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.

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.

How Do I Apply?

Online applications are quick and easy, and applications made through the City’s online system are encouraged.  To start your online application, please visit: https://tot.cityofsantacruz.com/primeweb.  Click on “Apply for TOT Certification” to create an account.  Applicants will be required to pay a one-time, non-refundable Permit fee, found in the Planning Fee Schedule, at the time of application submittal, and existing STR operators will be issued a new TOT Certificate number as a part of this process.

For those applicants unable to use our online application, paper applications will also be accepted using a printable PDF version of the application.

Applicants who wish to submit a complete paper application may apply by mail or do so in person at City Hall during regular business hours.

Required Documents

Applicants will need to supply the following materials as a part of their application.  Please note that these items do not need to be drawn by a professional but they must be drawn to scale:

1. Plot Plan: Also known as a site plan, this item must show the location of all existing buildings on the property and the location and dimensions of all on-site parking, including garages.
   • Please note that the property must be in full compliance with the current minimum parking requirement, which is 1 parking space for each studio/1-bedroom residence and 2 parking spaces for each residence containing 2 or more bedrooms.
2. Floor Plan: The floorplan must show all exterior walls, interior walls, and provide labels for rooms (i.e. Bedroom 2). Additionally, the floor plan must identify which rooms, or whether the whole house, will be used for short-term renting.
3. Photograph:  This attachment must be a clear, color photograph of the outside of the unit.  The photo must include a visible building address number.
4. Three Proofs of Principal Residency: Applicants for Hosted STRs must provide:
   • Evidence of a Santa Cruz County Assessor’s Homeowners Exemption.
   • Two additional forms of evidence that the property is the owner’s principal residence, such as state and federal tax returns, a bank account statement, a car registration document, a driver’s license, a voter registration document, or a utility bill.

After STR permit issuance, applicants will also be required to enroll in the City’s Rental Inspection Service (RIS).  The current RIS fee can be found in the Planning Fee Schedule, and is paid annually by the applicant.  More information on the RIS program may be found on the Residential Rental Services page. 

You do not need a City business license as part of the application process, unless there are more than 3 dwellings on the parcel. For more information, please contact the Revenue Division at 831-420-5070.

What can I expect from the application review process?

After fees are paid, The City has 30 calendar days to review the STR application in order to approve it or to provide a detailed comment letter explaining what information is needed for approval. Once information is re-submitted, another 30 calendar day review cycle begins to either approve the application or provide more feedback.

NOTE: All floor plans and site plans submitted as part of an STR application will be reviewed for unpermitted construction and other code violations. Unpermitted construction and code violations found during the STR application process will be evaluated by staff to determine if they pose a life-safety hazard. If a life-safety hazard is found, then the property will be referred to the code compliance division for remediation. If a life-safety hazard is not found, then staff will not refer the situation to the code compliance division for remediation; instead, staff will describe the extent of the unpermitted work in a comment letter and allow the applicant to withdraw their application. In either situation, applicants can apply for another STR permit after all violations have been corrected.

What about Properties with Accessory Dwelling Units (ADUs)?

Short-Term Rentals are prohibited on properties containing both a single-family home and an ADU or JADU. That being said, the City does have several existing, legally-operating ADU STRs that were allowed to continue when the STR Ordinance was adopted. 

Hosting Platforms

Internet providers of vacation rental services, such as AirBnB, VRBO, etc., must follow the City's Administrative Guidelines for Short-Term Rental Hosting Platforms. 

Questions?

For questions related to the Short-Term Rental Permit, please contact: 

For Transient Occupancy Tax (TOT) Questions:

For questions related to TOT, please visit the City's TOT webpage, or contact the Revenue Division of the Finance Department: (831) 420-5070.