Navigating the New Santa Barbara Rental Remodeling Rules for Property Owners
- Daniel Huls
- Apr 30
- 2 min read
Updated: May 5
Santa Barbara Tenant Law: New Rules of the Remodel Game
The Santa Barbara City Council recently voted 4-2 to adopt a few amendments to the tenant protection ordinance (originally passed in 2024), and these changes have some serious implications, especially if you're planning any substantial remodels.
At Blue Horizon Management Company, we're all about keeping you in the loop, so here's the lowdown on what you need to know.
The Remodel Rent Cap Tango
So, you've got a unit that needs a glow-up, and a tenant needs to temporarily relocate. Under the new rules, when that tenant returns, you can't just jack up the rent to the moon. Instead, the new rent is capped at the original rent (from when you gave the eviction notice) plus the lesser of:
Five percent (5%) plus the change in the California Consumer Price Index (CPI), or
Ten percent (10%).
Basically, Santa Barbara is treating this whole remodel thing as a "temporary interruption" of the tenancy. The tenant's right of first refusal is now glued to the original lease, which means continuity of tenancy with a rent increase that has limitations.
The Third-Party Expert Hustle
Thinking of doing a remodel that requires your tenant to vacate? Get ready for some extra paperwork. You'll now need a report from an independent, licensed construction expert. This report needs to explain, under penalty of perjury, why the work can't be done safely with the tenant in place and confirm they need to be out for at least 30 consecutive days.
And here's the kicker: this report needs to be filed with your building permit application, and it can't be prepared by anyone with a financial stake in the project. Translation? No cutting corners.
New Ownership One-Year Waiting Game
If you're a new owner of a property with five or more rental units, you'll need to pump the brakes on those no-fault, just-cause evictions for demolition or substantial remodels. You've got to wait a full year from your acquisition date before starting that process.
Blue Horizon's Take
We get it. These amendments add layers of complexity and potential burdens to owners, with the goal of helping tenants in an expensive stressful rental market. At Blue Horizon Management Company, we're committed to:
Keeping you informed about these evolving rules and what they mean for you.
Ensuring your properties are managed in full compliance with all the latest legal mumbo-jumbo.
Pushing for solutions that create a level playing field for both tenants and property owners in Santa Barbara.
Santa Barbara's housing challenges require a balanced approach, and we're here to foster open communication and work towards a housing future that's fair and sustainable for everyone.
Stay tuned for more updates!
Sincerely,
Blue Horizon Management Company