The City of Santa Cruz has a strict, two-tiered system. New short-term rentals in residential zones are effectively limited to 'Hosted Accommodations' where the owner lives on-site as their primary residence. Non-hosted rentals are prohibited in residential zones, and Accessory Dwelling Units (ADUs) are ineligible. A permit, TOT registration, and proof of $500k liability insurance are required.
To host an Airbnb in the City of Santa Cruz, you must live in the property as your primary residence and be present during the rental. You cannot get a new permit for a second home or vacation property in a residential zone. Accessory Dwelling Units (ADUs) and guest houses are completely banned from being used as STRs. You'll need to get a city permit, register for the 14% lodging tax, and show proof of at least $500,000 in liability insurance before you can start.
Permit Required
Yes
Night Limit
None
Primary Residence
Required
Total Tax Rate
14.0%
Disclaimer
This information is for general guidance only and should not be considered legal advice. Regulations change frequently. Always verify current requirements with local government authorities before operating a short-term rental.
Learn more about STR regulations and hosting tips.
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Permit Fee
$489
Processing Time
4-6 weeks
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