Shawn Lavi, CPA, is the principal and the author of this page. Elias Lavi is co-owner and founder.
On October 6, 2026, the City of Santa Barbara adopted a new rent ordinance and approved new short-term rental ordinances. If you own rentals inside city limits, both can affect your costs and your filings. We work with Santa Barbara owners remotely, by Zoom, phone, and secure upload, from our only office at 7707 Sunset Blvd in Los Angeles. We have no office in Santa Barbara.
A CPA owner reviews your file: Shawn Lavi, CPA or Elias Lavi, CPA.
Rent stabilization and a citywide rental registry
On October 6, 2026, the City Council adopted the Residential Rent Stabilization and Residential Rental Registry Programs Ordinance by a 4-3 vote. It sets rules for annual rent adjustments, creates a Rent Stabilization Board, and builds a registry of all rental properties in the city.
The city still has to run a fee study, hire an administrator, and build the registry. So the registry fee is not set yet. When it is, we will book it as a rental expense and fold the allowed rent increases into your projections.
Short-term rental licensing
The same night, the Council approved new short-term rental ordinances for inland and coastal areas. The rules keep a two-night minimum stay and allow one STR license per person or entity.
For inland areas, the rules are expected to take effect January 11, 2027, when licensing opens. Existing unpermitted rentals would have until July 10, 2027 to get licensed. The coastal rules need California Coastal Commission certification first.
Short stays owe transient occupancy tax and the tourism district assessment, the TBID. If you rent short term today, we will help you plan for a license or a switch to longer leases.
The city business tax certificate
Santa Barbara wants property owners who receive rent to hold a business tax certificate. Owners with 3 or more residential units, or any commercial property, file based on rents received. Certificates follow the calendar year.
The city line matters. Montecito, Isla Vista, Santa Ynez, and Summerland are unincorporated and fall under the county, not the city. Santa Barbara County's regular appeal window runs July 2 through November 30.
Santa Barbara FAQs
Do I need a Santa Barbara business tax certificate for a duplex?
The city's filing rule based on rents applies to owners with 3 or more residential units or any commercial property. A duplex alone generally falls below it.
Does the new rent stabilization ordinance cover Montecito?
It is a City of Santa Barbara ordinance. Montecito is unincorporated county land, outside city limits.
When does Santa Barbara STR licensing start?
For inland areas, licensing is expected to open January 11, 2027. Coastal areas follow after Coastal Commission review.
Book a free 30-minute New Client Introduction
Tell us what you own in Santa Barbara and how you rent it. We will tell you what the new rules mean for your return.
Book a free 30-minute New Client Introduction
General information only, not advice for your situation. Rules and rates change, so we confirm them before you act.