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What is the new cap on rent increases in Santa Barbara? | Local News


What is the new cap on rent increases in Santa Barbara? | Local News

Earlier this month, tenants in Santa Barbara County may have received a 30-day notice of a rent increase.

The statewide renter protection law, passed in 2019, limits how much landlords can increase rent each year.

Landlords may not increase rent by more than 10% or 5% plus the percentage change in the cost of living, whichever is lower, over a 12-month period.

As of August 1, the cap on rent increases in Santa Barbara is 9.1%, 0.5% lower than the maximum annual increase in 2023.

The percentage change in the cost of living is determined using the Consumer Price Index of the Bureau of Labor Statistics.

The consumer price index for the Pacific Division, which includes California, Alaska, Hawaii, Oregon and Washington, was 4.1% in April. Adding 5% gives a 9.1% cap on rent increases. This will remain in effect until August 2025.

The law applies to most residential rents, except for apartments built in the last 15 years. Tenants in newer buildings can expect a larger increase from their landlords, according to the state.

In January, the Santa Barbara City Council passed a tenant protection ordinance. It gives tenants a right of first refusal if their landlord renovates the property, but there is no limit on how much they can raise the rent after renovations. Tenants and advocacy groups wanted a 10% cap.

This year, there are further legal changes for landlords and tenants.

Since July 1, landlords are only allowed to demand deposits of one month’s rent. An exception applies to small owners who own no more than two rental properties with a total of four residential units.

Find county resources for private landlords here.

If tenants believe their landlord is raising rent more than allowed, they can contact the Santa Barbara City Rental Housing Mediation Program at 805.564.5420. The program offers mediation to residents of Santa Barbara, Goleta and Carpinteria. Landlords can also contact the program for mediation or questions.

Tenants can also contact the Santa Barbara Tenants Union by phone at 805.765.2831 or join the Tenant Helpdesk via Zoom on Thursdays at 6 p.m.

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