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Santa Cruz, CA

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STR Regulations for Santa Cruz, California

Overview: Are Short-Term Rentals Allowed in Santa Cruz?

Short-term rentals are explicitly allowed in Santa Cruz, California, but with significant restrictions and requirements. The City of Santa Cruz permits short-term rentals through a regulated permit system, while Santa Cruz County (unincorporated areas) has its own separate regulations. Investors must understand that regulations differ between the incorporated city limits and unincorporated county areas. The City of Santa Cruz operates under a Residential STR Ordinance (Chapter 24.12, Part 18) that restricts new permits, focusing on owner-occupied "hosted" rentals, while the County allows both "vacation rentals" and "hosted rentals" with different requirements and caps.

What do Airbnb hosts actually earn in Santa Cruz?

Santa Cruz hosts earn a median $59,906/year with $373 ADR and 61% occupancy.

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See the full Santa Cruz market breakdown

How to Start a Short-Term Rental Business in Santa Cruz

City of Santa Cruz (Incorporated Areas)

Hosted STR Permits (Currently Available):

  • Apply online through the City's TOT system at tot.cityofsantacruz.com/primeweb
  • Must live in the home for more than 6 months per year
  • For multi-family properties, owner must live in one unit while renting another
  • 250 total hosted STR permits available on first-come, first-served basis
  • No waitlist currently exists for hosted permits

Non-Hosted STR Permits (Not Currently Available):

  • City is not issuing new non-hosted/non-owner occupied STR permits
  • Existing legally permitted non-hosted STRs may continue operating
  • Properties with single-family homes and ADUs are ineligible for STR permits

Santa Cruz County (Unincorporated Areas)

Vacation Rental Permits:

  • Entire home rental for stays under 30 days
  • Requires Vacation Rental Permit per County Code Section 13.10.694
  • Allowed in single-family homes, duplexes, or triplexes
  • No county-wide permit cap, but beachfront areas have specific limits

Hosted Rental Permits:

  • Rental of 1-2 bedrooms where owner stays on-site
  • Requires Hosted Rental Permit per County Code Section 13.10.690
  • County-wide cap of 250 hosted rental permits
  • Permits valid for five years

Required Documents, Permits, Licenses, and Guidelines

City of Santa Cruz Requirements

STR Permit Application Requirements:

  1. Site Plan - Show all buildings, parking locations and dimensions (must meet minimum parking: 1 space for studio/1-bedroom, 2 spaces for 2+ bedrooms)
  2. Floor Plan - Show all walls, room labels, indicate STR areas
  3. Color Photograph - Exterior photo with visible building address number
  4. Three Proofs of Principal Residency:
    • Santa Cruz County Assessor's Homeowners Exemption
    • Two additional forms (tax returns, bank statements, driver's license, voter registration, utility bills)

Additional Requirements:

  • STR permit fee (non-refundable, amount in Planning Fee Schedule)
  • Transient Occupancy Tax (TOT) Certificate
  • Enrollment in City's Rental Inspection Service (RIS)
  • Annual RIS fee payment

Santa Cruz County Requirements

Hosted Rental Permit Application:

  1. Hosted Rental Application Form (PLG155)
  2. Transient Occupancy Tax certificate or signed application from County Tax Collector
  3. Copy of rental/lease agreement or House Rules (for online platforms)
  4. Non-refundable application fee of $149.60

Vacation Rental Permit Application:

  1. Vacation Rental Application Form
  2. TOT certificate
  3. House Rules including minimum requirements
  4. Application fees vary by review level

House Rules Must Include:

  • Rental age requirements
  • Maximum number of guests
  • Vehicle limits
  • Noise restrictions
  • Food/cooking requirements
  • Pet policies
  • Prohibited events
  • Trash management protocols
  • Emergency evacuation instructions

Specific Regulations by Jurisdiction

City of Santa Cruz Municipal Regulations

Property Type Restrictions:

  • Multi-family properties may be eligible for STR permits
  • Properties with single-family homes AND ADUs are prohibited from STR permits
  • Existing legally-operating ADU STRs are grandfathered

Parking Requirements:

  • Must meet full compliance with current minimum parking requirements
  • 1 space per studio/1-bedroom residence
  • 2 spaces per residence with 2+ bedrooms

Application Review Process:

  • 30 calendar days for initial review
  • Additional 30-day cycles for resubmissions
  • Floor plans and site plans reviewed for unpermitted construction
  • Life-safety hazards referred to code compliance

Business License Requirement:

  • Not required unless more than 3 dwellings on parcel
  • Contact Revenue Division at 831-420-5070 for clarification

Santa Cruz County Regulations

Beachfront Neighborhood Caps:

  • Live Oak and Seacliff/Aptos Designated Areas: 15% of total parcels may have STR permits
  • Davenport/Swanton Designated Area: 10% of total parcels may have STR permits
  • 20% limit per block face in these areas

Guest Limits:

  • Vacation rentals: 2 overnight guests per bedroom plus 2 additional
  • Daytime guests: Twice the number of overnight guests
  • Hosted rentals: 3 guests per hosted bedroom

Dwelling Type Restrictions:

  • STRs allowed in all residential zone districts
  • NOT allowed in accessory structures, ADUs, affordable housing, balconies, porches, sheds, tents, RVs

Review Requirements:

  • Vacation rentals with <4 bedrooms: Level IV review (public notice)
  • Vacation rentals with 4+ bedrooms: Level V review (Zoning Administrator hearing)

California State-Level Regulations

Transient Occupancy Tax:

  • Santa Cruz County imposes 11% TOT on short-term rentals
  • Airbnb collects and remits TOT for unincorporated county areas
  • Hosts must complete TOT application with County Tax Collector

General State Framework:

  • Short-term rentals defined as stays under 30 days
  • Local municipalities retain authority to regulate STRs
  • Platform operators must comply with local regulations

Contact Information

City of Santa Cruz

Planning Department:

  • Contact: John Jezek, Associate Planner
  • Email: jjezek@santacruzca.gov
  • Phone: (831) 420-5305
  • Address: 809 Center Street, Room 101, Santa Cruz, CA 95060
  • Walk-in Hours: Monday-Thursday, 7:30-11:30 a.m.

Transient Occupancy Tax Questions:

  • Revenue Division: (831) 420-5070
  • Website: santacruzca.gov/Government/City-Departments/Finance/Licenses-Fees-and-Taxes

Code Compliance:

  • Website: santacruzca.gov/Government/City-Departments/Planning-and-Community-Development/Code-Compliance

Santa Cruz County

Planning Department:

Hosted Rental Applications:

Tax Collector:

  • Phone: (831) 454-2510
  • Email: ttc.webmail@santacruzcountyca.gov
  • Website: co.santa-cruz.ca.us/Departments/TaxCollector/TransientOccupancyTaxandTourismMarketingDistrict.aspx

Wait List Information:

Source Links

Official Government Sources

City of Santa Cruz:

Santa Cruz County:

State Resources:

Additional Resources

Airbnb Guidance:

Industry Resources:

Investment Considerations

Key Market Factors:

  • City of Santa Cruz has effectively closed new non-hosted STR permits
  • County unincorporated areas still offer opportunities but with caps
  • Beachfront areas have additional restrictions and competition
  • TOT rates are significant at 11% in county areas

Compliance Critical:

  • All applications reviewed for code violations
  • Life-safety issues can prevent permit issuance
  • Ongoing compliance monitoring required
  • Rental Inspection Service mandatory in city

Due Diligence Requirements:

  • Verify property zoning and restrictions
  • Confirm parking availability meets requirements
  • Review HOA/CC&R restrictions if applicable
  • Assess competition in specific neighborhoods
  • Calculate all fees and ongoing costs

This guide provides the regulatory framework for STR investment in Santa Cruz. Given the complexity and recent changes to regulations, investors should consult directly with planning departments before making property acquisitions or investment decisions.

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Santa Cruz

Market Saturation Score

036912
Mild Saturation
3/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
View Full Santa Cruz Market Analysis

Photos of Santa Cruz

Overview of Santa Cruz

Santa Cruz is a laid-back coastal city in northern Monterey Bay, sitting in Santa Cruz County, California, about 70 miles south of San Francisco and roughly 30 miles southwest of San Jose. With a population of approximately 65,000, it has long been known for its redwood-shaded neighborhoods, surf culture, and a walkable downtown that leans heavily into outdoor living. The city is best known for its iconic oceanfront amusement park and as the closest sandy gateway to the towering redwood forests of the Santa Cruz Mountains. Its mix of university energy from UC Santa Cruz, a thriving surf and skate scene, and easy access to both beach and forest gives it a distinct Pacific Coast identity that draws a steady stream of year-round visitors.

Just steps from the city center, the Santa Cruz Beach Boardwalk is one of the West Coast's last remaining seaside amusement parks, with a historic wooden roller coaster, a long arcaded promenade, and direct beach access that has been operating since the early twentieth century. It is by far the city's marquee attraction and tends to anchor the calendar for families and groups booking short-term stays.

A short drive north of downtown, Henry Cowell Redwoods State Park invites visitors into stands of old-growth coast redwoods along the San Lorenzo River, with shaded hiking loops and the towering trees of the Redwood Grove trail. The park sits about 10 minutes from the city center, making it an easy half-day excursion for travelers who want to pair a beach day with a forest walk.

Further along the coast, Natural Bridges State Beach is known for its sculpted rock arch, tide-pool exploration, and the seasonal gathering of monarch butterflies in the nearby eucalyptus grove. It lies just a few minutes west of the UC Santa Cruz campus and is popular with both casual visitors and nature-focused travelers.

Just up the coast, the small city of Capitola offers a colorful seaside village atmosphere, a sheltered beach, and a row of pastel-painted restaurants and shops overlooking Soquel Creek. It is only about a 10-minute drive east of Santa Cruz, making it a natural pairing for guests who want a quieter, more boutique-feeling afternoon without straying far from their rental.

For short-term-rental owners, Santa Cruz offers a compelling combination of reliable demand drivers: a nationally recognized amusement park, a university calendar that brings consistent family-visit traffic, easy redwood and beach access within a short drive, and a recognizable brand as a California beach town. The mix of marquee attractions and outdoor recreation, set within roughly an hour of both San Francisco and San Jose, helps the market perform across both peak summer seasons and quieter shoulder months when visitors come for hiking, surf, and coastal scenery.

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