties for non-compliance: Landlords who do not register their units can face civil penalties US$ 200 per unit per month. Even more serious: starting January 1, 2027, they may not be allowed to legally collect rent if the unit is still unregistered.

• Affirmative defense for tenants: If an owner tries to evict a tenant (such as through an unlawful detainer), tenants may use non-registration as a defense.

  
  

Why Santa Monica Did This And What It Means

The City says the registration requirement will help them enforce existing laws more effectively, especially for "market-rate" (non–rent-controlled) units. Key reasons include:

• Enforcing the Tenant Protection Act (AB 1482): This state law limits how much rent can increase each year for many older multifamily buildings. The registry helps Santa Monica see which units qualify and check if the rules are being followed.

• Monitoring rent increases during emergencies: The registry gives the city the information it needs to enforce limits on rent increases during emergencies (such as natural disasters).

• Enforcing local tenant-protection laws: The registry helps track no-fault evictions, harassment claims, relocation fees, and buyout agreements

• Creating a complete rental database: With unit-by-unit data, the city can better understand the entire rental market including units that were never regulated before which helps with enforcement and long-term planning.

Santa Monica wants landlords to be more transparent and consistent not just in rent-controlled buildings, but in all rentals.

What Happens If Landlords Don’t Act

Not complying is more than just paying a fine. The consequences increase over time:

• Monthly $200 fines per unit if the unit stays unregistered.

• Starting 2027, the city may block landlords from collecting rent for any unregistered unit.

• If an unregistered landlord tries to evict a tenant, the tenant may use non-registration as a defense which could stop the eviction.

This gives tenants more protection, and it gives landlords a strong reason to register early.

How Strategic Growth Real Estate Can Help and Why Landlords Should Act Now

As a property management firm deeply involved in the Los Angeles market, SGRE is well prepared to help landlords understand these changes and turn them into an advantage. Here’s what we can do:

1. Portfolio audit & registration: We can review all your rental properties single-family, condos, ADUs, multifamily and prepare the information needed for registration (tenant dates, rents, amenities, utilities, past vacancies, and more).

2. Compliance calendar & deadlines: We track all key dates (January 1, 2026 start date; January 1, 2027 rent-collection rule) to ensure nothing is missed.

3. Documentation & record-keeping: SGRE helps keep your paperwork in order leases, move-in and move-out dates, rent history in case the city asks for details.

4. Tenant communications & transparency: We can prepare clear notices for tenants so they understand what’s happening, helping avoid confusion or conflict.

5. Risk mitigation & legal protection: By staying compliant early, you avoid fines, lost rent, and possible legal problems.

For small landlords, these rules might feel overwhelming but SGRE can make the process simple. And for landlords growing their portfolio, this ordinance helps build a more organized and professional rental market, which can improve property value and demand.

📰 What Else Is Happening in Santa Monica Context Worth Knowing

• In November 2025, the city approved a vacant property registration ordinance: owners of vacant buildings must register them by July 1, 2026 (or within 30 days of the vacancy). The goal is to reduce vandalism, squatting, and other safety concerns in empty buildings.

• Santa Monica is also moving forward with zoning changes to comply with recent state housing laws. This includes more flexibility for ADUs / JADUs, duplexes, and lot splits in single-family areas creating more chances to build or convert rentals.

• The Santa Monica Housing Authority (SMHA) recently approved its 2025–2030 plan, which includes expanding supportive housing, building more affordable units, and increasing inspection standards under HUD’s NSPIRE program. This shows more oversight in affordable and voucher housing.

Together, these updates show Santa Monica is focusing on more transparency, stronger tenant protections, and more regulated rental growth, while also trying to increase housing supply.

Why This Matters for Landlords and Tenants

As of November 2025, with the new rental registry approved and starting January 1, 2026, now is the perfect moment to get prepared.

• For landlords, this is a great chance to organize records, improve operations, and stay compliant before fines or rent restrictions begin.

• For tenants, the registry may bring more transparency and stronger protections, helping both long-term renters and those at risk of eviction or rent spikes.

• For property managers like SGRE, this change highlights the importance of strong systems, good communication, and reliable support.

At Strategic Growth Real Estate, we are already updating our processes to follow Santa Monica’s new rules and we’re ready to help our clients do the same. If you own property in Santa Monica (or are planning to invest there), now is the time to take action.

Sources:

• “News Alert: Santa Monica Adopts Rental Registration Requirement for All Rentals,” Apartment Association of Greater Los Angeles, Nov 20, 2025. ([members.aagla.org][1])

• “Rent Registry to Kick in for Market Rate Units,” The Lookout (Santa Monica), Nov 13, 2025. ([surfsantamonica.com][2])

• “New Law Requires Owners to Register Vacant Properties,” The Lookout (Santa Monica), Nov 18, 2025. ([surfsantamonica.com][3])

• “In Effort to Bring More Housing, Comply with State Law, Council Approves Zoning Changes,” SantaMonicaNEXT, May 2025. ([santamonicanext.org][4])