Short-Term Residential Rentals

The city’s zoning code addresses short-term residential rentals. Standards for transient use of residential property for remuneration are provided that prohibit short-term residential rentals in all residential and PUD districts except those licensed uses permitted under the local coastal program, and this use requires a license in nonresidential districts (§23.64.350). Accessory dwelling units may not be used as short-term rentals (§23.80.070).

In contrast, home sharing (hosting guests for compensation while the dwelling unit owner lives in the dwelling unit) is permitted in single-family homes in residential and commercial zones with a home-sharing permit (§23.64.370). The code provides basic standards that include maximum occupancy and parking.

The city’s business license and regulations title of the municipal code also addresses short-term residential rentals. It establishes a short-term rental annual license requirement for this use (Chapter 7.40).

The code establishes an STR license cap of 250 units for the city and density limits for these uses based on a 55-foot separation requirement (§7.40.040), as well as a lottery system to bring the pre-existing number of STRs into compliance with these regulations (§7.40.035). The code establishes general requirements that address parking, events, unit management, complaints response, and recordkeeping (§7.40.050). It offers details on license application requirements, license renewals, and license denials, suspensions, and revocations (§7.40.060–090), as well as other administrative requirements.

Updated February 20, 2019