Below is a concise, regulation‑first guide tailored to short‑term rental investors considering Berkeley, California. It consolidates current City of Berkeley requirements and flags a key amendment in process that, if adopted, will materially alter host and platform obligations.

Overview: Are Short-Term Rentals Allowed in Berkeley?

Yes. Short‑term rentals are allowed in Berkeley for stays of 14 consecutive days or fewer, subject to local registration, zoning, insurance, tax, and operating requirements.

Core constraints to know up front:

• STR use is accessory to a primary residence; the unit must be your principal place of residency.
• When the host is not present, STR operation is capped at 90 days per calendar year.
• Hosts must obtain a Zoning Certificate (permit) and display its number on all advertisements.
• Hosts must carry $1,000,000 in liability insurance and collect/remit the City’s 12% Transient Occupancy Tax (TOT) plus a 2% enforcement fee monthly.

Key source: City of Berkeley Short‑Term Rentals page and Berkeley Municipal Code (BMC) Chapter 23.314 (Short‑Term Rentals). See “Links to Source Pages” at the end.

How to Start a Short-Term Rental Business in Berkeley

A practical roadmap for investors:

1. Determine eligibility and zone compliance

• Confirm the subject property is in an allowed zone: R‑1, R‑1A, R‑2, R‑2A, R‑3, R‑4, R‑5, R‑S, R‑SMU, C‑C, C‑U, C‑NS, C‑SA, C‑T, C‑DMU, C‑W, MUR (including Hillside “H” overlay). Use the City’s parcel information lookup tool to verify zoning.
• Confirm the unit is your primary residence (see residency rules below).
• Confirm you are authorized by the property owner if you are a tenant.

2. Secure required insurance

• Obtain liability coverage of at least $1,000,000 and keep evidence of coverage.

3. Complete the Zoning Certificate application

• Submit the online Short‑Term Rental Zoning Certificate application and upload all required documents (see “Required Documents, Permits, Licenses, and Guidelines” below).

4. Set up tax remittance

• Register and file monthly TOT (12%) and enforcement fee (2%) via the City’s secure portal for Berkeley TOT (see Links).

5. Operationalize host responsibilities

• Notify adjacent residents of your STR operation.
• Display your Zoning Certificate number in all STR advertisements.
• Provide guests with the City’s Short‑Term Rental Guest Requirements letter upon booking and arrival.
• Maintain compliance with Berkeley Housing Code occupancy and safety standards.
• Track your 90‑day “host not present” limit (if applicable) and all guest stay durations.

6. Ongoing compliance and recordkeeping

• Remit TOT and enforcement fee monthly; retain booking records.
• Maintain proof of insurance; promptly update adjacent residents of any host/contact changes.
• Coordinate with any hosting platform you use and ensure your certificate number appears on listings.

Required Documents, Permits, Licenses, and Guidelines

Permits and licenses

• Short‑Term Rental Zoning Certificate (City application required; this is the foundational approval).
• Business License: The STR ordinance requires a business license for STR operation; this is typically obtained in tandem with the Zoning Certificate application process in Berkeley’s portals. Confirm current process via the Planning Department.

Required documents for Zoning Certificate application

• Proof of ownership or property owner approval (one of the following):
  • Deed, or
  • Signed Property Owner Agreement form, or
  • Property tax bill (mailed copy listing owner’s name; internet copies not accepted).
• Three proof‑of‑residency documents (documents must show the unit address, including unit number if applicable):
  • California driver’s license or ID
  • Credit card bill
  • Property tax bill
  • Voter registration
  • Bank statement
  • Utility bill
• If renting an accessory dwelling unit (ADU), a copy of the deed restriction demonstrating the unit is legal.

Fees and taxes (as of 2025)

• Application fee: $395.00 (non‑refundable), plus a processing fee added at submission.
• Transient Occupancy Tax (TOT): 12% of the listing price (including cleaning fees) for stays of 29 nights or fewer.
• Enforcement fee: 2% of rents charged; remitted monthly with TOT.
• Payment: Through the City’s secure vendor portal for Berkeley TOT (see Links).

Insurance

• Minimum liability insurance: $1,000,000.

Advertising requirements

• Display your Zoning Certificate number in all advertisements.

Guest communications

• Provide all guests with the City’s Short‑Term Rental Guest Requirements letter upon booking and arrival.

Residency and occupancy rules

• STRs are allowed only when the unit is the host’s principal place of residence.
• When the host is not present, the STR may be operated up to 90 days per calendar year.
• Number of occupants: generally two per bedroom; follow Berkeley Housing Code limits.

Specific Regulations: Berkeley (City/County/State)

City of Berkeley STR regulations (current)

• Eligibility and zoning

  • STRs are an accessory use to residential use and must be operated within the host’s primary residence.
  • Allowed in: R‑1, R‑1A, R‑2, R‑2A, R‑3, R‑4, R‑5, R‑S, R‑SMU, C‑C, C‑U, C‑NS, C‑SA, C‑T, C‑DMU, C‑W, MUR (including Hillside H overlay).
  • Units in Below Market Rate (BMR) programs are prohibited.
  • Units subject to a no‑fault eviction within the prior five years are prohibited (with narrow owner‑occupancy exceptions per the Rent Stabilization Ordinance).
  • Accessory Dwelling Units (ADUs):
    • Cannot be used if built after April 1, 2017.
    • Cannot be used if they have been used as long‑term rentals since April 1, 2007.

• Operating standards

  • 14‑day limit: STRs are limited to 14 consecutive days or fewer.
  • 90‑day cap: If the host is not present, the unit may be rented as an STR for up to 90 days per calendar year.
  • Liability insurance: $1,000,000 minimum.
  • TOT and enforcement fee: 12% TOT + 2% enforcement fee remitted monthly.
  • Occupancy: Two persons per bedroom as a general rule; verify Housing Code for specifics.
  • Adjacent property notification required; keep host/contact info current.
  • Display Zoning Certificate number on all ads.
  • Provide guests with the City’s STR Guest Requirements letter on booking and arrival.
  • Long‑term stay trigger: Guests staying 14 consecutive days or more may be covered by the Rent Stabilization and Eviction for Good Cause Ordinance.

• Advertising and platform responsibilities

  • Hosts must list their Zoning Certificate number on all advertisements.
  • If using a hosting platform, ensure your listing includes the certificate number and that you remain compliant with City requirements. (Note: Berkeley has pursued ordinance changes to increase platform accountability—see below.)

County level

• No separate Alameda County STR permitting regime was identified in the provided sources. STR regulation in Berkeley is administered at the City level.

State level (California)

• Berkeley’s STR rules operate within California’s broader framework, which includes, among other provisions:
  • Civil Code Section 1946.2 (rent control applicability to SFR tenancies extended to newer units) and Section 1954.50 et seq. (the Costa‑Hawkins Rental Housing Act) govern tenancy and rent control; these influence how STRs interact with local rent stabilization when stays exceed short‑term thresholds.
  • Business and Professions Code Section 17538.45 (platform reporting of STR bookings to certain jurisdictions, where applicable).
  • Health and Safety Code standards for habitability and occupancy that intersect with local Housing Codes.
  • Revenue and Taxation Code provisions for transient occupancy taxes administered by local agencies.
• Where state law and local law overlap, the stricter or more specific provision governs. In Berkeley, local STR rules (e.g., primary‑residence requirement, 90‑day cap) apply.

Proposed Berkeley STR ordinance amendments (July 9, 2024 memo) — Not yet enacted

• Councilmember Kate Harrison proposed updates to BMC 23C.22 to:
  • Shift regulatory and tax‑collection burden to hosting platforms (joint liability for TOT with hosts, listing disclosures, and a “safe harbor” for compliant platforms).
  • Limit hosts to a single principal residence.
  • Restrict STRs to a single ADU or single Accessory Building on a property (and in “Golden Duplexes” unless long‑term rented in the last 10 years).
  • Close the “14/30‑day loophole” by disallowing rentals between 14 and 30 days.
  • Enhance remedies (attorney’s fees in private actions, administrative subpoenas, and Rent Board referral for certain violations).
• Status: The memo recommends referral and signals legal concerns. As of the materials provided, adoption is not confirmed. Investors should verify the current status of any amendments before relying on them operationally.

Contact Information

City of Berkeley — Planning Department (Land Use Division)

• Email: str@berkeleyca.gov
• Phone: (510) 981‑7410

City of Berkeley — Finance Department (Revenue Development)

• Email: revdev@berkeleyca.gov
• Phone: (510) 981‑7318

24‑Hour STR Compliance Line (complaints and research)

• Phone: (833) 300‑0787

Online tools and portals

• STR application/Zoning Certificate: Berkeley STR application portal
• Berkeley TOT filing and payment: Secure vendor portal for Berkeley TOT
• Property zoning lookup: City of Berkeley Community GIS Portal (zoning lookup)

Links to Source Pages

• City of Berkeley — Short‑Term Rentals overview: berkeleyca.gov/city-services/livable-neighborhoods/short-term-rentals
• Berkeley Municipal Code Chapter 23.314 (Short‑Term Rentals): berkeley.municipal.codes/BMC/23.314
• Councilmember Kate Harrison Memo — Proposed STR amendments (July 9, 2024): berkeleyca.gov/sites/default/files/documents/2024-07-09%20Item%2023%20Amendments%20to%20Berkeley%20Municipal%20Code%2023C.22.pdf
• Airbnb Help Center — Berkeley, CA STR overview: www.airbnb.com/help/article/857
• City of Berkeley — Parcel/Zoning Lookup (Community GIS Portal): berkeleyca.gov/city-services/community-gis-portal
• City of Berkeley — STR Application/Zoning Certificate (ACA portal): aca.cityofberkeley.info/str/Welcome.aspx
• City of Berkeley — TOT filing and payment portal (Host Compliance): secure.hostcompliance.com/berkeley-ca/tot
• City of Berkeley — Online Permits Portal (look up STRs): permits.cityofberkeley.info/citizenaccess/Default.aspx

Practical tips for investors

• Treat your Zoning Certificate number as a brand element—display it in all listing titles and descriptions to reduce platform takedowns and City inquiries.
• Build a calendar view that separates “host present” vs “host not present” stays to monitor the 90‑day cap.
• Retain guest communications and booking confirmations to prove compliance with the 14‑day maximum stay rule and to support monthly TOT filings.
• Verify your property’s zoning using the City’s GIS tool before purchase; a compliant zone is a precondition to any STR business plan in Berkeley.
• If you plan to use ADUs, confirm deed restriction and construction date restrictions before onboarding; non‑conforming ADUs will disqualify a property.

If you’d like, I can also draft a compliance checklist you can paste into your operations playbook.