Santa Monica, CA Rental Property Rules: Relocation Assistance (2026)
Key Facts
- Rent increase trigger
- Exceeds lesser of CPI+5% or 10% cap
- Tenant election period
- 120 days after receiving triggering rent notice
- Counseling fee per unit
- $250 or City-approved Displacement Plan
- Civil penalty for non-payment
- $500 plus damages and attorneys' fees
- Escrow requirement
- Fee deposited before termination notice is served
- Fee amount set by
- City Council resolution
Summary
Santa Monica landlords must pay a mandatory relocation fee when displacing tenants for demolition, Ellis Act withdrawal, owner-occupancy, or when imposing rent increases above the CPI+5% or 10% cap. Fees are set by City Council resolution and must be deposited in escrow before the termination notice is served.
§ 4.36.020. When permanent relocation fee required.
(a) A landlord shall pay a relocation fee to a tenant whose tenancy is terminated or caused to be terminated in any of the following circumstances.
(1) The landlord has filed a notice of intent to withdraw the tenant's rental housing unit from the rental housing market pursuant to Government Code Section 7060 et seq.
(2) The landlord has filed a notice of intent to recover possession of the tenant's rental housing unit pursuant to Section 1806(a)(8), 1806(a)(9), 2304(a)(8), or 2304(a)(9) of the City Charter.
(3) The landlord has filed an application for removal permit pursuant to City Charter Section 1803(t) to demolish or otherwise withdraw the tenant's rental housing unit from the rental housing market.
(5) The tenant elects to relinquish their tenancy within one hundred twenty days after service of a notice of rent increase that exceeds the lesser of (1) the Consumer Price Index - All Urban Consumers, plus five percent; or (2) ten percent.
Full Breakdown
The relocation fee applies in at least eight distinct triggering circumstances, including Ellis Act withdrawal, demolition or removal permits, owner-occupancy evictions, and rent increases exceeding the lesser of CPI+5% or 10%. The amount is established by Council resolution and the landlord must deposit the full fee into a City-approved escrow account before serving a termination notice. A separate $250 counseling fee is also required per unit unless a City-approved Displacement Plan is filed.
Violations & Fines
Failure to provide relocation assistance exposes the landlord to injunctive relief, civil damages equal to the unpaid fee, a $500 civil penalty, and reasonable attorneys' fees. Criminal conviction results in a fine up to $500 or up to six months in County Jail.
Frequently Asked Questions
Does a rent increase trigger relocation assistance?
When must the landlord deposit the relocation fee?
Does relocation assistance apply to owner-occupancy evictions?
Sources & Official References
Other rules in Santa Monica
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Relocation Assistance in Nearby Cities
How other cities in Los Angeles County handle relocation assistance.