Being a landlord in Costa Mesa, California, comes with its own set of rewards and challenges. With nearly 60% of the city’s residents renting their homes, the rental market is robust, but it’s also tightly regulated. Local ordinances, combined with state laws, create a complex landscape that landlords must navigate to ensure compliance, maintain profitability, and foster good relationships with tenants. As of April 10, 2025, Costa Mesa has implemented several key ordinances that directly impact landlords, particularly around tenant protections, eviction processes, and property maintenance. This guide will break down these regulations, offer practical advice, and help you stay ahead of the curve in this dynamic rental environment.
Understanding Costa Mesa’s Rental Landscape
Costa Mesa, located in Orange County, is known for its vibrant community, proximity to beaches, and bustling commercial hubs like South Coast Plaza. With a population of over 110,000 and a high percentage of renters, the demand for rental properties is strong. However, this demand has also led to increased scrutiny from local government to protect tenants amid rising housing costs and eviction rates. In recent years, the city has taken steps to address these issues, most notably through the Just Cause Residential Tenant Protections Urgency Ordinance, adopted on November 7, 2023. This ordinance, along with others, shapes the responsibilities and rights of landlords today.
As a landlord, your success depends on understanding these rules, maintaining your property, and staying informed about updates to local policies. Let’s dive into the key ordinances you need to know and how to manage them effectively.
The Just Cause Tenant Protections Ordinance
One of the most significant regulations affecting Costa Mesa landlords is the Just Cause Residential Tenant Protections Urgency Ordinance. Enacted to curb unfair evictions, this law builds on California’s statewide Tenant Protection Act (AB 1482) but adds stricter local requirements. Here’s what it means for you:
Just Cause Evictions
Under this ordinance, you can only terminate a tenancy for specific “just cause” reasons, which are divided into two categories: “at-fault” and “no-fault.”
- At-Fault Just Cause: These include tenant behaviors like non-payment of rent, lease violations, or illegal activity on the property. For these evictions, you must provide clear documentation and follow proper notice procedures, but no additional financial assistance is required.
- No-Fault Just Cause: These are situations where the tenant isn’t at fault, such as when you intend to occupy the unit yourself (or a relative), withdraw the property from the rental market, or undertake substantial remodeling or demolition. No-fault evictions come with extra obligations.
No-Fault Eviction Requirements
If you’re evicting for a no-fault reason, the ordinance imposes the following:
- 60-Day Notice: Unlike the standard 30-day notice under state law, Costa Mesa requires a 60-day notice period for no-fault evictions.
- Relocation Assistance: You must provide relocation assistance equal to one month of Fair Market Rent (FMR), as set annually by the U.S. Department of Housing and Urban Development (HUD). For example, if the FMR for a one-bedroom unit in Orange County is $2,000, you’d owe the tenant that amount, payable within 15 days of issuing the eviction notice.
- City Notification: Within 72 hours of issuing the notice, you must submit a copy to the city at evictions@costamesaca.gov or via the Totally Electronic Self-Service Application (TESSA) portal. This ensures transparency and allows the city to monitor compliance.
- Documentation: For evictions tied to remodeling or demolition, you must provide tenants with detailed written notice, including a description of the work, estimated duration, and copies of permits or contracts. This prevents landlords from using false pretenses to evict and raise rents.
Practical Tips
- Document Everything: Keep meticulous records of notices, permits, and communications with tenants. If the city audits your eviction, you’ll need proof of compliance.
- Plan Ahead: The 60-day notice and relocation costs can delay your plans, so budget and schedule accordingly.
- Verify FMR: Check HUD’s latest FMR data for Orange County to ensure you’re paying the correct amount. Overpaying or underpaying can lead to disputes.
Property Maintenance and Code Enforcement
Beyond eviction rules, Costa Mesa enforces strict property maintenance standards under Title 20 of its Municipal Code. As a landlord, you’re responsible for keeping your rental units safe, habitable, and compliant with local codes. Here’s what to focus on:
Key Maintenance Standards
- Health and Safety: Units must meet California Health and Safety Code requirements, including proper ventilation, heating, plumbing, and electrical systems. Substandard conditions like mold, pest infestations, or broken windows can trigger code enforcement actions.
- Exterior Upkeep: Title 20 also covers exterior maintenance, such as managing overgrown weeds, storing vehicles properly, and avoiding nuisances like excessive noise from construction or equipment.
- Permits for Repairs: Major repairs or renovations require building permits. The city’s Building Safety Division, reachable at (714) 754-5273 or buildingpermit@costamesaca.gov, oversees this process through the TESSA portal.
Enforcement and Penalties
The Community Improvement Division investigates violations, often prompted by tenant complaints or city inspections. If a violation is confirmed, you could face:
- Fines up to $1,000 per day.
- Criminal charges or nuisance abatement actions in severe cases.
Practical Tips
- Routine Inspections: Conduct regular checks to catch issues early. Tenants may not report problems until they escalate.
- Respond Promptly: Address tenant maintenance requests quickly to avoid code complaints. Use the Costa Mesa Connect app to track city-reported issues like potholes or graffiti near your property.
- Know the Process: If you receive a violation notice, contact the assigned code officer (listed on the notice) or the duty desk at (714) 754-5638 for clarification.
Short-Term Rental Ban
If you’re considering converting your property into a short-term rental (STR) like an Airbnb, think again. Costa Mesa banned all STRs in residential zones under Ordinance 2021-17, effective November 2, 2021. This applies to rentals of less than 31 days, whether through platforms like Airbnb or direct bookings.
Key Details
- Scope: The ban covers entire homes, shared spaces, and even Accessory Dwelling Units (ADUs), which are restricted from short-term use.
- Exemptions: Limited “owner-adjacent” home sharing (where the host lives on-site) is allowed, but still tightly regulated.
- Penalties: Violations can result in fines up to $1,000 per day, plus potential criminal charges.
Practical Tips
- Explore Long-Term Rentals: With STRs off the table, focus on long-term leases to maximize income while staying compliant.
- Stay Informed: The city council has hinted at revisiting STR regulations, so monitor updates if you’re interested in this market.
Affordable Housing Ordinance
Adopted on August 6, 2024, Costa Mesa’s Affordable Housing Ordinance encourages developers to include affordable units in new projects. While this primarily affects large-scale developers, it indirectly impacts landlords by increasing the supply of affordable rentals, potentially affecting market rates.
Implications for Landlords
- Competition: More affordable units could pressure you to keep rents competitive.
- Tenant Demographics: You may see more low-income tenants applying, requiring familiarity with fair housing laws.
Practical Tips
- Fair Housing Compliance: Ensure your screening and leasing practices comply with federal and state anti-discrimination laws.
- Market Research: Monitor rental trends to adjust pricing strategically.
Navigating Tenant Relationships
Local ordinances emphasize tenant protections, but fostering positive relationships can reduce conflicts and legal headaches. Here’s how:
- Clear Communication: Provide tenants with written lease terms, maintenance policies, and eviction procedures upfront.
- Legal Support: The city allocates funds for tenant legal services, so be prepared for well-informed renters. Consider consulting a landlord-tenant attorney for complex issues.
- Resources: Direct tenants or yourself to evictions@costamesaca.gov for ordinance-related questions.
Staying Ahead in 2025
Costa Mesa’s landlord regulations are evolving, reflecting broader housing trends in California. To thrive:
- Stay Updated: Check the city’s website (www.costamesaca.gov) or subscribe to newsletters for ordinance changes.
- Leverage Technology: Use TESSA for permits and eviction filings, and Costa Mesa Connect for reporting issues.
- Balance Costs: Factor relocation assistance and maintenance into your budget to avoid surprises.
Navigating Costa Mesa’s local ordinances requires diligence, but it’s manageable with the right approach. By understanding the Just Cause Ordinance, maintaining your property, respecting the STR ban, and adapting to affordable housing shifts, you can operate successfully while keeping tenants and the city satisfied. The rental market here is competitive, but it’s also full of opportunity for those willing to play by the rules.
