Avoid costly mistakes. Protect your investment. Stay ahead of the law.
Let’s be honest—this isn’t a simple checklist. Property management in Santa Barbara used to be relatively straightforward. Those days are long gone.
Between tightening state laws, new local ordinances, overlapping exemptions, and stricter notice and relocation rules, what used to be “standard” is now often non-compliant.
We’re not in Kansas anymore. If you're still managing your rental like it's 2015, you're setting yourself up for trouble.
Whether you manage a single-family home or a triplex, here are 10 real-world tips to help you navigate today’s rental climate, reduce risk, and operate with confidence:
1. Comply with Local Just Cause Ordinances & the 1-Year Lease Requirement
If your property is not exempt from California’s just cause laws—or if you failed to serve the required exemption notice in writing—you are legally required to offer tenants a 1-year lease, even at renewal.
This requirement applies in:
City of Santa Barbara
City of Goleta
Unincorporated Santa Barbara County
(Carpinteria does not currently have a local ordinance.)
If the tenant declines, you must obtain a signed and dated form confirming the offer was made.
Failing to document this properly can result in your eviction case being thrown out—even when all other steps are valid.
⚠️ Attention: Short-Term & Furnished Rental Owners
If you're offering 30-day or longer stays in furnished units, this rule still applies.
Even with a lease term under one year, if you did not provide the AB 1482 exemption notice in writing,
your property is now subject to just cause eviction laws—state and local.
This means:
You cannot terminate tenancy without a legal “just cause”
You may owe relocation assistance and be required to offer a 1-year lease
The short lease does not protect you unless the exemption was clearly disclosed in writing
👉 This is one of the most common—and costly—mistakes we see self-managing landlords make.
2. Evaluate Your Lease Agreement Annually
If your lease hasn't been reviewed in the past year, it's likely outdated. Between 2023 and 2025, California enacted over a dozen new rental laws, and local jurisdictions like Santa Barbara, Goleta, and the County added at least six more ordinances.
Outdated lease language is one of the most common compliance traps for landlords—and often the easiest to fix.
Lease renewal is also the right time to reassess rent. With CPI shifts, changing thresholds, and local limits, rent should be reviewed every year—not just at turnover.
At Mission City, we recommend:
Keeping great tenants 10–15% below market as a stability incentive
Applying modest, consistent increases if a tenant is more than 15% under market (unless you're intentionally offering discounted housing)
Even before repair or turnover costs, one month of vacancy alone can mean an 8% hit to your annual rental income.
Add in improvements and re-leasing time, and the cost of forcing out a good tenant grows quickly.
3. Stay Within Legal Rent Cap Limits
Most non-exempt rentals are capped at 5% + CPI, with a maximum of 10%. For 2024, that cap is 8.8%.
CPI is calculated April to April, but the cap applies to increases that take effect from August 1 to July 31 the following year. The April 2025 CPI will apply to increases effective 08/01/25 through 07/31/26.
If your property is exempt from just cause but you raise rent over 10%, a 90-day notice is required.
Using the wrong cap—or the wrong notice period—not only makes the increase unenforceable, it can also undermine your ability to evict.
Important local update:
The City of Santa Barbara recently passed a rent stabilization ordinance aimed at preventing so-called “renovictions.” If you plan to terminate a tenancy for substantial remodels, there are now new restrictions, documentation requirements, and timing rules you must follow—including potential rent caps post-remodel.
This signals a broader local shift toward rent control enforcement—even for owners who previously assumed they were exempt.
4. Follow New Security Deposit Limits
California now caps most security deposits at one month’s rent. While there is a small landlord exemption, it’s easy to misapply.
We now standardize all deposits at 1x rent—it’s simple, compliant, and defendable.
AB 12 and AB 2801 require timely returns, itemizations, and photo evidence. Mistakes can lead to triple damages.
5. Provide All Required Disclosures
Landlords are required to give various disclosures depending on property type and age, including:
Flood risk
Pest control
Mold
Bed bugs
Lead-based paint
Each has its own rules, and missing one can delay or invalidate an eviction—even if the tenant is clearly at fault.
6. Prioritize Safety & Preventative Maintenance
SB 721 mandates balcony and walkway inspections for buildings with 3 or more attached units, including triplexes.
Isla Vista is rolling out its own local inspection ordinance as well.
Preventative inspections protect your tenants—and your liability.
7. Use Written Agreements—and Serve Legal Notices Correctly
All notices (rent increases, lease violations, terminations) must be in writing and served correctly under California law.
Notices must follow this legal order:
Personal service to the tenant
Substitute service to an occupant of suitable age
Only if no one is home—post and mail
Skipping directly to post-and-mail is a common mistake—and can invalidate your notice.
Always retain a dated Proof of Service.
8. Follow Legal Termination Procedures
If a tenant has lived in the unit over a year, you must give a 60-day notice to end a month-to-month tenancy.
Fixed-term leases technically don’t require notice of non-renewal, but we recommend it.
Also include a statement confirming whether the unit is subject to just cause.
If you haven’t served an exemption notice, the unit is subject to just cause—and your notice could trigger mandatory relocation assistance.
Relocation requirements:
Goleta – 2x monthly rent
Santa Barbara City – 2x monthly rent
Carpinteria – 2x rent or $6,500 (whichever is greater)
Santa Barbara County – 3x HUD Fair Market Rent or $7,000 (whichever is greater)
Even a valid reason won’t hold up in court if notice requirements are missed.
9. Keep Detailed Records—and Require Renters Insurance
Every lease, notice, inspection log, and tenant communication should be documented and stored.
We also strongly recommend requiring renters insurance—with Loss of Use coverage.
If a plumbing issue displaces your tenant, their insurance covers hotel costs—not you.
You handle the repair. They cover their own stay.
10. Don’t Manage Alone—Have a Professional in Your Corner
Even full-time managers are struggling to keep up. Laws are changing, enforcement is increasing, and tenant protections are getting more complex.
If this isn’t your full-time job, how can you be expected to stay fully compliant?
Working with a knowledgeable manager helps you avoid costly mistakes, protect your investment, and reduce day-to-day stress.
Take a Breath 😮💨
We know — it’s a lot. So here’s a quick reset:
✔️ Landlord Compliance Quick Check
Lease updated in the last 12 months?
Just cause exemption notice served (if applicable)?
If subject to just cause — 1-year lease offer made annually? (Excluding Carpinteria City)
Rent increase within CPI cap and proper notice given?
All required disclosures provided?
Safety inspections completed?
Good tenants rewarded — but rent still reviewed?
Renters insurance required?
Clean documentation and Proof of Service on file?
We're Here to Help
If you're feeling unsure about any of this—or just want a second set of eyes—we’re here to help.
We can:
Review your lease or compliance posture
Run a market rent analysis
Talk through any concerns about your property or tenant situations
Provide an investment breakdown (rate of return, renovation impact, ADU feasibility, and long-term strategies)
Schedule a free call anytime:
👉 calendly.com/missioncity/phone-consultation
No pressure. Just clear insights, thoughtful strategies, and a local expert focused on helping you protect and grow your investment.
