What Is the Ellis Act, and Could It Apply to a Small Manhattan Beach Rental in 2026?

Published July 15, 2026

The Ellis Act lets landlords exit the rental business, but for most small Manhattan Beach rentals AB 1482's no-fault rules matter more.

The Ellis Act (Government Code sections 7060 through 7060.7) lets any landlord withdraw an entire property from the rental market and end all tenancies, on 120 days notice, extended to one year for a tenant who is 62 or older or disabled, has lived in the unit at least a year, and gives the landlord written notice of that entitlement within 60 days (Government Code section 7060.4(b)). It was written to override local rent control ordinances, so for a small Manhattan Beach rental, which has no local rent control ordinance, the Ellis Act is rarely the tool that actually applies. The rule that usually governs instead is the statewide Tenant Protection Act, Civil Code section 1946.2.

Where the Ellis Act actually matters

The Ellis Act was adopted in 1985 after the California Supreme Court held, in Nash v. City of Santa Monica, that a city could refuse to let a landlord exit the rental business at all under a strict rent control ordinance. The Legislature responded by guaranteeing every landlord the right to go out of business and stop renting, regardless of what a local ordinance says. Where the Ellis Act shows up in practice is in cities with real rent stabilization, such as Los Angeles, Santa Monica, or Berkeley, where a landlord otherwise could not simply decide to sell or convert a rent-controlled building without the city fighting to keep units on the rental rolls. Manhattan Beach has no such ordinance, so a landlord there does not need the Ellis Act's override power to stop renting a unit.

What actually governs a small Manhattan Beach rental

Most small Manhattan Beach rentals, especially a single-family home or a condo, fall under one of two categories:

1. Exempt from Civil Code section 1946.2 entirely. Subsection (e)(8) exempts a single-family home or condo that is separately alienable from other units, as long as the owner is not a real estate investment trust, a corporation, or an LLC with a corporate member, and the owner has given the tenant written notice that the property is exempt from the statewide rent cap and just cause rules. For agreements signed on or after July 1, 2020, that exemption notice must be in the lease itself.
2. Covered by Civil Code section 1946.2, if the property does not qualify for that exemption, for example if it is owned through a corporate entity, or is a multi-unit building.

If the property is covered, ending a tenancy to take a unit off the market, sell it, move in a qualifying family member, or do a substantial remodel are all treated as "no fault" terminations. The statute requires the owner to pay the tenant relocation assistance, or waive the final month's rent, equal to one month of the tenant's rent in effect when the notice was served, and that assistance has to reach the tenant within 15 calendar days of serving the notice. Skipping that payment does not just expose the owner to damages, it can void the termination notice outright.

Where the Ellis Act and AB 1482 overlap

Withdrawing a property from the rental market is listed as a no-fault reason under both frameworks. So if a Manhattan Beach owner is not exempt and wants to stop renting a covered unit altogether, the relocation assistance and notice obligations run through Civil Code section 1946.2, not through the Ellis Act's public entity filing process, which was built for jurisdictions with their own rent boards. There is no reason for a small non-exempt owner in Manhattan Beach to invoke the Ellis Act by name. The state no-fault rules already provide the path.

What this means for you

Before assuming you need Ellis Act protections, check two things: whether your unit actually qualifies for the single-family or condo exemption under section 1946.2(e)(8), and whether your lease already contains the required exemption notice. If it does, ending the tenancy is simpler and does not trigger the relocation assistance requirement. If it does not qualify, budget for one month's rent in relocation assistance, pay it within 15 days of the notice, and keep proof of payment, because a missed or late payment can invalidate the notice and restart the clock.

If you would rather have someone else track which exemption applies to your property before you serve a notice, that is what we do at Schofield.

This is general information, not legal or tax advice. Confirm with a licensed professional before you act.

Sources

1. California Government Code section 7060 (Ellis Act, withdrawal from rental market): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=7060.&lawCode=GOV
2. California Government Code section 7060.4 (notice periods, extended notice for elderly/disabled tenants): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=7060.4.&lawCode=GOV
3. California Civil Code section 1946.2 (Tenant Protection Act of 2019, no-fault just cause and relocation assistance): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=1946.2.&lawCode=CIV
4. Nash v. City of Santa Monica, 37 Cal.3d 97 (1984): https://law.justia.com/cases/california/supreme-court/3d/37/97.html
5. California Civil Code section 1946.2, subsection (e) exemptions (single-family homes and condos): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=1946.2.&lawCode=CIV&article=

Last verified: July 2026.

Topics: compliance, Ellis Act, AB 1482, Manhattan Beach, no fault eviction

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