Morro Bay · Renting & eviction
Renting in Morro Bay: the rules that apply
Morro Bay's Mobilehome and Recreational Vehicle Park Rent Stabilization chapter covers mobilehome and RV park spaces only; for other rentals, the state rent cap applies to covered units only. The city has no just-cause, relocation or notice rule of its own.
Key points
- Rent increases: Morro Bay's park rent stabilization chapter covers mobilehome and RV park spaces only; state law caps other covered units at 8.6%.
- Just cause: State law: after 12 months of lawful occupancy, the owner of a covered unit may end the tenancy only for a just cause.
- Ending a tenancy: State law: a landlord gives 60 days' notice to end a tenancy, or 30 days if the tenant has lived there under 1 year.
- Relocation pay: State law: for no-fault evictions from covered units, the tenant gets 1 month's rent within 15 calendar days of the notice.
- Security deposits: State law: a deposit is at most 1 month's rent, or 2 for qualifying small landlords, returned within 21 days of move-out.
- Retaliation: Morro Bay's park rent rules: mobilehome/RV spaces only. State law: 180-day retaliation ban after habitability complaints if current on rent, once per 12 months.
Each rule below is marked Morro Bay code or CA state law and links to the section it comes from (extracted October 2026). General information, not legal advice.
Rent increases
Morro Bay has a related local rule: Mobilehome and Recreational Vehicle Park Rent Stabilization (Ch. 5.32); Morro Bay Mobile Home Parks Rent Control: 2027 Increase Limits (city guidance) — mobilehome and RV park spaces only. This page does not summarize it yet; read the text in the library. Where it does not apply, the state rule below does.
| Rent cap right now | 8.6% for increases taking effect August 1, 2026 through July 31, 2027 (5% plus 3.6% inflation) Applies: Covered units only. Inflation is the California consumer price index (Department of Industrial Relations), used for counties outside the four metro areas, April to April, as the statute requires; the figure is recomputed every year. |
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| Statewide rent increase cap (AB 1482) | 5% plus the change in cost of living, or 10%, whichever is lower, over any 12 months Applies: Covered units only; measured against the lowest rent charged in the prior 12 months. |
| Number of rent increases | No more than two increases in any 12-month period |
| Rent cap — new construction exemption | Housing with a certificate of occupancy issued within the previous 15 years is exempt (rolling) Applies: Mobilehomes excepted. |
| Rent cap — single-family home or condo exemption | A home or condo that can be sold on its own is exempt when the owner is not a REIT, a corporation or an LLC with a corporate member, and the tenant was given the written exemption notice Applies: The same exemption applies to the just-cause rule (§ 1946.2(e)(8)). |
| Rent cap — owner-occupied duplex exemption | A duplex in one building is exempt when the owner lived in the other unit at the start of the tenancy and still does, unless either unit is an ADU or JADU |
| New tenancy resets the rent | When no prior tenant remains, the owner may set the initial rent; the cap applies to later increases |
| Rent cap sunset | § 1947.12 is repealed on January 1, 2030 unless extended |
Eviction and just cause
CA state law Morro Bay has no rule of its own on this, so California law applies. Just cause required: After 12 months of lawful occupancy, the owner may terminate only for a just cause stated in the notice (Civ. Code § 1946.2(a)). Just-cause eviction in California — the full state rule →
Relocation payments
CA state law Morro Bay has no rule of its own on this, so California law applies. No-fault eviction relocation assistance: One month's rent (as relocation payment or rent waiver), paid within 15 calendar days of the notice (Civ. Code § 1946.2(d)(3)(A)). Relocation under California's just-cause law — the full state rule →
Notices
We found no Morro Bay rule on this in the Morro Bay Municipal Code (extracted October 2026). The state rule below applies.
| Notice of a rent increase | At least 30 days' notice for an increase of 10% or less; at least 90 days for an increase of more than 10% Applies: The 10% is measured against the rent charged at any time in the 12 months before the increase, counting all increases in that period together. |
|---|---|
| Notice to end a month-to-month tenancy (landlord) | 60 days' notice; 30 days if the tenant has lived there less than one year Applies: Where the unit is covered by just cause (Civ. Code § 1946.2) or a local ordinance, the notice must also state a qualifying cause. |
| Notice to end a month-to-month tenancy (tenant) | At least as long as the rental period (one month for a month-to-month tenancy) |
| 30-day notice when the unit is sold to an owner-occupant | 30 days' notice when a separately sellable unit is in escrow to a natural person who will live there for at least a year Applies: Notice within 120 days of opening escrow, given once, and all § 1946.1(d) conditions met. |
| Notice to pay rent or quit | 3 days, not counting Saturdays, Sundays and judicial holidays, stating the amount due and how to pay Applies: May be served any time within one year after the rent became due. |
| Notice to cure a lease violation or quit | 3 days, not counting Saturdays, Sundays and judicial holidays, to perform the broken lease term or leave |
| No fee for serving notices | A landlord may not charge the tenant a fee for serving or posting a notice |
Security deposits
CA state law Morro Bay has no rule of its own on this, so California law applies. Security deposit cap: One month's rent, on top of the first month's rent (Civ. Code § 1950.5(c)(1), (c)(6)). Deposit return deadline: 21 calendar days after the tenant moves out, with an itemized statement of any deductions (Civ. Code § 1950.5(h)(1)). California security deposit law — the full state rule →
Retaliation
Morro Bay has a related local rule: Mobilehome and Recreational Vehicle Park Rent Stabilization (§ 5.32.140) — mobilehome and RV park spaces only. This page does not summarize it yet; read the text in the library. Where it does not apply, the state rule below does.
| Retaliation protection period | For 180 days after a tenant complains about habitability (to the landlord or an agency), the landlord may not evict, raise rent or cut services in retaliation Applies: The tenant must not be in default on rent, and may invoke this no more than once in any 12-month period. A landlord who states a good-faith ground in the notice may still act. |
|---|---|
| Retaliation damages | Actual damages plus punitive damages of $100 to $2,000 per retaliatory act (fraud, oppression or malice) |
Harassment and lockouts
CA state law Morro Bay has no rule of its own on this, so California law applies. Lockouts and self-help eviction banned: A landlord may not change locks, remove doors or windows, or remove the tenant's belongings to force a tenant out (Civ. Code § 789.3(b)). Utility shutoffs banned: A landlord may not cut off water, heat, electricity, gas or other utilities to force a tenant out (Civ. Code § 789.3(a)). Tenant harassment and lockouts in California — the full state rule →
Repairs and habitability
CA state law Morro Bay has no rule of its own on this, so California law applies. Duty to keep the unit habitable: The landlord must deliver a unit fit to live in and repair conditions that make it untenantable (Civ. Code § 1941). Repair and deduct: A tenant may make a repair the landlord neglects and deduct the cost from rent, up to one month's rent, no more than twice in any 12 months (Civ. Code § 1942(a)). Habitability and repair-and-deduct — the full state rule →
Landlord entry
CA state law Morro Bay has no rule of its own on this, so California law applies. Landlord entry notice: Reasonable written notice, presumed to be 24 hours, and entry only during normal business hours (Civ. Code § 1954(d)(1), (e)). Landlord entry notice in California — the full state rule →
Short-term rentals
| Allowed |
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| Permit or registration |
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| Primary residence |
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Hotel and short-term rental tax
| Tax rate |
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| Who collects it |
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Condo conversions
| Relocation help |
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| Notice to tenants |
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| Tenants' right to buy |
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Other Morro Bay rules on this
Morro Bay's code also has these chapters. We have not summarized their values on this page yet; read them in the library.
- Mobilehome and Recreational Vehicle Park Rent Stabilization (Ch. 5.32) — mobilehome and RV park spaces only
- Morro Bay Mobile Home Parks Rent Control: 2027 Increase Limits (city guidance) — mobile home park spaces only
- Mobilehome and Recreational Vehicle Park Rent Stabilization (§ 5.32.140) — mobilehome and RV park spaces only
Who this affects
Frequently asked questions
How much can rent go up in Morro Bay?
Morro Bay's park rent stabilization chapter covers mobilehome and RV park spaces only; state law caps other covered units at 8.6%. Morro Bay also has a related rule: Mobilehome and Recreational Vehicle Park Rent Stabilization (Ch. 5.32) — mobilehome and RV park spaces only; Morro Bay Mobile Home Parks Rent Control: 2027 Increase Limits (city guidance) — mobile home park spaces only.
Does a landlord in Morro Bay need a reason to evict?
State law: after 12 months of lawful occupancy, the owner of a covered unit may end the tenancy only for a just cause.
Does a Morro Bay landlord have to pay relocation?
State law: for no-fault evictions from covered units, the tenant gets 1 month's rent within 15 calendar days of the notice.
How much notice does a Morro Bay landlord have to give?
State law: a landlord gives 60 days' notice to end a tenancy, or 30 days if the tenant has lived there under 1 year.
How much can a Morro Bay landlord charge for a security deposit?
State law: a deposit is at most 1 month's rent, or 2 for qualifying small landlords, returned within 21 days of move-out.
Can I rent out my home short-term in Morro Bay?
Morro Bay's code: Yes. Home-sharing and full-home rentals are allowed with a permit. (Residential, commercial and mixed use zones only; full-home rentals in residential zones capped at 175; not in ADUs, mobile home parks or affordable housing units.) (§ 17.30.220); A short-term vacation rental permit and a city business license. (All short-term vacation rentals; the property owner gets the permit, valid for no more than 12 months unless renewed.) (§ 17.30.220).
What is the hotel tax on short-term rentals in Morro Bay?
Morro Bay's code: 10% of the rent. (§ 3.24.030); The operator collects the tax from each guest at the same time as the rent. (§ 3.24.050).
What happens to tenants when a Morro Bay building converts to condos?
Morro Bay's code: The developer pays all reasonable relocation costs, up to 2 times the latest monthly rent. (When comparable rentals exist in the area or city, or the tenant finds housing in the city without the developer's help.) (§ 16.48.070); All reasonable moving expenses, up to 2 times the latest monthly rent. (When comparable rentals are not available in the area or Morro Bay, or the tenant chooses to move outside Morro Bay.) (§ 16.48.070).
General information, not legal advice.
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