Santa Cruz Short-Term Rental Regulations

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Permit & Licensing

Hosted Residential Short-Term Rental Permit (max 250 citywide, first come first served)

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Non-Hosted Residential Short-Term Rental Permit (no new permits issued; existing legally-permitted STRs grandfathered)

This permit type does not require primary residence.

Application Process

Apply online at tot.cityofsantacruz.com/primeweb (or by paper/mail/in-person). Submit site plan, floor plan, exterior photograph, and (hosted) three proofs of principal residency; pay one-time non-refundable permit fee. City reviews within 30 calendar days per cycle. Enroll in RIS inspection program after issuance.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 14% of gross rental income.

Collection: Self-remitted: operator collects TOT from the guest and remits it to the City

Filing: Monthly TOT returns filed with the City (online at tot.cityofsantacruz.com/primeweb)

Rental Limits

Santa Cruz does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

Maximum 2 persons per bedroom plus 2 additional persons

Zoning & Restrictions

Prohibited on properties with both a single-family home and an ADU/JADU; affordable housing units may not be used as STRs; one STR per assessor's parcel number

Insurance & Safety

Insurance

Santa Cruz does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Enroll in the City's Residential Rental Inspection Service (RIS) after permit issuance
• Post STR rules inside the unit in a location readily visible to all guests
• Post a sign identifying the unit as a permitted STR with a 24-hour local contact within 20 feet of the nearest street
• Designate a local contact person available 24/7 within 20 miles able to respond within 30 minutes of a complaint
• Floor and site plans reviewed for unpermitted construction and life-safety hazards

Penalties for Non-Compliance

First two violations in a one-year period: infraction (fine per city bail schedule). Three violations in a one-year period: misdemeanor punishable by a $1,000 fine and/or up to 6 months in county jail. Civil penalty up to $2,500 per day per violation.

Platform Requirements

Hosting platforms must notify listers of STR and TOT requirements, exercise reasonable care to confirm units are lawfully permitted, and retain transaction records (owner name, address, dates, permit number) for at least 4 years. Violations are a misdemeanor ($1,000 per transaction).

Compliance Checklist

Follow these steps to legally operate a short-term rental in Santa Cruz:

1. Determine your permit type. Santa Cruz has 2 permit types. Identify which applies to your property (Hosted Residential Short-Term Rental Permit (max 250 citywide, first come first served), Non-Hosted Residential Short-Term Rental Permit (no new permits issued; existing legally-permitted STRs grandfathered)).
2. Meet safety requirements. Enroll in the City's Residential Rental Inspection Service (RIS) after permit issuance. Post STR rules inside the unit in a location readily visible to all guests. Post a sign identifying the unit as a permitted STR with a 24-hour local contact within 20 feet of the nearest street. Designate a local contact person available 24/7 within 20 miles able to respond within 30 minutes of a complaint. Floor and site plans reviewed for unpermitted construction and life-safety hazards.
3. Apply for your STR permit. Submit application + $341.00 fee. See permit types above to determine which applies.
4. Register for tax accounts. Set up lodging tax accounts with City of Santa Cruz Finance Department (Revenue Division).
5. Display your permit number. Include your permit/license number in all listings and advertisements.
6. Collect and remit taxes. 14% on all bookings.
7. Renew annually. Contact city for renewal fee details.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Santa Cruz?

Operating a short-term rental in Santa Cruz requires a permit, and Santa Cruz has restricted or paused new short-term rental permits (a moratorium or grandfathering applies). Confirm current availability with the city before buying a property to rent.

Does Santa Cruz require a short-term rental to be your primary residence?

Santa Cruz is not issuing new short-term rental permits, so in practice only previously permitted (grandfathered) properties can operate — regardless of whether it is your primary residence.

How many days a year can you short-term rent in Santa Cruz?

Santa Cruz does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Santa Cruz?

Short-term rental stays in Santa Cruz are subject to a 14% Transient Occupancy Tax (TOT). The host is responsible for collecting and remitting it.

What happens if you run a short-term rental without a permit in Santa Cruz?

Operating without a permit can cost up to $2,500 per day per violation.