Overview: Are Short-Term Rentals Allowed in Daly City?

Yes, short-term rentals are explicitly allowed in Daly City, CA, but they are subject to strict regulations that took effect on January 1, 2021. The City Council adopted comprehensive regulations under Ordinance 1440, which governs how investors and hosts can operate short-term rental businesses within city limits.

Daly City defines a short-term rental as a home or room within a home rented to an individual for 30 consecutive days or less. However, operation is restricted to the host's primary residence—homes where the host resides for at least 265 days per year. This primary residence requirement is non-negotiable and represents the foundation of Daly City's STR regulatory framework.

How to Start a Short-Term Rental Business in Daly City

Step 1: Verify Eligibility

Before proceeding, confirm you can meet the primary residence requirement. Only the dwelling unit that serves as your primary residence qualifies for a short-term rental permit. If you own a multi-unit property, you may only operate a STR in the unit you personally occupy as your primary residence.

Step 2: Secure Required Permits and Licenses

Daly City requires two distinct authorizations:

1. Short-Term Rental Permit issued by the Planning Division
2. Business License issued by the Finance Department

Both must be obtained before operating and both expire on September 30th annually regardless of when issued during the year.

Step 3: Submit Applications

Contact the Planning Division at 650-991-8033 to begin your STR permit application process. After Planning Division approval, you must obtain your business license before the Short-Term Rental Permit can be issued.

Step 4: Comply with Operating Requirements

Once permitted, you must maintain compliance with all regulations including designating a local responsible contact person, maintaining records, and paying required taxes.

Required Documents, Permits, Licenses, and Guidelines

Short-Term Rental Permit Application Requirements

Core Application Documents:

• Short-Term Rental Permit Application (PDF)
• Payment for application fee ($750.00 new permit, $142.50 renewal)
• Credit Card Authorization Form (PDF) (if paying by credit card)

Proof of Primary Residency (Two Documents Required):

• Valid state-issued Driver's License or Identification Card
• Plus one of the following:
  • Utility bill
  • Property tax bill
  • Credit card bill
  • Voter registration
  • Bank statement

Additional Required Forms:

• Notarized Supplemental Authorization Form (PDF) (if applicant is not the property owner)
• Notarized Short-Term Rentals Operator Primary Residence Certification and Indemnification and Waiver Agreement (PDF)

Business License Requirements

Contact the Business License Division at (650) 991-5700 for specific requirements. The minimum annual fee is $110.00. Additional information is available through the Rental Property Application (PDF) on the Business License Division website.

Fee Schedule

| Permit/License | Fee | Notes | |---|---|---| | Short-Term Rental Permit (New) | $750.00 | One-time application fee | | Short-Term Rental Permit (Renewal) | $142.50 | Annual renewal | | Short-Term Rental Permit (Review exceeding 1 hour of staff time) | $165.00 per hour | Additional review costs | | Business License | Starting at $110.00 per year | Contact Finance Dept for exact amount |

Specific Regulations for Short-Term Rentals

Host and Property Requirements

Primary Residence Mandate:

• The short-term rental must be conducted in the host's primary residence
• Host must reside in the home for at least 265 days per year
• Only one primary residence permitted per host
• This requirement applies to both homeowners and tenants

Property Types Permitted:

• Single-family homes
• Condominiums
• Duplexes
• Townhomes
• Properties with multiple rental units (only host's primary residence unit)
• Inclusionary housing or income-restricted housing units
• Properties containing accessory dwelling units or junior ADUs

Operating Limitations

Stay Type Restrictions:

• Un-hosted stays: Maximum 100 days per year (host not on-site during guest's stay)
• Hosted stays: No limit (host on-site during guest's stay)
• Booking restriction: Limit of one booking per property per day

Occupancy Limits:

• Maximum of two guests per bedroom plus two additional guests per stay
• This limit applies regardless of whether the stay is hosted or un-hosted

Operational Requirements

Local Responsible Contact:

• Host must designate a local responsible contact person available 24 hours per day
• Contact must be able to address concerns or requests for assistance within one hour when rental is occupied
• Critical: The local responsible contact person cannot be the host

Record Keeping:

• Hosts must keep and preserve all records of short-term rental operation
• Records must be maintained throughout operation and made available for inspection

Tax Obligations:

• Hosts are responsible for paying transient occupancy taxes pursuant to Chapter 3.32 of the Daly City Municipal Code
• TOT payment is mandatory for each night the unit is rented

Special Considerations

Coastal Zone Properties:

• Properties in the Coastal Zone have different effective dates
• New regulations will not become effective until the California Coastal Commission certifies an amendment to the City's local coastal program
• Contact the Planning Division for specific guidance on Coastal Zone properties

Complaint and Enforcement

24/7 Complaint Hotline: (650) 275-5899

Online Reporting: Online Complaint Form

Code Enforcement: Violations are processed through the Code Enforcement website

Contact Information for Local Authority

Planning Division (Short-Term Rental Permits)

• Phone: (650) 991-8033
• Location: 333 90th Street, Daly City, CA 94015
• Website: www.dalycity.org/428/Short-Term-Rentals
• Services: STR permit applications, regulations guidance, application status

Business License Division (Business Licenses & TOT)

• Phone: (650) 991-5700
• Website: Business License Division website
• Services: Business license applications, transient occupancy tax questions

City Hall (General Information)

• Address: 333 90th Street, Daly City, CA 94015
• Phone: (650) 991-8000

Code Enforcement

• 24/7 Hotline: (650) 275-5899
• Online Form: Online Complaint Form
• Website: Code Enforcement Process

Links to Source Pages

Official City Resources

• Short-Term Rentals Main Page
• Short-Term Rentals Guide and Application (PDF)
• Business License Division

Legal Documents and Ordinances

• Chapter 5.92 of the Daly City Municipal Code
• Ordinance 1440 (PDF)
• Daly City Ordinances (Municode)

Application Forms

• Short-Term Rental Permit Application (PDF)
• Credit Card Authorization Form (PDF)
• Notarized Supplemental Authorization Form (PDF)
• Primary Residence Certification and Indemnification Agreement (PDF)
• Rental Property Application (PDF)

Complaint and Enforcement

• Online Complaint Form
• Code Enforcement Process

Historical Documentation (Ordinance Development)

• Nov. 9, 2020 Meeting Staff Report (PDF)
• Nov. 9, 2020 Proposed Ordinance (PDF)
• Sept. 28, 2020 Meeting Staff Report (PDF)
• Additional staff reports and draft ordinances available on the main STR page

Important Note for Investors: Daly City's STR regulations are among the more restrictive in the Bay Area, primarily due to the primary residence requirement and the 100-day limit for un-hosted stays. These regulations significantly impact investment strategies and operational models. Potential investors should carefully consider whether their intended use aligns with these requirements before proceeding with property acquisition or permit applications.

For the most current information and specific guidance tailored to your situation, always contact the Planning Division directly at (650) 991-8033.