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Santa Monica, CA

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STR Regulations for Santa Monica, California

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

Yes, but with strict limitations. Santa Monica allows one specific type of short-term rental called "Home-Sharing," while prohibiting "Vacation Rentals." This distinction is fundamental to understanding the market:

  • Home-Sharing (Allowed): Rental of 30 consecutive days or less of one or more bedrooms in your primary residence, provided you live on-site throughout the guest's stay
  • Vacation Rentals (Prohibited): Rental of 30 consecutive days or less of an entire home or unit for exclusive transient use when you're not present

Santa Monica has maintained this framework since adopting the Home-Sharing Ordinance on June 12, 2015, with significant amendments on September 24, 2019. The city has actively defended this regulatory approach, including successfully defending against legal challenges from major platforms like Airbnb and VRBO in federal court.

What do Airbnb hosts actually earn in Santa Monica?

Santa Monica hosts earn a median $51,736/year with $239 ADR and 81% occupancy.

Top performers pull in $75,911+ per year.

See the full Santa Monica market breakdown

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

Step 1: Determine Eligibility

To qualify for home-sharing, you must:

  • Be a natural person (not a company)
  • Own the property OR be a long-term resident who has resided in the unit for the prior 12 months and intends to reside for the 12 months following your permit application
  • Use your primary residence only
  • Be present throughout the guest's stay

Step 2: Application Process

Santa Monica uses a single application for both required permits:

  • Home-Sharing Permit: $100 application fee
  • Business License: $4 state fee
  • Total Initial Cost: $104
  • Annual Renewal: $50 for permit renewal

Step 3: Required Documentation

Your application must include:

  • Proof that the address is your primary residence
  • Your residency status (owner or long-term tenant)
  • Type and size of the dwelling unit
  • Number of bedrooms and maximum guest capacity
  • Insurance coverage verification
  • Contact information for all designated hosts living in the home
  • Signed certification agreeing to comply with all city regulations

Step 4: Submit Application

Applications are processed through the Planning & Community Development department. The single application obtains both permits simultaneously.

Required Documents, Permits, and Licenses

Mandatory Permits and Licenses

  1. Home-Sharing Permit (City of Santa Monica)

  2. Business License (State of California)

    • Initial fee: $4
    • Required for all home-sharing operations

Supporting Documentation

  • Primary residence verification
  • Insurance documentation
  • Host contact information
  • Property details (bedroom count, occupancy limits)
  • Compliance certification

Legal Framework Documents

  • Home-Sharing Ordinance No. 2616 (CCS) adopted September 24, 2019: [PDF Link](/uploadedFiles/Departments/PCD/Permits/Home share O-2616.pdf)
  • Administrative Rules and Regulations: [PDF Link](/uploadedFiles/Departments/PCD/Santa Monica HomeSharing Rules PDF July 2017(1).pdf)
  • Municipal Code Chapter 6.20: Home-Sharing Ordinance provisions

Specific Regulations by Jurisdiction

City of Santa Monica - Home-Sharing Ordinance

Occupancy Limits

  • Total Occupancy: Lesser of 10 total people, 1 person per 200 square feet, or 2 adults per bedroom
  • Host Inclusion: Count includes the host and all permanent residents
  • Children: Not counted toward the 2 adults per bedroom limit

Booking Restrictions

  • Maximum 2 groups of visitors at any time
  • Maximum 2 listings per property
  • Must be 30 days or less per stay
  • Host must be present throughout the entire stay

Guest House Provisions

Pre-March 31, 2017 Guest Houses:

  • Allowed if on single-family parcel (as classified by L.A. County Assessor)
  • Host must reside in either main house or guest house during home-share
  • Cannot be a "Rent Control Bootleg Unit"

Post-March 31, 2017 Guest Houses:

  • Allowed only if host resides in the guest house during home-share
  • Cannot reside in main house while using guest house for home-sharing

Parking Limitations

  • 1 vehicle per rented bedroom
  • In preferential parking zones: maximum 2 visitor permits total

Rent-Controlled Units

  • Home-sharing allowed provided rental income does not exceed Maximum Allowable Rent
  • Coordinate with Rent Control Board for compliance

Los Angeles County - Assessment Requirements

  • Guest house eligibility depends on L.A. County Assessor's parcel classification
  • Single-family vs. multi-family classification affects guest house home-sharing eligibility

State of California - Business Licensing

  • $4 state business license fee required
  • State regulations don't supersede local home-sharing restrictions
  • Platforms must comply with local licensing requirements

Tax Requirements and Financial Obligations

Business License Tax (City of Santa Monica)

Home-sharing is classified as Tax Rate Group III (Services):

  • Base Rate: $75 on first $60,000 of gross receipts
  • Overage Rate: 0.3% for every $1,000 above $60,000
  • Calculation Example: $75,000 gross receipts = $75 (first $60K) + $45 (remaining $15K) = $120 total tax

Important Notes:

  • Based on gross receipts, not net income
  • No deductions allowed for expenses
  • Small Business Exemption available for $40,000 or less annual gross receipts

Transient Occupancy Tax (TOT)

  • Rate: 14% of total rental amount including cleaning fees
  • Exemptions: Federal, State, or City of Santa Monica employees on official business only
  • Collection: Host responsible for collection and monthly remittance
  • Platform Collection: Major platforms like Airbnb collect and remit automatically

Additional Financial Obligations

  • Monthly TOT payments due to Treasury Operations
  • Annual business license tax filing and payment
  • Insurance requirements (specific coverage amounts not detailed in provided content)

Contact Information for Local Authorities

Planning & Community Development Department

General Home-Sharing Information:

Business License Division

Business License Applications and Tax Questions:

  • Phone: (310) 458-8745
  • Email: business.license@smgov.net

Finance - Treasury Operations

Transient Occupancy Tax Questions:

  • Phone: (310) 458-8741
  • Email: treasury@smgov.net

Rent Control Board

Rent Control Compliance Questions:

Code Enforcement Division

Violations and Complaints:

  • Phone: (310) 458-4984
  • Email: code.enforcement@smgov.net
  • Online Reporting: www.smgov.net/sm_go.aspx
  • Mailing Address: 1685 Main Street, Room 111, Santa Monica, CA 90401

Communications Department

Media and Press Inquiries:

  • Contact: Constance Farrell, Communications & Public Information Manager
  • Email: Constance.Farrell@santamonica.gov

Enforcement and Penalties

Administrative Fines

  • Initial Penalty: $1,000 per day per violation
  • Increased Penalties: Fines increase for continued violations
  • Additional Costs: Investigation costs may be added
  • Legal Action: Non-compliance may result in referral to City Attorney's Office

Prohibited Activities

  • Advertising unlicensed vacation rentals
  • Operating vacation rentals (un-hosted short-term rentals)
  • Processing transactions for unlicensed properties (for platforms)
  • Exceeding occupancy limits
  • Violating parking restrictions

Investigation Process

  • Complaints can be made anonymously
  • Code enforcement investigations include property visits and evidence gathering
  • Administrative citations issued for violations

Zoning and Land Use Considerations

Applicable Districts

  • Home-sharing ordinance applies citywide to all residential units
  • Includes single-family homes, condominiums, and apartments
  • No zoning district exceptions

Land Use Compliance

  • Article 9 of Municipal Code: Land Use and Zoning Ordinance
  • Article 8 of Municipal Code: Construction, design, and maintenance standards
  • Hosts must ensure listings comply with zoning requirements and building standards

Additional Compliance Considerations

Private Agreements

  • Home-sharing ordinance does not override:
    • Homeowners Association (HOA) rules and CC&Rs
    • Rental lease agreements
    • Condominium board rules
    • Co-op regulations

Action Required: Review all private agreements before applying for permits

Platform Compliance

  • Major platforms (Airbnb, VRBO) must verify proper licensing
  • Platforms collect and remit TOT automatically
  • Platforms required to ensure transactions involve licensed properties only
  • Format for permit numbers on listings: xxxxxx (6 digits)

Ongoing Requirements

  • Annual permit renewal mandatory
  • Monthly TOT remittance required
  • Compliance with all posted regulations
  • Maintain current insurance coverage
  • Report changes in host status or property details

Links to Source Pages

Official City Resources

  1. Home-Sharing Ordinance Main Page: https://www.smgov.net/Departments/PCD/Permits/Short-Term-Rental-Home-Share-Ordinance/
  2. Home-Sharing Registration Packet: https://www.santamonica.gov/uploadedFiles/APKT-Home-Share(2).pdf
  3. Home-Sharing Ordinance No. 2616 (PDF): [https://www.santamonica.gov/uploadedFiles/Departments/PCD/Permits/Home share O-2616.pdf](https://www.santamonica.gov/uploadedFiles/Departments/PCD/Permits/Home share O-2616.pdf)
  4. Administrative Rules and Regulations (PDF): [https://www.santamonica.gov/uploadedFiles/Departments/PCD/Santa Monica HomeSharing Rules PDF July 2017(1).pdf](https://www.santamonica.gov/uploadedFiles/Departments/PCD/Santa Monica HomeSharing Rules PDF July 2017(1).pdf)
  5. Home-Sharing Registry: https://data.smgov.net/browse?q=Home-Sharing%20Registry&sortBy=relevance

Legal and Court Documents

  1. Ninth Circuit Court Decision: https://www.santamonica.gov/Media/Default/Attorney/Airbnb%20Decision.pdf
  2. Press Release - Ordinance Upheld: https://www.santamonica.gov/press/2019/08/19/santa-monica-home-sharing-law-stands-after-challenge-by-airbnb-inc-and-homeaway-com

Platform Resources

  1. Airbnb Santa Monica Guide: https://www.airbnb.com/help/article/908

Municipal Code and Related Resources

  1. Santa Monica Municipal Code: https://www.qcode.us/codes/santamonica/
  2. Rent Control Board: https://www.smgov.net/rentcontrol/

Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Investors should consult with local authorities and legal professionals to ensure full compliance with all applicable regulations. The regulatory landscape for short-term rentals in Santa Monica is actively enforced and subject to change.

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Santa Monica

Market Saturation Score

036912
Low Saturation
1/ 12
months with declining YoY revenue
0–1 declining months: minimal saturation pressure — revenue trends are stable.
View Full Santa Monica Market Analysis

Photos of Santa Monica

Overview of Santa Monica

Santa Monica is a coastal city in Los Angeles County, California, with a population of approximately 90,000 residents. Known for its laid-back beach culture and iconic shoreline, the city serves as a popular gateway to the greater Los Angeles area and offers a walkable, sun-soaked alternative to the busier inland neighborhoods of LA. Located about fifteen miles west of downtown Los Angeles, Santa Monica blends small-city charm with big-city access, drawing millions of visitors each year to its famous pier, beaches, and shopping districts.

The Santa Monica Pier is the city's most recognizable landmark and a defining feature of the downtown waterfront. Extending out over the Pacific Ocean near the foot of Colorado Avenue, the pier is home to the Pacific Park amusement park with its solar-powered Ferris wheel, a small aquarium, restaurants, and arcades. The pier is essentially at the heart of the city, walkable from most downtown hotels and short-term rentals, and remains free to enter.

Just inland from the pier, the Third Street Promenade is a pedestrian-only outdoor shopping and dining district that has anchored Santa Monica's downtown for decades. Lined with retail stores, restaurants, street performers, and cinemas, the Promenade regularly hosts a weekly farmers' market and serves as a lively evening gathering place. Visitors can walk from the Promenade directly to the pier and the beach in just a few minutes, making the area a self-contained entertainment hub.

North of the pier, Palisades Park stretches more than a mile along the coastal bluffs, offering clifftop pathways with sweeping views of the ocean, the pier, and on clear days the distant outline of Catalina Island. The park, which dates to the early twentieth century, is dotted with benches, mature palm trees, and public art, and it connects directly to the beachside path that runs south toward Venice and Marina del Rey.

A short drive inland, the Getty Center sits in the Brentwood neighborhood of Los Angeles, roughly fifteen minutes from downtown Santa Monica. The hilltop campus of the J. Paul Getty Museum showcases European paintings, decorative arts, and photography, surrounded by Richard Meier's modernist buildings and the Central Garden designed by Robert Irwin. General admission to the museum is free, though parking carries a fee.

For short-term rental owners and guests alike, Santa Monica offers a rare combination of beachfront identity, walkable urban amenities, and proximity to the broader Los Angeles region's cultural and entertainment draws. Whether visitors come for the pier and the surf, the shopping and dining of the Promenade, or as a base for day trips to Malibu, downtown LA, or the museum-rich Westside, the city provides a year-round, internationally recognized destination that supports steady demand for well-located accommodations.

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