Santa Monica Short-Term Rental Regulations

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Permit & Licensing

Home-Sharing Permit and Home-Sharing Business License

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

Tax Obligations

Combined rate: 17% of gross rental income.

Rental Limits

Santa Monica does not impose an annual cap on the number of nights you can rent. Each individual stay must be 30 days or fewer per stay.

Occupancy & Density Limits

lesser of 10 total people, 1 person per 200 sq ft, or 2 adults per bedroom

Zoning & Restrictions

Whole-home vacation rentals (non-owner-occupied) are prohibited citywide. Only owner-occupied home-sharing is permitted. Applies to all residential zones citywide.

Insurance & Safety

Insurance

Santa Monica 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.

Penalties for Non-Compliance

Second violation within 36 months: 125% of first-violation fine; third and subsequent violations within 36 months: 150% of first-violation fine

Compliance Checklist

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

1. Confirm eligibility. The property must be your primary residence. Investment properties are not eligible.
2. Apply for Home-Sharing Permit and Home-Sharing Business License. Submit application + $100 fee.
3. Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
4. Collect and remit taxes. 17% on all bookings.
5. Renew annually. $50 renewal fee.

Frequently Asked Questions

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

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Santa Monica requires a Home-Sharing Permit and Home-Sharing Business License.

Are there major restrictions on short-term rentals in Santa Monica?

Yes — Whole-home vacation rentals (non-owner-occupied) are prohibited citywide. Review the full rules above before listing.

How much does a short-term rental permit cost in Santa Monica?

A Home-Sharing Permit and Home-Sharing Business License in Santa Monica costs $100 per year. Renewal is $50 per year.

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

Yes. Every Santa Monica permit type requires the property to be your primary residence, so investment or non-owner-occupied rentals generally are not eligible.

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

Santa Monica 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 Monica?

Short-term rental stays in Santa Monica are subject to a 17% Home-Share Transient Occupancy Tax. The host is responsible for collecting and remitting it.

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

Operating without a permit can cost up to $1,000 per day.