Updated October 19, 2026
If you are selling a rent-controlled condo in Santa Monica, the first question is whether your condo is still rent controlled at all. In Santa Monica a condominium is not automatically covered, and it is not automatically exempt. Whether it is controlled depends on four facts: whether the unit was ever sold separately by the person who converted the building, when the current tenant moved in, whether the unit is occupied by the owner or vacant, and whether the Rent Control Board has recognized any of this. Those four facts set your buyer pool and your price.
This is a broker's plain-English read of the City's own published material, not legal advice. Confirm the status of any specific unit with the Santa Monica Rent Control Board before you list.
California's Costa-Hawkins Act, in Civil Code section 1954.52, allows an owner to set rents on a unit that is "alienable separate from the title to any other dwelling unit." A condominium is the textbook example. That is why most condos and single-family homes elsewhere in California can be rented at market rates.
Santa Monica adds two things. First, a large share of its condos came from apartment buildings converted under the City's own Tenancy Ownership Rights Charter Amendment, known as TORCA. Second, state law carves out converted condos from the Costa-Hawkins exemption until the person who converted them has sold them. The City describes this rule as effective January 1, 2002: a separately alienable condominium unit that the subdivider has not sold separately to a bona fide purchaser for value is not decontrolled.
The City's 2024 annual report puts the numbers in one place. About 1,850 condominiums and single-family homes have qualified for rent-level decontrol, most of them owner-occupied. Roughly 3,100 TORCA condos would qualify if they meet the criteria. So there are thousands of condos in Santa Monica, and nobody should guess which side of the line yours is on.
One: was the unit sold separately by the subdivider to a bona fide purchaser for value? For a unit converted from an apartment, this is the gate. The City's fee-waiver application asks for proof, a final escrow settlement or a recorded grant deed. If the converter still owns the unit, or sold a whole group of units to one buyer in a way that does not qualify as a separate sale, the unit does not clear the gate. Get the deed history and the escrow records in hand before you assume the answer.
Two: when did the current tenant move in? The City's summary of the rules says rent-level decontrol applies to separately sold condominiums occupied by tenants who moved in after January 1, 1996, or that are vacant or owner-occupied. A tenant who moved in on or before that date does not meet the criteria the City lists. That tenant's rent stays controlled under the Rent Control Law while the tenancy lasts.
Three: is the unit owner-occupied or vacant? Both qualify under the City's description. This matters because a buyer who plans to live in the unit, or a seller who delivers it vacant, is selling a different asset than a landlord selling with a long-term tenant in place.
Four: has the Board recognized the status? Decontrol of rent level is something the Board tracks, and the City provides a registration fee waiver for qualifying condos and single-family homes. Separately, the Rent Control Law provides permanent exemptions that require a filing: a declaration under penalty of perjury that the home was vacant or not used as a rental on July 1, 1984, or an application based on two continuous years of owner occupancy as the principal residence. The City notes that acceptance of the declaration is not automatic and that the owner-occupancy exemption must be granted by the Board. Get the Board's record in hand before a buyer asks for it.
This is the point owners miss most often. Decontrol of the rent level is not an exemption from everything. The City's annual report says that for decontrolled single-family homes and condominiums, just-cause eviction protections under the Rent Control Law continue to apply. A buyer who thinks "decontrolled" means "I can remove the tenant" is wrong, and a seller who lets a buyer think so invites a retrade or a lawsuit later.
| Situation | What the buyer is buying | Who is likely to buy |
|---|---|---|
| Rent controlled, long-term tenant (moved in on or before January 1, 1996) | A condo with a rent ceiling and tenant protections; value rests on the capped income and on how long the tenancy lasts | Investors who underwrite turnover; patient owner-users |
| Decontrolled, tenant moved in after January 1, 1996 | A rental condo at current rent, with just-cause protections | Investors; owner-users willing to wait |
| Vacant | A home | Owner-occupants and investors |
| Owner-occupied | A home | Owner-occupants and investors |
The table is a summary of the rules above, not a price schedule. I do not publish a price for any of these categories, because the answer depends on the unit, the tenancy and the rent.
For a controlled unit, the key diligence document is the Maximum Allowable Rent record. My explainer on Santa Monica rent control covers why the MAR record outranks the rent roll. A discrepancy found by a buyer's analyst in week three becomes a concession. The same discrepancy found by you before listing is a clean file.
Santa Monica is its own city, so the LA City rules, including Measure ULA, do not apply. Santa Monica has its own transfer tax structure that should be confirmed against the current schedule before you model net proceeds. The costs of a Santa Monica sale are laid out in what it costs to sell a Santa Monica apartment building, and the buyers who show up for the market are in who buys apartment buildings in Santa Monica.
If you own several condos in one building rather than a single unit, the question is bigger: you hold part of an association and part of a rental portfolio. Start with selling versus converting to condos or TIC and selling a whole building versus a partial interest for that structure.
A rent-controlled condo in Santa Monica is priced on a paper trail. The building's converter, the date of one tenant's lease and a filing at the Board decide whether you are selling a home, a rental with a ceiling or something in between. The sellers who do best open the file before the buyer does.
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Are condos in Santa Monica rent controlled?
Some are. Costa-Hawkins lets owners set rents on separately alienable units, but for condos converted from apartments the City applies the exemption only after the subdivider has sold the unit separately, and the City's criteria turn on whether the tenant moved in after January 1, 1996, or the unit is vacant or owner-occupied.
Can I evict a tenant to sell my Santa Monica condo?
The City says just-cause eviction protections continue to apply even to condos whose rent level is decontrolled. Ownership change or a desire to sell is not a reason on its own. Speak with a landlord-tenant attorney before serving any notice.
Do I have to register a rent-controlled condo with the Rent Control Board?
Controlled units are registered with the Board. The City offers a registration fee waiver for qualifying separately sold condominiums and single-family homes, which requires proof of a separate sale by the subdivider and a qualifying tenancy or vacancy.
What is a TORCA condo?
A condominium converted from an apartment under Santa Monica's Tenancy Ownership Rights Charter Amendment. The City estimates about 3,100 of them could qualify for rent-level decontrol if they meet the criteria.
Does Measure ULA apply to a Santa Monica condo sale?
No. Measure ULA is a City of Los Angeles transfer tax. Confirm Santa Monica's own transfer tax before you model proceeds.
Michael Sterman is Senior Managing Director Investments at Marcus & Millichap, specializing in Los Angeles multifamily transactions, most of them on rent-controlled inventory.
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