Santa Monica Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Santa Monica,California?

Short term rentals (STRs) have been a contentious issue in the coastal city of Santa Monica. With its desirable beachfront location in metro Los Angeles, the city sees heavy visitor demand for vacation rentals. However, the city has implemented tight regulations to allow only limited hosted home sharing, while continuing to crack down on illegal hotels operating as STRs.

The city requires both a permit and business license to legally operate short term rentals. Qualified residents can home-share rent out rooms in their primary residence for less than 30 consecutive nights, if they live on site throughout the rental period. Unhosted entire home rentals are prohibited. There are also occupancy limits, parking requirements, and other rules hosts must follow.

Santa Monica levies a 14% transient occupancy tax on hosts' rental income, plus a $2 per night fee. Hosts must collect and remit taxes for any stays less than 30 nights. The city is known for aggressive enforcement of regulations, with hefty fines over $1000 per day for violations. Before listing any STR in Santa Monica, hosts should thoroughly review all local requirements at smgov.net and contact the Planning and Community Development department with any questions.

Starting a Short Term Rental Business in Santa Monica

Opening a legal and compliant short term rental in Santa Monica requires jumping through some extra hoops compared to other cities, but it can still be a viable business if done properly.

As a prospective host, you first need to understand Santa Monica's short term rental ordinance inside and out. The rules allow hosted "home sharing" rentals where you remain on site in your primary residence during guest stays. "Vacation rentals" when you are not present or renting entire separate units on your property are prohibited.

You must register for permits and licenses before listing your property anywhere or accepting any bookings. This includes obtaining a Home-Sharing Permit and Business License from the city, which involves submitting documents, paying fees, and certifying compliance.

It is mandatory to collect and remit hotel taxes, which are 14% of rental charges in Santa Monica. You must also adhere to all safety rules, parking limits, occupancy maximums and other regulations. Violations can lead to very costly citations.

While the permit process takes more legwork compared to other cities, responsible hosts report having positive experiences renting rooms in their Santa Monica homes to vacationers once up and running. Guests are drawn to the desirable beachside location. As an owner-occupant host, you can earn solid supplemental income while meeting visitors from around the world.

The keys are doing thorough research on the latest rules, consulting the city planning department, hiring specialized services if needed, and designing rigorous procedures for compliance. If this preparation is done properly on the front end, Santa Monica home sharing rentals can be a fruitful endeavor.

Short Term Rental Licensing Requirement in Santa Monica

Renting out all or part of your Santa Monica home on a short term basis requires formal approval from the city government. You must complete a straightforward permitting and licensing process that provides proof you are operating legally as a short term rental host.

The two components involved are:

Home-Sharing Permit All hosts must apply for a Home-Sharing Permit from the Santa Monica Planning & Community Development Department. This permit allows you to rent out rooms in your primary residence while you remain onsite throughout the rental period. Requirements include:

• Paying a $100 fee that covers your first two years
• Providing documents to confirm Santa Monica residency
• Listing details on the unit like bedroom count and maximum guest capacity
• Showing you have adequate insurance coverage

Home-Sharing Business License Additionally, a business license tax must be paid based on your gross rental income. At minimum this is $75 per year for income up to $60,000. The tax rate increases incrementally for higher earnings.

Obtaining these two approvals from the City of Santa Monica is mandatory. Listings without proper permits and licenses are deemed illegal operations. Fines can exceed $1000 per day for non-compliant short term rental hosts.

Required Documents for Santa Monica Short Term Rentals

To obtain approval for short term rental operations in Santa Monica, hosts must submit the following key documents as part of the home-sharing permit application process:

Proof of Primary Residency You'll need to show official identification confirming the Santa Monica address is your primary dwelling place. Acceptable documents include:

• California driver's license or ID card
• Car registration
• Voter registration

Proof of Ownership or Long-Term Residency If you own the property, provide a copy of the grant deed. For rental tenants, submit your lease agreement showing a minimum 12 months term. Month-to-month tenants are not eligible.

Contact Details for Co-Hosts If you plan to co-host with another resident, provide their full name, address, phone and email contact information.

Square Footage and Bedrooms Submit floor plans indicating total interior living space square footage along with number of bedrooms. This determines maximum permitted guests.

Insurance Policy Details Evidence of active homeowners or renters insurance of at least $500,000 that specifically allows short term rental activities.

By having all required documents ready, Santa Monica hosts can ensure their permit application is processed promptly and avoid delays starting their STR business. Let me know if you need any clarification or have additional questions!

Santa Monica Short Term Rental Taxes

As a short term rental host in Santa Monica, you are responsible for collecting and remitting applicable taxes on the gross rental income from your property. There are two primary taxes that apply:

Transient Occupancy Tax (TOT) Santa Monica levies a 14% Transient Occupancy Tax (TOT) on all short term stays of 30 consecutive nights or less. This tax is paid by the guest and collected by the host or booking platform. As the host, you are liable to register with the city's Finance Department and remit this 14% TOT on a regular basis.

The TOT applies to the full rental amount paid by guests, excluding any separately stated fees or taxes.

TOT registration and monthly or quarterly remittance is required once you begin renting out your Santa Monica property.

Failure to register and pay TOT represents tax evasion and can result in penalties, interest charges, audits, and other enforcement action.

$2 Per Night FeeThere is an additional $2 per night fee that applies to short term rental stays under 30 nights in Santa Monica. This $2 fee is paid by the guest but collected and remitted by the host.

As a short term rental host operating legally in Santa Monica, you must factor these taxes into your rates and rental income projections. Keep accurate records and make timely payments to avoid non-compliance issues with the Santa Monica Finance Department. Consider automating tax tracking, collection and remittance through an accountant, bookkeeper or software tools designed for short term rental hosts.

Santa Monica wide Short Term Rental Rules

Santa Monica has implemented clear, definitive regulations that all short-term rental hosts must follow. As a host, it is your responsibility to understand and comply with these rules. Failure to do so can result in fines or loss of rental permissions.

Occupancy Limits

• The maximum number of overnight guests (including host and other residents) is 10 people
• There is a limit of 1 person per 200 square feet of your home
• For example, a 1000 sq ft home could accommodate up to 5 guests

Parking Rules

• You must provide 1 designated parking spot on your property for each bedroom rented out to guests
• For a 3 bedroom home used for short-term rentals, 3 parking spots would need to be provided

Health and Safety

• Working smoke detectors must be installed in every bedroom and common area
• The rental must meet all applicable health, safety, building, fire protection, and rent control regulations

Nuisances

• Loud parties, amplified music, unreasonable noise or disturbances are strictly prohibited
• You as the host are responsible for ensuring guests do not create nuisances

By understanding and following these clear Santa Monica rules, you can operate your short-term rental business smoothly while maintaining positive relationships with neighbors and the community. Reach out to the Planning and Community Development department with any specific questions on how regulations apply to your property.

Does Santa Monica strictly enforce STR rules?” Is Santa Monica Airbnb friendly?

Santa Monica takes enforcement of its short-term rental regulations very seriously. The city has a dedicated hotline and proactive investigation process to identify illegal listings and levies fines exceeding $1000 per day for violations.

Compared to other popular tourist destinations in California, Santa Monica is generally considered less friendly towards Airbnb and other short-term rental platforms. The city maintains strict limitations on non-hosted "vacation rentals" while imposing robust permitting, licensing, zoning and taxation rules around legally operating hosted "home-shares".

The extensive regulations and aggressive enforcement tactics indicate that Santa Monica prioritizes restricting the short-term rental market over facilitating growth. Hosts operating legally in the city need to closely adhere to ordinances around guest limits, parking, permits and taxes to avoid steep penalties. Those considering illegal operations face substantial risk of investigation and citation from code enforcement teams.

While the short-term rental market still operates in Santa Monica, the barriers to entry and operating costs are higher compared to cities with more relaxed policies. The Santa Monica approach aims to strongly regulate short-term rentals rather than promote or encourage the business model. Hosts describe weighing potential profits against legal uncertainty, paperwork burdens and enforcement scrutiny in the local market.

How to Start a Short Term Rental Business in Santa Monica

Starting a legal and compliant short term rental business in Santa Monica requires following a few key steps:

Step 1: Research the regulations Thoroughly read through Santa Monica's short term rental ordinance, No. 2484. This covers the rules and requirements in detail. Pay particular attention to the sections on:

Types of short term rentals allowed (home-sharing vs vacation rentals)

• Permitting and licensing
• Location restrictions
• Occupancy limits
• Parking requirements

Step 2: Determine if your property and rental plans meet the requirements Make sure your rental property and planned rental operation meets regulations in aspects like:

• Primary residence status
• Location zoning
• Number of bedrooms
• Available parking
• Planned number of guests

If your plans align with the rules, move to the next step. If not, you unfortunately cannot legally operate a short term rental in Santa Monica.

Step 3: Complete permit and license applications Submit the required Home-Sharing Permit application and Business License application forms to the city. Provide all mandatory supplemental documents. Pay the one-time $100 permit fee and annual $75 business license fee.

Step 4: Register your rental with hosting platforms List your Santa Monica rental on platforms like Airbnb, VRBO, or Booking.com. Include your city-issued permit and license numbers in listings to confirm your legal operating status.

Step 5: Collect and remit taxes Once rentals begin, be sure to charge guests the 14% Transient Occupancy Tax on all stays under 30 nights. File returns and remit owed taxes to the city regularly.

Following these straightforward steps will set you up for success operating a legal and complaint short term rental business in Santa Monica! Reach out to the city planning department with any questions.

Who to contact in Santa Monica about Short Term Rental Regulations and Zoning?

The city of Santa Monica has dedicated departments focused on short term rental oversight and enforcement. Reaching out to the correct contacts can help ensure your rental operates legally.

For permit applications, license questions, safety and zoning regulations, contact the Planning and Community Development Department (PCD). PCD staff can clarify requirements around hosted home sharing versus prohibited vacation rentals.

Planning and Community Development

Phone: (310) 458-8341

Email: pcd@smgov.net

Website: www.smgov.net/departments/pcd

Address: 1685 Main St #212, Santa Monica, CA 90401

For suspected violations, to check if a property has proper permitting, or to submit complaints regarding short term rental operations, contact the Short Term Rental Enforcement Hotline. Code enforcement investigates reports of illegal activity. Fines over $1000 per day can apply for unpermitted rentals.

Short Term Rental Enforcement Hotline

Phone: (310) 656-5575

Email: shorttermrentals@smgov.net

The Finance Department handles collection of transient occupancy taxes, which are levied at 14% on rentals under 30 nights. Ensure proper calculations, reporting, and remittance of owed taxes.

What do Airbnb hosts in Santa Monica on Reddit and Bigger Pockets think about local regulations?

Compliance is CriticalMost hosts emphasize the importance of fully complying with Santa Monica's strict home-sharing requirements. The city's aggressive enforcement and significant penalties for violations make illegally operating simply too risky. Hosts recommend thoroughly researching the latest rules and permitting processes to avoid fines.

Permitting Process is a Hurdle While hosts understand the regulations aim to protect residential neighborhoods, some find the permitting and licensing systems burdensome compared to other cities. The paperwork, fees, and inspections make it a lengthy process to start hosting legally. Streamlining administrative requirements could ease the barrier to compliance.

Regulations Disincentivize Hosting Some experienced hosts choose not to list rentals in Santa Monica at all due to the intensity of restrictions compared to neighboring areas. Listing just over the border in Venice or Marina Del Rey allows avoiding Santa Monica's stringent requirements altogether in favor of laxer rules. This causes some to view the city as hindering tourism and the sharing economy.

Underground Hosting Carries Risk A minority of comments on BiggerPockets hint at hosts illegally operating short term rentals under Santa Monica's radar to bypass regulations. However, most quickly warn that the city's aggressive enforcement makes the odds of eventually getting caught very high. No hosting at all is better than the headaches and huge fines from an underground rental being discovered.

Overall the consensus is that Santa Monica's strict short term rental rules demand careful adherence by hosts seeking to legally operate and avoid severe penalties. The city's intense oversight and enforcement leaves little room for rule-bending in this sector.