Costa Mesa, a vibrant city in Orange County, California, is known for its proximity to stunning beaches, thriving arts scene, and bustling commercial hubs like South Coast Plaza. Whether you’re a tenant searching for a rental property or a landlord looking to lease out your home, understanding the local rental laws and regulations is crucial. These rules govern everything from long-term leases to eviction procedures and even short-term rental restrictions. As of April 9, 2025, this guide will break down the key aspects of Costa Mesa’s rental landscape, offering clarity on state and local laws that impact both renters and property owners.
The Foundation: California State Rental Laws
Before diving into Costa Mesa-specific regulations, it’s important to recognize that all rental agreements in the city are subject to California state laws. These laws provide a baseline for tenant and landlord rights and responsibilities, which local ordinances can build upon or modify. Here are some key state-level regulations that apply:
- Rent Control and Increases: California’s Tenant Protection Act of 2019 (AB 1482) caps annual rent increases at 5% plus the regional Consumer Price Index (CPI), with a maximum of 10%. This applies to most rental properties over 15 years old, though exemptions exist for newer constructions and single-family homes not owned by corporations. While Costa Mesa has not implemented its own rent control ordinance as of April 2025, tenants in qualifying properties benefit from this statewide protection.
- Security Deposits: California law limits security deposits to two months’ rent for unfurnished units and three months’ rent for furnished ones. Landlords must return the deposit (minus lawful deductions) within 21 days of a tenant vacating the property, along with an itemized statement of any deductions.
- Eviction Rules: The state requires “just cause” for evictions under AB 1482, meaning landlords can only terminate a tenancy for specific reasons, such as non-payment of rent or lease violations. For “no-fault” evictions (e.g., the landlord wants to move in), relocation assistance may be required.
- Habitability Standards: Landlords must maintain rental units in a habitable condition, ensuring working plumbing, heating, electricity, and protection from weather elements. Tenants can request repairs, and in some cases, withhold rent if essential fixes are neglected (after proper notice).
These state laws set the stage, but Costa Mesa has its own local ordinances that add layers of complexity—particularly when it comes to short-term rentals and tenant protections.
Costa Mesa’s Local Rental Regulations
Costa Mesa’s city government has tailored its rental policies to address local concerns, such as housing availability, neighborhood quality of life, and economic impacts. Below are the most significant local regulations as of April 2025:
1. Ban on Short-Term Rentals (STRs)
One of the most notable aspects of Costa Mesa’s rental laws is its strict prohibition on short-term rentals (STRs). In November 2021, the Costa Mesa City Council passed Ordinance 2021-17, banning all STRs—defined as rentals of residential properties for less than 31 days—within city limits. This includes platforms like Airbnb and VRBO. The ordinance was initially enacted as an urgency measure following resident complaints about noise, parking issues, and party houses disrupting family neighborhoods.
- Scope of the Ban: The prohibition applies citywide, covering both hosted rentals (where the owner lives on-site) and unhosted ones. Even Accessory Dwelling Units (ADUs) are subject to a land use restriction preventing rentals shorter than 31 days.
- Enforcement: The city enforces this ban rigorously through its Community Improvement Division. Violations can result in fines of up to $1,000 per day, criminal charges, or nuisance abatement actions. Residents can report suspected illegal STRs via the MYCOSTAMESA portal.
- Future Outlook: While the ban remains in effect as of April 2025, the City Council has expressed intentions to revisit the issue and potentially develop a permitting system. However, no concrete timeline or framework has been established, leaving STR operators in limbo.
For landlords hoping to generate income through short-term rentals, this ban poses a significant hurdle. Nearby cities like Newport Beach offer regulated STR options, but within Costa Mesa, long-term leasing is currently the only legal avenue.
2. Just Cause Tenant Protections
On November 7, 2023, Costa Mesa adopted its own Just Cause Residential Tenant Protections Urgency Ordinance, enhancing state-level eviction safeguards. This local ordinance aligns with California’s just cause requirements but adds specific provisions:
- Termination Notices: Landlords must provide a written notice specifying the just cause for eviction (e.g., non-payment of rent, substantial lease breaches, or intent to demolish/remodel the unit). Additional documentation verifying the reason must accompany the notice.
- Relocation Assistance: For “no-fault” evictions, such as when a landlord intends to withdraw the property from the rental market or substantially remodel it, tenants are entitled to relocation assistance. This amounts to one month of Fair Market Rent (FMR) as set by the U.S. Department of Housing and Urban Development, or a waiver of the final month’s rent plus a payment to cover any difference if FMR exceeds the current rent.
- Submission Requirements: Landlords must submit a copy of the termination notice to the city via email (evictions@costamesaca.gov) or the Totally Electronic Self-Service Application (TESSA) system.
This ordinance reflects Costa Mesa’s commitment to protecting tenants, particularly in a city where renters make up roughly 60% of residents and rising costs have sparked displacement concerns.
3. Noise and Nuisance Regulations
Costa Mesa enforces strict rules to maintain neighborhood peace, which indirectly affect rental properties. Noise from construction, mechanical equipment, or tenant activities deemed a “general nuisance” can lead to fines or legal action. Landlords may face liability if their tenants consistently violate these standards, emphasizing the importance of screening renters and addressing complaints promptly.
Practical Implications for Tenants
If you’re renting in Costa Mesa, here’s what you need to know to navigate the local landscape:
- Long-Term Leases Only: Don’t expect to find legal short-term rentals like Airbnb within city limits. If you’re a transient worker or student needing flexibility, consider nearby cities or negotiate a month-to-month lease with a landlord.
- Eviction Protections: You’re shielded by both state and local just cause laws. If you receive an eviction notice, verify it includes a valid reason and required documentation. Contact the city if you suspect non-compliance.
- Rent Increase Caps: Check if your rental qualifies under AB 1482. If it does, your landlord can’t raise rent beyond the state cap without justification. Costa Mesa hasn’t imposed stricter local caps, but advocacy groups continue to push for rent stabilization.
- Habitability Issues: Document any maintenance problems and notify your landlord in writing. If repairs aren’t made, California law allows options like “repair and deduct” (after proper notice), though escalation to the city may be necessary for enforcement.
Tenants should also be aware of rental assistance programs. As of mid-2022, Costa Mesa had funds available from COVID-19 block grants for low-income residents, though the status of these programs in 2025 would depend on ongoing funding.
Practical Implications for Landlords
For property owners in Costa Mesa, compliance with these laws is essential to avoid penalties and maintain profitable operations:
- No STR Income: If you planned to use your property for short-term rentals, you’ll need to pivot to long-term tenants or explore opportunities in neighboring cities. Operating an illegal STR risks steep fines and legal action.
- Eviction Process: Follow the just cause ordinance meticulously—provide detailed notices and submit them to the city. For no-fault evictions, budget for relocation assistance, which varies annually based on HUD’s FMR calculations.
- Property Maintenance: Stay proactive about repairs to meet habitability standards and avoid tenant disputes. Noise complaints from neighbors could also lead to scrutiny, so include clear conduct clauses in your lease agreements.
- Stay Informed: Monitor City Council meetings for updates on potential STR regulations. While the ban persists, future permitting could open new revenue streams if structured thoughtfully.
Landlords should also consider joining local property owner associations or consulting legal experts to stay ahead of regulatory changes.
The Bigger Picture: Why These Laws Matter
Costa Mesa’s rental regulations reflect a balancing act between preserving housing stock, protecting tenant rights, and addressing community concerns. The STR ban, for instance, stems from resident frustrations over party houses and parking shortages—issues exacerbated during the pandemic when complaints spiked. Meanwhile, tenant protections respond to a growing affordability crisis, with Latino renters and advocacy groups like Resilience Orange County urging stronger measures like rent control.
Critically examining these policies reveals trade-offs. The STR ban safeguards neighborhood character but limits property owners’ flexibility, potentially driving investment elsewhere. Tenant protections reduce displacement risks but may discourage landlords from renting if compliance feels burdensome. As Costa Mesa evolves, these tensions will shape future debates—especially if the city revisits STR permitting or considers rent stabilization.
Tips for Navigating Costa Mesa’s Rental Market
- For Tenants: Research your rights under state and local laws, document all communications with your landlord, and explore nearby cities if Costa Mesa’s options don’t fit your needs.
- For Landlords: Ensure your lease agreements align with current regulations, maintain open communication with tenants, and participate in local government discussions to influence future policies.
- For Both: Stay updated via the City of Costa Mesa website (www.costamesaca.gov) or community forums, as laws can shift with new ordinances or council decisions.
Conclusion
Understanding Costa Mesa’s rental laws and regulations requires navigating a blend of state mandates and local ordinances. From the outright ban on short-term rentals to enhanced eviction protections, these rules shape the rental experience for tenants and landlords alike. As of April 9, 2025, the city remains a long-term rental market with strong tenant safeguards, but its policies could evolve with community input and council action. Whether you’re settling into a cozy Eastside apartment or managing a Westside property, staying informed is your best tool for thriving in this dynamic rental landscape.
Have questions about a specific regulation or need clarification? Feel free to ask—I’m here to help you unpack the details!
