Overview: STR Status in Millbrae, CA

Short-term rentals ARE ALLOWED in Millbrae, CA, but with strict limitations and comprehensive regulations. The City of Millbrae permits STR operations through a structured permit system established under Ordinance Number 771, approved July 31, 2018. However, the city places "strict limitations" on rentals for periods less than thirty days, requiring multiple permits, inspections, and ongoing compliance with extensive operational requirements.

The regulatory framework is designed to balance income opportunities for residents with neighborhood preservation and housing stock protection. Operating an STR without proper permits is prohibited and subjects violators to fines up to $1,000 per day.

Starting a Short-Term Rental Business in Millbrae

Step-by-Step Process

Step 1: Planning Department Application

• Submit STRR permit application for transient occupancy registration certificate
• Present Property Tax Statement or Deed of Ownership
• Pay required application fee

Step 2: Building Safety Inspection

• Schedule and complete mandatory health and safety inspection
• Pay inspection fee
• Ensure compliance with applicable building codes

Step 3: Finance Department Requirements

• Pay back taxes (up to 3 years) for annual Transient Occupancy Tax if operating illegally
• Obtain Business License (fee required)
• Obtain Home Occupation License (fee required)

Key Eligibility Requirements

Primary Residence Requirement: The STR must be your primary residence where you reside for at least 265 nights per year. You can only have one primary residence at any given time.

Hosted vs. Nonhosted Distinction:

• Hosted Units: You sleep in the unit while renting, maximum 2 bedrooms rented, unlimited nights allowed
• Nonhosted Units: You are not present during stays, maximum 100 nights per year

Required Documents, Permits, Licenses, and Guidelines

Essential Documents and Permits

1. STRR Permit Application (Form required)
2. Transient Occupancy Registration Certificate
3. Business License
4. Home Occupation License
5. Building Safety Inspection Certificate

Required Documentation Checklist

Identity and Ownership Proof:

• Property Tax Statement or Deed of Ownership
• Valid government-issued photo ID
• Grant Deed (REQUIRED)
• Homeowner's Tax Exemption verification

Property Information:

• Detailed property description and address
• Number of bedrooms and square footage
• Number of on-site parking spaces
• Proof property meets building/safety codes

Operational Planning:

• List of hosting platforms where property will be listed
• Intended rental type (hosted vs. nonhosted)
• Number of rooms to be rented
• Authorization for authorized agents (required for nonhosted units)

Legal Compliance:

• Transient Occupancy Tax registration
• Hold harmless, indemnify and defend agreement
• Agreement to comply with all applicable laws and permit conditions
• Certification of submitted information

Financial Requirements

Fees:

• Permit application fee (amount determined by council)
• Building inspection fee
• Business license fee
• Home occupation license fee

Deposits:

• $1,000 refundable deposit required for tenants and nonhosted unit operators
• Deposit covers citations, cleanup, and emergency response costs
• Must replenish within 30 days if funds are drawn

Insurance Requirements

Proof of Insurance:

• Policy type and amount of coverage
• Date of coverage issuance and expiration
• Insurance carrier information

Specific Regulations for Short-Term Rentals

Municipal Regulations (Millbrae Municipal Code Chapter 7.30)

Occupancy Limits:

• Nighttime: Maximum 2 persons per bedroom + 2 additional persons per unit
• Daytime: Maximum twice the nighttime occupancy
• Studios treated as zero bedrooms for occupancy calculations

Parking Requirements:

• No additional parking required for STRs
• Vehicle limit restricted to number of on-site parking spaces only
• All existing on-site parking must be made available to renters/guests

Operational Restrictions:

• Prohibited Events: Weddings, corporate events, commercial functions, and similar gatherings that could cause traffic, parking, or noise issues
• Smoking Ban: No smoking (tobacco or cannabis) inside STR units
• Noise Control: No unreasonable noise or disturbances during nighttime hours (9 PM - 7 AM Sunday-Thursday; 10 PM - 7 AM Friday-Saturday)
• Property Maintenance: Appropriate refuse/recycling service required; property must be free of debris; trash cans cannot be placed on street more than 24 hours before pickup

Listing Requirements:

• All advertisements (paper or electronic) must include:
  • City of Millbrae Certified Short-Term Residential Rental permit number
  • Business license number

Permit Limitations:

• Each permit expires at end of fiscal year (July 1 - June 30)
• Permits are non-transferable and personal to permittee
• Maximum 100 nights per year for nonhosted operations

Accessory Dwelling Unit (ADU) Restrictions

Important ADU Limitations:

• Both standard ADUs and Junior ADUs (JADUs) are prohibited from STR use
• This restriction is explicitly stated in Millbrae Municipal Code Section 10.05.3240
• ADUs must rent for minimum 30 consecutive calendar days
• Cannot be used as short-term residential rentals under Chapter 7.30

County and State Regulations

Transient Occupancy Tax (TOT):

• Monthly reporting required to Tax Administrator
• Must submit complete and accurate TOT returns even if property not rented
• Maintain records for three years demonstrating compliance
• Responsible for tax payments even if hosting platforms collect but fail to remit timely

Business License Compliance:

• Must comply with Millbrae Business License Ordinance (Chapter 7.05 MMC)
• Annual business license tax required
• Failure to maintain current license violates STR permit conditions

Zoning Regulations

Allowed Zoning Districts: STRs are permitted as accessory uses in:

• R-1LL (Single-Family Residential Large Lot)
• R-1 (Single-Family Residential)
• R-2 (Duplex/Triplex Residential)
• R-3 (Multifamily Residential)
• C (Commercial)
• DIA (Downtown Improvement Area)

Contact Information for Local Authority

Primary STR Oversight

Community Development Department

• Phone: 650-259-2336
• Location: 621 Magnolia Avenue, Millbrae, CA 94030
• Website: www.ci.millbrae.ca.us

Code Enforcement

Code Enforcement Hotline

• Phone: 650-259-2440
• Purpose: Report STR violations, complaints, issues, or concerns
• Also handles complaint form submissions

Law Enforcement

Millbrae Police Bureau

• Business Line (24-hour non-emergency): 650-259-2300
• Purpose: Noise disturbance issues
• Available 24 hours for non-emergency STR-related disturbances

Permit Application and Processing

Community Development Department

• Applications processed by Director of Community Development
• Permit renewals may require less documentation than initial applications
• Appeals process available through planning commission

Source Links

Official City Resources

1. Main STR Information Page: www.ci.millbrae.ca.us/282/Short-Term-Residential-Rentals

2. Complete Municipal Code (Chapter 7.30): www.codepublishing.com/CA/Millbrae/html/Millbrae07/Millbrae0730.html

3. STRR Permit Application Form: ci.millbrae.ca.us/DocumentCenter/View/626/Short-Term-Residential-Rental-Permit-and-Transient-Occupancy-Registration-Certificate-PDF

4. STRR Application Process and Fees (Updated July 2025): www.ci.millbrae.ca.us/DocumentCenter/View/2684/STRR-Application-Process-and-Fees-July-2025-PDF

5. Building Safety Inspection Requirements: www.ci.millbrae.ca.us/DocumentCenter/View/1669/STRR-Building-Safety-Inspection-PDF

6. Occupancy Limits Document: www.ci.millbrae.ca.us/DocumentCenter/View/707/STRR-Occupancy-Limits-PDF

7. STRR Ordinance 771: www.ci.millbrae.ca.us/DocumentCenter/View/708/STRR-Ordinance-771-PDF

8. Transient Occupancy Tax Return Form: www.ci.millbrae.ca.us/DocumentCenter/View/709/Transient-Occupancy-Tax-Return-PDF

9. Approved STRR Public Registry (Updated July 2025): www.ci.millbrae.ca.us/DocumentCenter/View/2682/APPROVED-STRR-PUBLIC-REGISTRY-UPDATED-JULY-2025-PDF

Zoning and Land Use References

10. Zoning Code (Current through Ordinance 794): ccag.ca.gov/wp-content/uploads/2022/11/5.6-A6-Millbrae-Zoning-Amendments-Draft-City-Edits-9.20.22-1.pdf

11. ADU Ordinance 782: www.aducalifornia.org/wp-content/uploads/2021/02/Millbrae-10-13-2020.pdf

Investment Considerations

Risk Factors:

• Strict enforcement with daily fines up to $1,000
• Primary residence requirement limits investment opportunities
• Nonhosted operations limited to 100 nights annually
• ADUs completely prohibited from STR use
• Annual permit renewal required

Compliance Costs:

• Multiple permit and license fees
• Building inspection costs
• $1,000 deposit requirement for nonhosted operations
• Potential back tax liability for previous illegal operations
• Ongoing tax reporting and compliance costs

Market Limitations:

• Hosted operations require owner presence (limits scalability)
• Maximum occupancy restrictions affect revenue potential
• Extensive operational restrictions limit hosting flexibility

Regulatory Stability:

• Well-established regulatory framework since 2018
• Regular updates to fees and processes (July 2025 updates available)
• Active enforcement through dedicated hotline
• Public registry maintains transparency and accountability

This comprehensive regulatory environment requires careful consideration of compliance costs and operational limitations before entering the Millbrae STR market. The city's approach prioritizes neighborhood stability over STR investment opportunities, making it a challenging market for investors seeking high-volume operations.