Overview: Are STRs Allowed in Novato?

Yes. Novato allows short‑term rentals of residential dwellings for fewer than 30 consecutive nights, provided the operator is a permanent resident and the property is properly registered, inspected, and operated in compliance with city rules. The city uses a one‑stop online portal (Host Compliance) to manage registrations, business licenses, and quarterly transient occupancy tax (TOT) payments. Citation: www.novato.org/government/community-development/short-term-rental-program

How to Start a Short‑Term Rental Business in Novato

A practical, step‑by‑step sequence:

1. Confirm eligibility:

• The unit is a legally permitted residential structure.
• You are the owner or long‑term tenant who qualifies as a “Permanent Resident” and occupy the home at least 60 days per year.
• The home provides off‑street parking (garage and/or driveway) sufficient for guests.
• Property is not disqualified (e.g., ADUs permitted 2017 or later; deed‑restricted affordable units; non‑residential principal uses; RVs, tents, boats, etc.).

2. Prepare documentation:

• Proof of permanent residency (3 of 5 acceptable documents, both name and address visible).
• Off‑Street Parking Plan (spaces list, photos; shared‑access instructions if applicable).
• Property Inspection photos (egress; CO and smoke detectors; interior guest signage; designated off‑street parking).
• Draft STR unit notice (posted inside front door).
• If in a Wildland Urban Interface (WUI) zone, schedule a WUI inspection with Novato Fire District (415.878.2623).

3. Apply through the City’s online portal:

• Submit the STR Registration and Business License application, pay fees, and upload required documents via novato.hdlgov.com or the Host Compliance portal.

4. Receive approvals:

• City reviews and issues STR Registration and Business License.
• Schedule/complete WUI inspection if applicable (property must pass).

5. Operate and remit taxes:

• Post the required unit notice.
• Remit TOT (14% total: 12% City + 2% County) quarterly through the City portal at novato.hdlgov.com.
• Maintain compliance (occupancy, parking, noise, waste, inspections, and Hotline response).

Source: www.novato.org/government/community-development/short-term-rental-program

Required Documents, Permits, Licenses, and Guidelines

• STR Registration (city) and Business License (city). Both are obtained via the City’s online portal. First‑year Business License fee: $174; renewals: $140 annually. Citation: www.novato.org/government/community-development/short-term-rental-program
• Off‑Street Parking Plan: list of total garage/driveway spaces; photos; guest instructions for shared access. Citation: www.novato.org/government/community-development/short-term-rental-program
• Property Inspection (self‑inspection is allowed; a $100 fee applies if City staff must complete it to the City’s satisfaction). Documentation requires photos of egress, CO/smoke detectors, interior guest signage, and designated off‑street parking. Citation: www.novato.org/government/community-development/short-term-rental-program
• Proof of Permanent Residency (3 of 5): motor vehicle registration; driver’s license; voter registration; utility bill; tax document showing homeowner’s tax exemption. Must show both the resident’s name and the STR address. Citation: www.novato.org/government/community-development/short-term-rental-program
• Posted STR Unit Notice (inside front door) including: 24‑hour emergency local contact name/phone; maximum occupancy; maximum vehicles; off‑street parking requirements; garbage disposal; fire safety and access roads; emergency/wildfire evacuation procedures (evacuation maps at novato.org/knowyourzone); emergency alert signup; noise ordinance limits. Citation: www.novato.org/government/community-development/short-term-rental-program
• Wildland Urban Interface (WUI) inspection (if in WUI zone): contact Novato Fire District at 415.878.2623. The City determines WUI status during application review. Citation: www.novato.org/government/community-development/short-term-rental-program
• Quarterly Transient Occupancy Tax (TOT) filings via City portal. Citation: www.novato.org/government/community-development/short-term-rental-program
• Background legal framework: Novato Municipal Code §8.12 (STR Program) and City Council Resolution No. 2021‑015. Citation: library.municode.com/ca/novato/codes/code_of_ordinances?nodeId=CHVIIILIGE_8-12SHRMRELIPR and www.novato.org/home/showpublisheddocument/33234/637709542200230000
• Noise rules: Novato Municipal Code §14.13 (quiet hours 10 p.m.–6 a.m.). Citation: library.municode.com/ca/novato/codes/code_of_ordinances?nodeId=CHXIVPORE_14-13NOUBNU

Specific City/County/State Regulations for STRs

City of Novato (Primary Rules)

• STR defined: rental of all or part of a residential home for fewer than 30 consecutive nights; commonly advertised on platforms like Airbnb, VRBO, or HomeAway. Citation: www.novato.org/government/community-development/short-term-rental-program
• Eligibility (Permanent Resident):
  • Owner or long‑term tenant; must be a natural person (not a corporation/other entity).
  • Occupies the home at least 60 days per year.
  • Provides off‑street parking (garage/driveway).
• Ineligible Properties:
  • Income‑ or deed‑restricted affordable housing.
  • ADUs permitted in 2017 or later.
  • Student housing, dormitories, single‑room occupancy.
  • Non‑residential principal uses.
  • Unpermitted structures (e.g., garages or accessory structures not permitted for residential use).
  • Recreational vehicles, motorhomes, trailers; tents, yurts, boats.
• Occupancy Limit:
  • Two people per bedroom, plus two additional people for any separate living space (e.g., living room with a roll‑out sofa). The occupancy limit includes permanent residents staying at the same time as guests.
  • Total occupancy may never exceed the off‑street parking limit. Citation: www.novato.org/government/community-development/short-term-rental-program
• Off‑Street Parking Requirements:
  • Must provide sufficient off‑street parking so no guest parks on the street.
  • Total STR occupancy cannot exceed the off‑street parking limit (vehicles capacity). The program imposes a maximum vehicle capacity (and therefore a maximum occupancy tied to parking); exact capacity is determined by available off‑street spaces. Citation: www.novato.org/government/community-development/short-term-rental-program
• Off‑Street Parking Plan (required in application): list spaces; include photos; include guest instructions for shared driveways/areas. Citation: www.novato.org/government/community-development/short-term-rental-program
• Property Inspection (required): egress; CO and smoke detectors; interior signage; designated off‑street parking. Self‑inspection permitted; $100 City inspection fee if required. Citation: www.novato.org/government/community-development/short-term-rental-program
• Signage (required inside unit): emergency contact; occupancy and vehicle limits; parking requirements; garbage; fire safety and access; emergency evacuation procedures; emergency alert signup; noise ordinance limits. Citation: www.novato.org/government/community-development/short-term-rental-program
• 24‑Hour Local Contact: must be reachable during rental periods and live within 30 miles of the STR. If the operator is off‑site, a neighbor or property manager may serve as the local contact. Citation: www.novato.org/government/community-development/short-term-rental-program
• WUI Inspections: properties in designated Urban Wildland Interface zones must pass a WUI inspection by Novato Fire District (call 415.878.2623). Citation: www.novato.org/government/community-development/short-term-rental-program
• Noise Ordinance: quiet hours 10 p.m.–6 a.m.; STRs and guests are subject to Novato’s noise/nuisance rules. Citation: library.municode.com/ca/novato/codes/code_of_ordinances?nodeId=CHXIVPORE_14-13NOUBNU
• Program Governance and Legal Basis: Novato Municipal Code §8.12; City Council Resolution No. 2021‑015. Citation: library.municode.com/ca/novato/codes/code_of_ordinances?nodeId=CHVIIILIGE_8-12SHRMRELIPR and www.novato.org/home/showpublisheddocument/33234/637709542200230000
• Enforcement and Hotline: Neighbors may report issues via email or a 24‑hour hotline managed by the City’s compliance partner. Citation: www.novato.org/government/community-development/short-term-rental-program and www.novato.org/Home/Components/News/News/6346/

County of Marin (Marin County Unincorporated STR Rules — Contextual, applies outside Novato city limits)

• Cap and Licenses: Marin County’s unincorporated areas have a countywide cap of 1,200 STR licenses. Existing operators had until July 1, 2025, to submit a complete application for the new license; new licenses are not granted until the City knows renewal demand. A lottery waiting list applies for new applicants who applied by Dec. 31. Citation: www.marinij.com/2025/01/05/marin-county-moves-to-implement-short-term-rental-rules/
• Fees: Primary‑residence STR license fee: $300; non‑primary STR license fee: $600. Citation: www.marinij.com/2025/01/05/marin-county-moves-to-implement-short-term-rental-rules/
• Utility/Water Documentation:
  • Private well: proof of water potability (bacteriological test within previous 12 months).
  • Public water provider: bills or documentation of usage; if >250 gallons/day, applicant must submit strategies to reduce use below that threshold; failure to reduce use triggers non‑renewal. Citation: www.marinij.com/2025/01/05/marin-county-moves-to-implement-short-term-rental-rules/
• Waste Management: bills from an authorized waste collector showing capacity to handle garbage, recyclables, and organics for the rental. Citation: www.marinij.com/2025/01/05/marin-county-moves-to-implement-short-term-rental-rules/
• Parking and Site Plan: schematic site plan showing property lines, buildings, driveway, and onsite parking spaces; parking requirements apply to new operators and may vary by street width and Public Works standards. Citation: www.marinij.com/2025/01/05/marin-county-moves-to-implement-short-term-rental-rules/
• Inspections: self‑certified building safety and fire safety inspections required; septic systems require inspection by a licensed professional within the previous 12 months. Citation: www.marinij.com/2025/01/05/marin-county-moves-to-implement-short-term-rental-rules/
• Community Caps: caps apply to 18 West Marin communities (e.g., Stinson Beach, Bolinas), with some currently at or above allowed levels; one license per property owner, with a two‑year transition for existing multi‑license owners. Citation: www.marinij.com/2025/01/05/marin-county-moves-to-implement-short-term-rental-rules/
• Official Marin County STR Page (reference): www.marincounty.gov/departments/cda/planning/long-range-planning-initiatives/short-term-rental-str

Important: These county rules apply only to unincorporated Marin County. If your Novato property is within city limits (the typical case for investors), the City of Novato’s STR ordinance governs. If your property is in unincorporated Marin (e.g., parts of Novato that lie outside city jurisdiction), comply with county rules.

State of California

• TOT: State law allows cities and counties to levy transient occupancy taxes on STRs; Novato requires operators to collect and remit TOT. Citation: www.novato.org/government/community-development/short-term-rental-program

Fees and Tax

• Business License (Novato): $174 first year; $140 renewals annually. Citation: www.novato.org/government/community-development/short-term-rental-program
• STR Registration Fees:
  • Property Registration: $180 first year; $69 renewals.
  • Application Review: $333 first year; $69 renewals.
  • Property Inspection: $106; the applicant may self‑conduct the inspection to avoid a $100 fee if City staff must complete it to City satisfaction.
• Transient Occupancy Tax: 14% total (City 12% + County 2%). Operators remit quarterly through the City’s online portal. The City collects both City and County portions and remits the 2% to the County. Citation: www.novato.org/government/community-development/short-term-rental-program

Contact Information (City of Novato and Key Service Providers)

• City of Novato General Phone: 415.899.8900
• City of Novato Mailing Address: 922 Machin Avenue, Novato, CA 94945
• City of Novato — Economic Development / STR Program (Email): econdev@novato.org
• Novato Fire District — STR WUI Inspections (Phone): 415.878.2623
• City STR and TOT Online Portal: novato.hdlgov.com
• Host Compliance Online Application Portal: secure.hostcompliance.com/novato-ca/permit-registration/welcome
• Neighborhood Issue Reporting / Hotline (Host Compliance): 415.301.3574 (also via hostcompliance.com/tips)

Source: www.novato.org/government/community-development/short-term-rental-program and www.novato.org/Home/Components/News/News/6346/

Source Pages and Official Links

• City of Novato — Short Term Rental Program: www.novato.org/government/community-development/short-term-rental-program
• City of Novato — News Release: