How to Complete the Notice of Change in Terms of Tenancy

The Rent Control Board announced a 2.8% General Adjustment increase to the Adjusted Maximum Allowable Rent (MAR) for all eligible units with a maximum increase of $67 for Adjusted MARs of $2,375 and above, effective September 1, 2023. The Adjusted MAR for a unit is the rent in effect on August 31, 2022 plus three percent, or plus $70 for rents of $2,317 or above.

Complete a Notice of Change in Terms of Tenancy - 2023 form for each unit whose rent you need to change.

For Tenancies that began or properties that were reassessed on or after 3/1/18, you may not include any surcharges from the property tax bill. For those units you can use the Simplified Notice of Change in Terms of Tenancy - 2023.

A unit is eligible for the 2023 General Adjustment if all the following apply:

  • The tenancy started before September 1, 2022.

  • The tenancy has been properly registered with the Rent Control Agency.

  • You comply with state laws that require at least 30 days advanced written notice of the rent increase.
  • The property does not have any uncorrected citations for violations of health, safety, or housing laws.
  • All registration fees and penalties owed the Rent Control Board have been paid in full by August 1, 2023.
  • You otherwise are in compliance with the Rent Control Law.
Continue the Process:

You may fill out the notice online, and then you will need to print it to serve on tenants in accordance with state law.

  1. Download the Form or Contact Our Office for a Paper Copy

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    A fillable form may be downloaded here. If you would rather fill out a paper copy, please call our office at (310) 458-8751 during business hours and request that a paper form be mailed to you.

  2. Complete Part A: 2023-2024 MAR (Lines 1 – 3)

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    This is where you increase the Adjusted Maximum Allowable Rent (MAR) per this year's general adjustment of 2.8%. The increase cannot exceed $67. To complete this section, please refer to the most recent Report of Maximum Allowable Rents for your property, which all property owners or their authorized agents should receive by mail no later than mid-July.  If you do not have the Report, you may view or download it from our online document portal by searching for your address. See How to Use the Rent Control Document Portal for more information. CIVICs account holders can find the Report of Maximum Allowable Rents as an attachment on the assessor's site master record on their dashboard.

    • For each unit listed, verify that the tenancy is properly registered. Does the date shown in the “Market Rate Established” column match your record of when the tenant moved in? If you find a new tenancy hasn’t been registered, you must file a Tenancy Registration form before increasing the rent by the general adjustment.  If you’re not sure, call Rent Control to check what’s on record.
    • If the tenancy is properly registered, look for the numbers 1, 2 and 3 above the column headings on the Report of Maximum Allowable Rents and Change in MARs as of September 1, 2023  The information in Columns 1, 2 and 3 corresponds with what you may write on Lines ❶, ❷ and ❸ of the Notice of Change in Terms of Tenancy form for each rental unit.
    • Line ❶ is the 2022-2023 Adjusted MAR before this year’s increase. This amount does not include the registration fee or any surcharges, which are separate from the MAR. Be careful to calculate the increase on just the Adjusted MAR. The registration fee and any surcharges are added in Parts B and C.
    • Line ❷ is this year’s increase to the Adjusted MAR – either 2.8% of Line ❶ or $67, whichever is less.
    • Line ❸ is the sum of Lines ❶ and ❷, and it should match the amount in Column 3 of the Report of Maximum Allowable Rent. We did the math for you there.

    Remember, only tenancies that have been in place for at least one year are eligible for the general adjustment. If you see “N/E” under the “September 1, 2023 GA 2.80% (max$67)” column for any unit, it means the tenancy is not eligible for the GA and the MAR does not change this year. Units may be ineligible for the GA for other reasons as well.

  3. Complete Part B: Rent Control Registration Fee Pass-Through (Line ❹)

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    If you paid the registration fee by the due date of August 1, 2023, you may pass through half of the monthly amount to tenants on this line. The annual fee of $228 breaks down to $19.00 monthly, and half of that is $9.50, which is the amount you enter on this line.

    Low-income tenants who are senior, disabled, or who have Section 8 vouchers, may have been granted a waiver of the fee for their unit. When a waiver is in place, Rent Control does not bill you for the tenant’s unit, so there is nothing to pass through to them. In May, you should have received a list of tenants with current senior or disabled fee waivers.  

  4. Complete Part C: Allowable Surcharges (Lines 5a – 5g)

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    Certain property tax assessments have been authorized for pass-through to tenants as monthly surcharges. To pass through these assessments, use the 2022 property tax bill and provide a copy of it to the tenant. You may mark out portions of your tax bill for privacy, but the property address, tax amounts, and dates must be legible.  If you do not have the tax bill, you may pass through only the School District Parcel Tax (5c), because it is the same for every parcel—currently $471.93 on the 2022 tax bill.

    If the tenancy began on or after March 1, 2018 or if the property was sold or reassessed based upon major improvements on or after that date, surcharges may not be added to the maximum allowable rent.

    • Look at the property tax bill and identify the assessments identified below as 5a through 5e. The sample tax bill above shows how they appear on the bill. Enter the amounts from the tax bill on the corresponding lines under the column “Amount.”
    • Enter the total number of units on the property in the boxes provided (include units that are vacant or not rented). Divide the tax by the number of units and enter in the column “$ Annual Per Unit.” Then, divide the result by 12 (months). Enter the final result for each line under the column “$ Monthly Per Unit.”  Some low-income tenants may have a waiver of the tax on Line 5e, so nothing should be entered on the notice for those tenants. Divide the amount of this tax only by the number of units without the exemption. Add lines 5a – 5e and enter the total on Line 5f.
    • IMPORTANT!  Surcharge pass-throughs may not be higher than $35 or 4% of the 2023/2024 MAR. Calculate 4% of the MAR by multiplying the amount on Line 3 by 0.04 and enter the result on Line 5g. Then enter on Line ❺ either the amount on Line 5f, 5g or $35, whichever is less.

     

    Name on tax bill

    Where does it go on the Notice of Change in Terms of Tenancy form?

    COMMNTY COLLEGE

    Line 5a:  Community College Bond

    UNIFIED SCHOOLS

    Line 5b:  Unified Schools Bond

    SMMUSD–MEAS–R

    Line 5c:  School District Parcel Tax

    Owners who live on their property as their primary residence and are at least 65 by June 30 may request an exemption. If you have questions, call the Santa Monica–Malibu Unified School District, (310) 450-8338, ext. 70263.

    SM STRMH20 FEE

    Line 5d:  Stormwater Management User Fee

    SM CLN BEACH TAX

    Line 5e:  Clean Beaches & Ocean Parcel Tax

    Lower-income owners may request an exemption. To apply, contact Curtis Castle in Public Works by email to Curtis.Castle@santamonica.gov or call (310) 560-9364.

  5. Complete Part D: Maximum Lawful Rent

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    Add Lines ❸, ❹ and ❺ and enter the amount on the line in Part D.

  6. Print the Form, Sign it, and Serve It on Your Tenants

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    State law requires that you properly serve any notice of rent increase. Rent Control does not advise on what constitutes proper service.

    Please note - it is not necessary to file a copy of the Notice of Change in Terms of Tenancy with the Rent Control Office.

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