Carlsbad Short Term Rental Regulation: A Guide For Airbnb Hosts

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

According to Carlsbad's ordinance, all short term rental hosts must obtain a business license and a short term vacation rental permit before listing their property on sites like Airbnb or VRBO. The permit must be posted on the exterior of the rental unit and renewed annually.

To obtain a permit, hosts must submit an application with details like the unit address, number of bedrooms, local 24 hour contact, and more. Hosts renting condos or units with a Homeowners Association (HOA) must also ensure the covenants and restrictions allow short term rentals.

In addition to permits, Carlsbad hosts must collect and remit transient occupancy taxes (10% "hotel tax") and a 2% Carlsbad Tourism Business Improvement District assessment.

The city monitors listings and issues fines to those violating rules. Multiple violations can lead to permit revocation. While illegal rentals still operate, Carlsbad does strictly enforce regulations compared to other cities.

Starting a Short Term Rental Business in Carlsbad

Nestled along the gorgeous Pacific coastline, Carlsbad offers miles of scenic beaches, lush parks, and world-class resorts that attract over 3 million visitors a year. With idyllic weather year-round, the city presents a lucrative opportunity for short term rental hosts. However, Carlsbad enforces strict regulations to preserve community character.

Before listing your property, first confirm the address falls within a designated short term rental zone like the coastal region. Then obtain a city business license and short term vacation rental permit. Submit an application with details like number of bedrooms, local contact info, and more. Renew permits annually. Also register with monitoring services, collect 10% hotel taxes from guests, and remit payments on time. While the process involves effort upfront, complying with city law avoids headaches down the road.

Short Term Rental Licensing Requirement in Carlsbad

To legally operate a short term rental in Carlsbad, hosts must:

• Obtain a City of Carlsbad business license which requires an application and fee
• Apply for and receive an annual short term vacation rental permit
• Pay permit fees and submit documents like unit details and local contact info
• Prominently display the permit number on all rental listings
• Renew the business license and permit annually
• Abide by all terms and conditions listed on the permit
• Collect and remit transient occupancy taxes from guests
• Comply with any applicable HOA rules and covenants if renting a condo, townhome or other shared building
• Register with the city's monitoring provider to support enforcement
• Provide guests with all legally required terms, conditions, taxes and fees

The city strictly monitors listings and issues fines for violations. Multiple offenses can lead to permit revocation.

Required Documents for Carlsbad Short Term Rentals

To legally operate a short term rental in Carlsbad, hosts must submit the following:

• Business License Application - Apply for a City of Carlsbad business license
• Short Term Rental Permit Application - Request a permit to rent a property short-term
• Impact Response Plan - Outline procedures to minimize neighborhood impact
• Declaration Notification - Inform neighbors of intent to operate a short-term rental
• Transient Occupancy Tax Registration - Register to collect and remit hotel taxes

The permit must be renewed annually and displayed on the exterior of the rental unit. Additional documents like HOA approval may be needed depending on property. Failure to comply can result in fines or permit revocation.

Carlsbad Short Term Rental Taxes

As a short term rental host in Carlsbad, you must collect and remit multiple taxes that generate significant revenue for the city. Specifically, hosts must charge guests a 10% Transient Occupancy Tax (TOT), commonly called a hotel tax. You must also collect a 2% Carlsbad Tourism Business Improvement District (CTBID) assessment.

Combined, these amount to a 12% tax on the rental rate paid by guests. As the host, you are responsible for registering with the city finance department to regularly remit taxes from rental income. Payments must be submitted monthly by check, money order or cash.

While the taxes seem high compared to other cities, they fund key services. In fiscal year 2018, Carlsbad generated over $775,000 in TOT revenue from short term rental alone, a 15% annual increase. So by complying as a host, you help support the local community. Just be sure to factor taxes into your pricing and budgeting to remain profitable. The market supports strong rates, but underestimating taxes can quickly eat into your bottom line.

California Wide Short Term Rental Rules

nlike cities and counties in California that create their own short term rental regulations, there are limited statewide laws specifically targeting vacation rentals across the state. However, hosts must still adhere to various existing state legislation.

All short term rental hosts must collect and remit transient occupancy taxes, inform guests of occupancy limits, meet safety standards, and disclose certain details like if the unit is located in a high-risk wildfire zone. Hosts should also be aware of overarching laws related to discrimination, insurance, liability, tenant rights, and more that may impact vacation rental operations.

While the state takes a relatively hands-off approach to governing the short term rental industry compared to local jurisdictions, following state legislation can help hosts avoid legal issues. Checking for new bills related to short term rentals proposed in the legislature can also help hosts stay compliant in an evolving regulatory environment. Conducting due diligence on both statewide regulations and local ordinances is key for hosts looking to start and operate a legal and responsible short term rental business in California.

Does Carlsbad Strictly Enforce STR Rules?

Carlsbad actively monitors short term rental activity and issues fines and other penalties to those violating regulations. The city contracts with Host Compliance to track listings on 50+ rental websites.

Multiple violations can lead to permit revocation. While some hosts still operate illegally, Carlsbad does enforce rules more strictly than many other cities.

While short term rentals are restricted to certain designated zones, Carlsbad can be considered relatively Airbnb friendly compared to cities with stricter regulations or outright bans. The city has over 250 legally operating short term rentals which brought in over $775,000 in transient occupancy tax revenue in 2018.

How to Start a Short Term Rental Business in Carlsbad?

Here are the steps to start a legal short term rental in Carlsbad:

Step 1) Verify your property lies in an approved STR zone like the coastal area (required).

Step 2) Obtain a City business license for $118-$265 depending on gross receipts.

Step 3) Apply for a $381 short-term vacation rental permit plus $100 first-time registration fee. Submit unit details like address, bedrooms, contact info.

Step 4) Register with a monitoring service to track rental activity.

Step 5) Collect and remit 10% transient occupancy tax and 2% tourism assessment per stay.

Step 6) Renew permit annually for $381. Stay compliant with rules to avoid $1000+ fines.

Who to Contact About Short Term Rental Regulations and Zoning?

For questions regarding short term rental permits, contact:
City of Carlsbad Planning Division
Phone: (760) 602-4610
Email: planning@carlsbadca.gov For transient occupancy tax questions, contact: City of Carlsbad Finance Department
Phone: (760) 602-2023

What Hosts on BiggerPockets and Reddit Say About Carlsbad Regulations?

Hosts on sites like BiggerPockets and Reddit note that while regulations exist, Carlsbad's coastal communities remain a popular and lucrative area for short term rentals. Some hosts use property management companies to handle licensing and compliance.

Others caution about neighbors reporting illegal listings. Overall most hosts are able to operate successfully despite restrictions.