The People's Republic of Santa Monica

Here’s a video from real estate investor and youtuber Graham Stephan. He’s explaining (starting at 7:23) why he is selling a home in Santa Monica instead of renting it out–it’s the rent control laws, of course. The laws are strongly biased against landlords. Perhaps landlords should be a protected class.

Everything he says about the law, by the way, is accurate. I was initially skeptical (as was Google Gemini) that homes had to be rented unfurnished. Why would that stupidity be a law? But no, it’s accurate. Apparently, the idea is to make it more difficult to rent to temporary residents.

To preserve rental housing for permanent residents, all rental units must be rented unfurnished for an initial term of not less than one year and only to natural persons intending to use the unit as their primary residence.

Here’s Google Gemini summarizing, once I corrected it on the unfurnished home law.

The speaker’s understanding of the Santa Monica Rent Control and Just Cause laws is highly accurate in almost all respects:

Subject to Rent Control (7:50): Accurate. A non-primary residence built before 1979 is typically subject to the law.

Indefinite Tenancy (8:50): Accurate. Tenants gain “permanent right” to occupancy as eviction is limited to specific “just causes.”

Rent Increase Limit ($60/AGI) (8:13): Accurate. The annual rent increase is capped by a fixed, low dollar amount (the AGI), which closely aligns with the speaker’s figure.

No Eviction to Sell (8:57): Accurate. Selling the property is not a “just cause” for eviction.

Owner Move-In (OMI) Requirements (9:14):Accurate. Eviction for OMI requires paying substantial relocation fees, re-offering the unit if re-rented within two years, and prohibits eviction during the school year.

Furnished Home Prohibition (9:56):Accurate. Santa Monica requires rental units to be initially rented unfurnished to permanent residents.

Hat tip: Naveen Nvn who also says this video is worth watching.