As a property owner in Santa Barbara, keeping up with local rental housing laws has always required a watchful eye. However, 2026 has brought some of the most significant regulatory shifts the city has seen in a generation.
With a temporary rent freeze active and a permanent rent stabilization ordinance moving steadily toward implementation, Santa Barbara landlords must understand exactly how these rules impact their investments, baseline rents, and day-to-day operations.
Here is a breakdown of what is currently in effect, what is on the horizon, and how to keep your property compliant.
1. The Active Temporary Rent Freeze: What You Need to Know
In early 2026, the Santa Barbara City Council enacted a temporary citywide moratorium on rent increases. This policy was explicitly designed to pause rising costs while the city hammers out permanent rent control rules.
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The 0% Cap: If your property is covered, you currently cannot implement any rent increases. Near-term income growth is effectively paused.
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The December 16, 2025 “Lookback” Rule: The city established December 16, 2025, as the legal baseline for rent amounts. If you issued a rent increase in January or February of 2026, that increase isn’t necessarily voided, but it will be deducted from future allowable increases once the freeze expires.
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When Does It End? The moratorium is scheduled to automatically expire on December 31, 2026, or whenever the permanent ordinance goes into effect.
2. Is Your Property Covered or Exempt?
Jurisdiction and property type are critical here. The local rent freeze only applies to properties located within Santa Barbara city limits (unincorporated areas of the county are still governed by state law under AB 1482).
Furthermore, the ordinance primarily targets older multi-family housing stock.
What is Covered:
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Multi-family apartments with a certificate of occupancy issued on or before February 1, 1995.
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Duplexes built before 1995 (unlike some state exemptions, local duplexes are included).
What is Exempt:
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Single-family homes (unless owned by a corporate entity).
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Condominiums and townhomes (unless corporate-owned).
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Newer construction built after February 1, 1995.
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Government-subsidized or deed-restricted affordable housing.
3. On the Horizon: The Move to Permanent Rent Stabilization
The city has already released its working draft for a permanent Rent Stabilization Ordinance, which is on track for adoption later this summer and slated to take effect on January 1, 2027.
If the current framework is approved, landlords can expect the following permanent restrictions starting next year:
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Strict Rent Caps: Annual rent increases will be capped at 60% of the Consumer Price Index (CPI) or 3%, whichever is lower.
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One Increase Per Year: Landlords will only be permitted to raise the rent once within any 12-month period.
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No “Rent Banking”: If you choose not to raise the rent one year, you cannot carry that percentage over to “bank” a larger increase the following year.
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The Rental Property Registry: The city is establishing a mandatory registry. By early 2027, landlords must register every covered unit, detailing bedroom/bathroom counts, ownership data, and current rental rates. Crucial Note: Landlords who fail to register their units will be legally barred from collecting rent, advertising vacancies, or issuing notices.
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A New Petition Process: Both parties will have a formal channel to request adjustments. Tenants can petition for lower rent if habitability drops, while landlords can petition for higher increases if they have made major capital improvements to the property.
4. Stricter Eviction and Ellis Act Rules
Alongside rent caps, the city has tightened restrictions on no-fault evictions—particularly when a landlord intends to remove a property from the rental market entirely. Under the updated rules, owners utilizing the Ellis Act must withdraw all units on a property lot at the same time (no partial withdrawals), and re-renting those units is strictly prohibited for five years.
Proactive Planning for Santa Barbara Landlords
With tighter margins and an unprecedented wave of administrative requirements like the upcoming 2027 rental registry, self-managing a property in Santa Barbara is becoming highly complex. Accurate record-keeping regarding your December 2025 baseline rent and strict adherence to the current 0% freeze are essential to avoiding heavy legal penalties or ongoing litigation.
If you are feeling overwhelmed by the shifting regulatory landscape, now is the perfect time to audit your portfolio, assess your property’s exemption status, and ensure your documentation is ironclad before the permanent registry launches. Give us a call or reach out online for a free consultation.