What is a rental inventory?

    A rental inventory is a database of information about residential rentals in the City of Monterey.

    What information will be collected as part of the rental inventory?

    1. The name, address, and phone number of the Landlord, including any on-site or off-site property manager or property management company.
    2. The street address and/or Assessor’s Parcel Number (APN) of each Rental Unit for rent or lease.
    3. The year the property was built and the number of Rental Units on the property.
    4. The number of bedrooms and bathrooms in each Rental Unit, including square footage, for rent or lease.
    5. The occupancy status of each Rental Unit (e.g., vacant or occupied) and reason for vacancy, if applicable.
    6. For each occupied Rental Unit, the current amount and date of the monthly rent received for each Rental Unit, identifying whether the monthly rent includes Utility Charges and/or Housing Service Charges.
    7. For a Rental Unit in a condominium or other common interest development, the amount of the homeowners’ association fees, regular and/or special assessments, or other similar charges paid to an association.
    8. Whether or not the Tenant receives a housing voucher or other rental subsidy.
    9. Any other information deemed necessary by the Community Development Director to implement the provisions of this ordinance.

    What is the purpose of a rental inventory?

    The purpose is to:  

    1. Allow the City to collect, monitor and analyze the characteristics of the rental units and actual rents in Monterey.
    2. Provide data to the City Council to inform future policy decisions about the regulation of the rental market in Monterey.
    3. Identify instances where substandard living conditions may exist and determine potential policy remedies.

    Are rent control measures being considered as part of this ordinance?

    No. This ordinance pertains only to a rental inventory in the City of Monterey. Rent control measures are not currently being considered.

    What types of rentals are impacted by this ordinance?

    The ordinance defines a "Rental Unit” as a habitable structure offered for Rent and used as a place of permanent or customary and usual abode of a Tenant. Rental Unit includes a room in dwelling unit that is shared with the Landlord, a single-family residence, an accessory dwelling unit, a junior accessory dwelling unit, a condominium or other unit in a common interest development, a mobile home or manufactured home, a building, a group of buildings or portion of a building used and/or designed as dwellings.  

    A Rental Unit shall not include: housing accommodations in a visitor accommodation facility, group housing, supportive housing, transitional housing, general residential care and bed and breakfasts as those terms are defined or used in the City’s Zoning Ordinance.

    When could landlords start uploading their information into the database?

    The draft ordinance calls for landlords to register residential rental units from January 1, 2024 to March 1, 2024.

    How much will the rental inventory cost to the landlord, the tenant, and the City?

    The cost for participating in the rental inventory will be tied directly to the cost of operations - $55k first year cost for software, $30k annual software cost thereafter, and an estimated $400k total annual operating cost (staffing, operations, software, etc.).

    A fee schedule for the rental inventory will be finalized prior to the registration window opening on January 1, 2024.

    Are any units exempt from registration fees?

    Currently, ADUs, JADUs, owner-occupied units, subsidized units, and mobile homes will be exempt from registration fees.

    Will registration fees be passed through to tenants?

    Currently 50% of fees are permitted to be passed through to tenants.

    What are the potential penalties for failing to register my rental property?

    A 10% fee will be assessed 30 days after the fee due date. An additional 10% fee will be assessed for each subsequent 30-day period of noncompliance after that. An administrative citation will be assessed after 180 days of noncompliance.

    What are potential benefits of a rental inventory?

    Potential benefits include:

    1. A rental inventory can benefit both landlords/property owners and tenants. For property owners, the inventory can provide a platform to demonstrate compliance with regulations, maintain a record of property ownership, and create a level playing field in the rental market. Tenants can benefit from increased accountability from landlords and property owners, and the ability to access information about their rental units. The rental inventory will foster a fair and transparent rental market that benefits all stakeholders.
    2. A rental inventory can help the City ensure compliance with housing standards, safety regulations, business licenses, and all other local regulations.
    3. Property owners are always guaranteed a fair return on investment by CA Constitution, and a rental inventory may allow them to verify they are receiving that fair return.
    4. The software utilized for the rental inventory may provide independent, individual property owners enough information to manage their properties online.
    5. A rental inventory may provide the City with accurate and up to date information on market trends and legal disputes between property owners and tenants, allowing policymakers to make better informed decisions regarding affordability and legal protections in the future.
    6. A rental inventory may provide material assistance to all parties in dispute resolution with the potential for providing an official record and copies of all documents related to the property, including lease agreements, property details, and petitions.
    7. A rental inventory may allow for tenants and landlords to submit petitions online, potentially including petitions related to maintenance requests, eviction notices, rent increases, and more.
    8. A rental inventory generally provides greater transparency with local authorities, fewer unfair rental practices, and fewer non-compliant properties.
    9. A rental inventory provides the City the ability to identify properties being used for illegal activities such as illegal short-term rentals, substandard living conditions, or zoning violations.