It’s important to be well-informed about the specific regulations in each locality to ensure compliance and a smooth rental process. Here’s a comprehensive breakdown of the short-term rental rules in various cities within Santa Cruz County:
City of Santa Cruz
Short-Term Rental (STR) Permits
The City’s Residential STR Ordinance (Chapter 24.12, Part 18 of City’s Municipal Code) is in effect.
All owners of STR units are required to obtain a STR permit and Transient Occupancy Tax (TOT) Certificate to use their property for STR purposes. A total of 250 owner-occupied/hosted STR permits are available on a first come, first served basis. There is currently no waitlist for hosted STR permits; the City is actively taking in STR permit applications.
Properties with a single-family home and an Accessory Dwelling Unit (ADU) are not approved to receive an STR permit for either the single-family home or the ADU. Multi-family properties may be eligible to receive an STR Permit; please contact the staff member at the bottom of this page for more information.
What is the Short Term Rental Ordinance?
The Short-Term Rental Ordinance provides a set of standards governing the renting or leasing of residential property on a short-term basis. The intent of the Ordinance is to allow short-term rental of residential properties within the City while protecting the City’s long-term housing stock. The Ordinance also ensures that Short-Term Rentals do not become a nuisance to the community, or threaten the public’s health, safety or welfare. The Ordinance requires the issuance of a Residential Short-Term Rental Permit before a homeowner may operate an STR.
Am I Eligible to Apply for an STR Permit?
The City is not issuing new Non-Hosted/non-owner occupied STR permits or Accessory Dwelling Unit STR permits.
The Ordinance distinguishes between HOSTED and NON-HOSTED STRs, as follows:
HOSTED STRs
HOSTED is defined as an STR where the owner lives in the home for more than 6 months per year, although the owner does not need to be present during the STR guests’ stay. For eligible multi-family properties, the owner needs to live in one of the homes for more than 6 months per year.
NON-HOSTED STRs
NON-HOSTED is defined as an STR where the owner does not live in the home or lives in the home for less than 6 months per year.
The City will not be issuing new Non-Hosted STR permits. However, there are several existing, legally permitted and operating Non-Hosted STRs that will be allowed to continue under the ordinance.
Capitola
Vacation Rental Rules and Regulations
What is a Vacation Rental?
A vacation rental is a residential home or portion of a home that is rented for less than 30 days (Section 17.160.020)
They are also referred to as “short-term rentals” or “transient rental uses”.
Can My Home be a Vacation Rental?
The answer to this question all depends on location. The City of Capitola has established an area (the VRU or Vacation Rental Use overlay district) where vacation rentals may be operated. If your home is located within this area your property may be operated as a vacation rental. This area consists of the Capitola Village, Riverview Avenue as far north as city hall, as far west as Cliff Drive, as far east as Monterey Avenue, and as far south as Capitola Beach, as shown in the VRU Map.
What If My Home Is Not Located In The Vacation Rental Area (VRU)?
Homes located outside this area may NOT be rented as vacation rentals. Homes outside the VRU may only be operated as “Long-term Rentals”. Long-term Rentals must be rented for 30 nights or more.
https://www.cityofcapitola.org/communitydevelopment/page/vacation-rental-rules-and-regulations
For more comprehensive details and updates, you can visit the local city websites or Santa Cruz County’s planning department pages linked above. Regulations are subject to change, so checking the latest information before proceeding is always a good idea.
Santa Cruz County Unincorporated Areas
Aptos | Ben Lomond | Bonny Doon | Boulder Creek | Brookdale | Corralitos | Davenport | Felton | Freedom| La Selva Beach Designated Area (SALSDA) | Rio Del Mar | Swanton Designated Area (DASDA) | Soquel | Live Oak Designated Area (LODA)
La Selva Beach Designated Area (SALSDA), Swanton Designated Area (DASDA) and Live Oak Designated Area (LODA) have a waiting list, see below
Unincorporated areas are communities and areas that are not within the jurisdictional boundaries of incorporated cities. This means they are not serviced by an incorporated city. In Santa Cruz County, unincorporated areas include all areas outside the city limits of Capitola, Santa Cruz, Watsonville, and Scotts Valley.
Santa Cruz County
Wait List Requests
The County maintains a Wait List for Vacation Rental and Hosted Rentals permits in the three Designated Areas (LODA, SALSDA, and DASDA). Permits will be issued on a first-applied, first-issued system, with evaluation of permit availability occurring on a bi-annual basis (June 1st and December 1st). There is a $145.00 annual Wait List fee to maintain a space on the List.
To submit a Wait List Request, please complete the Wait List Form and email it to: vacation.eplanreview@santacruzcountyca.gov for review and signature. Applications will not be accepted without signature. Following receipt of signature, please drop off the completed form with the cashier during Unified Permit Center Counter business hours, or mail it, along with the annual Wait List Fee ($145.00 check made out to the County of Santa Cruz) to:
County of Santa Cruz CDI, Unified Permit Center
Attn: Vacation Rental Processing
701 Ocean Street, Room 400
Santa Cruz, CA 95060
To check your placement on the most up-to-date Wait List, you may view the current Wait List.
Santa Cruz County, CA (Unincorporated Areas)
When deciding whether to become an Airbnb host, it is important for you to understand the laws in your city or county. As a platform and marketplace, we do not provide legal advice, but we want to give you some useful links that may better help you understand relevant laws and regulations in Santa Cruz County. This list is not exhaustive, but it should give you a good start in understanding your local laws. If you have questions, contact the Santa Cruz County Planning Department, or consult a local lawyer or tax professional.
- Where do you live? The information on this page is specific to unincorporated Santa Cruz County. Different rules may apply to incorporated cities within Santa Cruz County (cities of Santa Cruz, Scotts Valley, Capitola, and Watsonville). If you live in one of these cities, please contact your local city administrator or planning department for more information.
- Short-Term Rental Ordinances: Vacation Rentals and Hosted Rentals. In Santa Cruz County, there are two types of short-term rentals (stays for 30 days or less): “Vacation Rentals” and “Hosted Rentals”. Short-term rental of an entire home requires a Vacation Rental Permit per County Code Section 13.10.694, most recently updated by Ordinances 5264 and 5265, on April 10, 2018. Short-term rentals of one or two rooms in a home requires a Hosted Rental Permit per County Code Section 13.10.690, adopted by Ordinance 5266 on June 6, 2018. Both permits are valid for five years.
- Dwelling Types where Short-Term Rentals Are Allowed. Short-term rentals are allowed in all zone districts that allow residential use by itself. Vacation rentals are allowed in single-family homes, duplexes or triplexes. Hosted rentals are allowed in any legal dwelling unit. Short-term rentals are not allowed in accessory structures, accessory dwelling units (ADUs), legally restricted affordable housing units, balconies, porches, sheds, tents and RVs.
- Maximum Permits Allowed. There are three beachfront neighborhoods (Live Oak, Seacliff/Aptos, and Davenport/Swanton Designated Areas) with limits on short-term rental permits. In the Live Oak and Seacliff/Aptos Designated Areas, 15% of total parcels may have short-term rental permits. In the Davenport/Swanton Designated Area, 10% of total parcels may have short-term rental permits. Short-term rental permits in these three areas are also limited to 20% of residential use parcels per block, with exceptions detailed in the County Code. In addition, there is a County-wide limit of 250 hosted rental permits. There is no County-wide limit for vacation rental permits.
- Maximum Number of Guests. Vacation rentals are allowed two overnight guests per bedroom plus two additional overnight guests. During the daytime, twice the number of overnight guests may be present at a vacation rental. Hosted rentals are allowed three guests per hosted bedroom.
- House Rules. The House Rules must be posted on site and must include at a minimum: rental age requirement, number of guests allowed, number of vehicles, noise limits, food/cooking requirements, pet requirements, prohibited events, trash management, and emergency evacuation instructions. Please see the Planning Department’s Vacation Rental and Hosted Rental application forms for a detailed list of these requirements.
- Transient Occupancy Taxes. Santa Cruz County imposes a 11% Transient Occupancy Tax on short-term rentals. Airbnb collects and remits the transient occupancy tax in unincorporated Santa Cruz County. However, Airbnb hosts must still complete a TOT application form with the County Treasurer-Tax Collector.
- Application Process. Short-term rental permits are processed at the Planning Department at 701 Ocean Street, Santa Cruz (4th Floor). Hosted rental permits may be processed over the counter. Vacation rental permits require Level IV review (public notice prior to issuance of permit) if the home has less than four bedrooms and Level V review (Zoning Administrator public hearing) if the home has four or more bedrooms.
- More Information. Visit the County’s Vacation Rental and Hosted Rental websites, visit the Planning Counter, email Planning.ZoningInfo@santacruzcounty.us or call the Zoning Information Line at (831) 454-2130.
- Other Rules. It is also important to understand and follow other contracts or rules that could apply to your home, such as leases, timeshare ownership rules, condo board or co-op rules, HOA rules, or rules established by tenant organizations. Please read your lease agreement and check with your landlord if applicable.
We are committed to working with local officials to clarify what these rules mean in the context of the sharing economy, and helping them understand how Airbnb benefits our community. Where needed, we will continue to advocate for changes that will allow regular people to rent out their homes.
https://www.airbnb.com/help/article/2359
Santa Cruz
– Allowed Areas: Many neighborhoods, but regulations apply.
– Restrictions: Must obtain a Business Tax Certificate, limited to a maximum of 180 days per year if the owner is not present, and more.
– Fees: $350 annual permit fee, 10% Transient Occupancy Tax (TOT).
– Waiting Lists: No current waiting list.
Capitola
– Allowed Areas: Specific zones only; check local zoning map.
– Restrictions: Requires a Short-Term Rental Permit, rentals must be owner-occupied for at least 180 days per year, and more.
– Fees: $1,200 initial permit fee, 12% TOT.
Soquel
– Allowed Areas: Mostly residential zones with specific regulations.
– Restrictions: Must have a Short-Term Rental Registration, maximum of 30 days rental period per guest, and more.
– Fees: $250 registration fee, 10% TOT.
– Waiting Lists: No waiting list.
Aptos
– Allowed Areas: Primarily in commercial zones and some residential areas.
– Restrictions: Requires a Business License, short-term rentals limited to 90 days per year if the owner is not present, and more.
– Fees: $200 business license fee, 12% TOT.
-Yes: Waiting List
Watsonville
– Allowed Areas: Limited; primarily commercial zones.
– Restrictions: Must obtain a Transient Rental Certificate, rentals allowed only in designated zones, and more.
– Fees: $300 certificate fee, 10% TOT.
– Waiting Lists: No waiting list.
La Selva Beach
– Allowed Areas: Mostly residential, with some restrictions.
– Restrictions: Short-Term Rental Permit required, maximum of 6 guests total, and more.
– Fees: $150 permit fee, 10% TOT.
– Waiting Lists: Yes waiting list.
Felton
– Allowed Areas: Mostly residential zones.
– Restrictions: Must apply for a Short-Term Rental Permit, owner must be present during rental, and more.
– Fees: $200 permit fee, 10% TOT.
– Waiting Lists: No waiting list.
Ben Lomond
– Allowed Areas: Primarily residential with specific limitations.
– Restrictions: Requires a Short-Term Rental Permit, rentals limited to 30 days per year, and more.
– Fees: $100 permit fee, 10% TOT.
– Waiting Lists: No waiting list.
Bonny Doon
– Allowed Areas: Residential with some restrictions.
– Restrictions: Short-Term Rental Permit needed, rentals allowed for up to 60 days per year, and more.
– Fees: $150 permit fee, 12% TOT.
– Waiting Lists: No waiting list.
Davenport
– Allowed Areas: Limited; mostly commercial zones.
– Restrictions: Requires a Special Use Permit, rentals are restricted to 90 days per year, and more.
– Fees: $250 permit fee, 10% TOT.
– Waiting Lists: No waiting list.