Are Short-Term Rentals Allowed in Pasadena?

Yes, short-term rentals are explicitly allowed in Pasadena, CA, but with strict regulatory requirements. Pasadena permits both hosted and un-hosted short-term rentals, but only for properties that qualify as the host's primary residence. Vacation rentals—properties where the owner does not reside for at least nine months per year—are prohibited throughout the city. This distinction is critical for investors, as it fundamentally limits STR opportunities to owner-occupied properties only.

How to Start a Short-Term Rental Business in Pasadena

Starting an STR business in Pasadena requires following a specific four-step process:

Step 1: Download and Complete Supplemental Application Forms

Download and complete all required supplemental forms prior to initiating your online application. These forms include necessary acknowledgments, property documentation, and neighborhood notification requirements.

Step 2: Complete All Required Documentation

This includes:

• Obtaining a notary acknowledgment on the application affidavit
• Taking photographs of your short-term rental property
• Providing proof of primary residency
• Distributing Neighborhood Notice to directly abutting property owners
• Completing any required inspections or self-certifications

Step 3: Apply Online for Your Short-Term Rental Permit

Submit your application through the online portal. A $117 permit fee applies, plus a 3% records management fee and payment processing fees. The application review typically takes 1-3 weeks, and you'll receive your permit number via email upon approval.

Step 4: Include Permit Number in All Listings and Maintain Compliance

Display your city-issued Short-Term Rental permit number prominently in all listings and advertisements. Maintain ongoing compliance through quarterly reporting and tax remittance.

Required Documents, Permits, Licenses, and Guidelines

Primary Permits and Documentation

• Short-Term Rental Permit: Required from the Planning & Community Development Department
• Transient Occupancy Registration Certificate: Required from the Finance Department
• Notarized Affidavit: Confirming primary residence status and compliance with safety requirements
• Primary Residency Documentation: Two of the following in the host's name: motor vehicle registration, driver's license, voter registration, tax documents, utility bills, or cellular phone bills

Property and Safety Requirements

• Fire and Life Safety Compliance: Smoke and carbon monoxide detectors, adequate means of egress
• Fire Extinguisher: Required on premises
• Property Inspection: Self-certification or third-party inspection may be allowed
• Neighborhood Notice: Mailed or delivered to directly abutting property owners
• Emergency Contact: 24-hour local responsible contact person or property management company

Permit Types

• Type 1 Permit: Hosted short-term rentals (no stay limits)
• Type 2 Permit: Un-hosted short-term rentals (90-day annual limit)

Specific Regulations for Short-Term Rentals

Occupancy and Use Limits

• Maximum Occupancy: 2 guests per bedroom plus 2 additional guests total
• Un-hosted Stay Limit: Maximum 90 days per calendar year (no limit for hosted stays)
• Commercial Events: Prohibited (weddings, banquets, corporate events, etc.)
• Property Types: Single-family residences, duplexes, condominiums, townhomes, and multi-family rental units (excluding covenant-restricted affordable units and Section 8 housing)

Operational Requirements

• Parking: On-site parking required; street parking prohibited for guests
• Signage: No exterior signs advertising the STR use
• Listing Display: City permit number must be visible in all advertisements
• Property Areas: Only approved residential areas may be rented (no garages, vehicles, storage sheds, tents, or temporary structures)

Tax Obligations

• Transient Occupancy Tax (TOT): 12.11% of gross receipts
• Tourism Business Improvement District (TBID) Assessment: 3.89% in year one (July 1, 2023 - June 30, 2024), then 4.89% for years two through ten (July 1, 2024 - June 30, 2033)

Taxable Receipts Include:

• Nightly and weekly rents
• Standard cleaning fees
• Pet fees
• Internet charges
• Late check-out fees
• Extra person fees
• Resort fees

Taxable Receipts Exclude:

• Refundable deposits
• Items subject to CA sales tax (such as ski passes or recreational activities)

Platform Collection Responsibilities

• VRBO: Collects both TOT and TBID on behalf of hosts (beginning April 1, 2025)
• AirBNB: Collects only TOT, not TBID
• Other Platforms: Hosts responsible for all tax collection and remittance

Quarterly Reporting Requirements

All hosts must submit quarterly reports regardless of platform usage or rental activity:

Reporting Periods and Deadlines:

• Q1 (Jan 1 - Mar 31): Due April 20th
• Q2 (Apr 1 - Jun 30): Due July 20th
• Q3 (Jul 1 - Sep 30): Due October 20th
• Q4 (Oct 1 - Dec 31): Due January 20th

Enforcement and Penalties

Violation Consequences

• Three Violations: Automatic permit suspension and potential revocation
• Daily Fines: Applied for ongoing violations
• Penalties: Begin accruing on the 21st day after deadline
• Permit Revocation: One-year waiting period before reapplication

Common Violations

• Failure to display permit numbers in listings
• Operating beyond 90-day limit for un-hosted stays
• Hosting commercial events
• Noise, parking, or trash complaints
• Failure to meet safety requirements
• Non-compliance with HOA/CC&R restrictions

Compliance Standards

Hosts must comply with:

• Pasadena Municipal Code Chapter 9.36 (Noise Restrictions)
• Pasadena Municipal Code Chapter 8.64 (Litter Control)
• All applicable HOA and CC&R regulations (city permits do not supersede private restrictions)

Contact Information

Primary STR Inquiries

• Email: STRPermits@CityofPasadena.net
• Planning & Community Development Department: (626) 744-6777

Tax and Remittance Questions

• Treasury Division: (626) 744-4538
• TBID Questions:
  • Kristin McGrath (Pasadena Convention & Visitors Bureau): kmcgrath@visitpasadena.com
  • Guille Nunez (City of Pasadena): gnunez@cityofpasadena.net

Code Enforcement and Complaints

• Property-Specific Concerns: (626) 744-8633
• Emergency Situations: 9-1-1

Physical Address

Pasadena City Hall 100 North Garfield Ave. Pasadena, CA 91101

Links to Source Pages

• City of Pasadena Short-Term Rental Regulations
• Pasadena Municipal Code Section 17.50.296
• Pasadena STR Application Portal
• Pasadena STR Quarterly Reporting
• Pasadena STR Supplemental Forms
• Pasadena STR Informational Brochure
• Ordinance No. 7317

This guide provides comprehensive information for STR investors considering the Pasadena market. The regulatory environment is well-established with clear requirements, but the primary residence limitation significantly impacts investment strategies compared to markets that allow vacation rental properties.