Santa Monica rental license requirements

Important Deadline: The new citywide Rent Registry takes effect January 1, 2026, with enforcement beginning January 1, 2027. Owners who have not registered by then cannot legally collect rent and may face $200 per unit per month in penalties.

This page is a simple, plain-language explanation of how Santa Monica's residential rental licensing rules generally work. It does not replace official guidance from the City and is not legal advice, but it can help you understand what to expect before you start.

Who needs a Santa Monica business license?

In Santa Monica, anyone renting out residential space is treated as a business and must have a City business license:

• If you rent out a house, condo, apartment, or other dwelling you own in Santa Monica, you're required to obtain and maintain a separate business license for each property.
• This applies whether you own one rental or many—even a single condo requires a business license.

Common examples

Residential Leasing Requirements (SMMC 6.22)

On top of the business license, Santa Monica has Residential Leasing Requirements in Chapter 6.22 of the Municipal Code. Key points for most standard rentals:

• Written lease required
• Initial term must be at least 1 year
• Unit must be leased unfurnished (with narrow exceptions)
• Tenant must use and occupy the unit as their primary residence and provide documentation within 60 days of lease start

There are exemptions, including certain owner-occupied situations, lawful home-sharing under Chapter 6.20, temporary relocation housing, and certain subleases where the sublessor remains in the unit.

New Citywide Rent Registry (2026-2027)

Santa Monica recently adopted a rental registration ordinance that will require all rental units (including market-rate units that are NOT under rent control) to be registered.

Currently, only rent-controlled buildings must register with the Rent Control Board, but the new ordinance extends registration to all rentals, including market-rate.

Rent Control Registration (Existing)

For rent-controlled units, you must register each new tenancy within 30 days of move-in using the Rent Control Board's forms. If you fail to register, you may lose the ability to impose rent increases allowed by annual general adjustments.

Key parts of the licensing process

The Santa Monica process generally involves:

Documents you'll need

Typical documentation requested during the process may include:

• Business license application form (Residential Property Lessor packet)
• Basic ownership information and contact details
• Property address and number of rental units at that address
• Lease documentation showing compliance with SMMC 6.22
• Rent Registry property registration statement
• Any supporting documents the city requests as they review the application

How we fit into this process

Our role is to make this easier for owners by:

• Completing the Residential Property Lessor Business License application
• Ensuring your lease complies with SMMC 6.22 requirements (1-year term, unfurnished, primary residence)
• Registering rent-controlled units with the Rent Control Board if applicable
• Registering your property with the new citywide Rent Registry before the January 1, 2027 deadline
• Handling annual renewals and keeping all registrations current