Short-term Vacation Rentals

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For those homeowners operating a short-term vacation rental (30 days or less), they are also required to complete a Homeowners Application in order to obtain a vacation rental permit (which is included in the business license).

For homeowners operating a vacation rental in a homeowner's association (HOA), Ordinance #781 was certified on October 12, 2016 and became effective 30 days thereafter on November 11, 2016. This ordinance requires vacation rental units located in any area governed by a homeowners association or community association and subject to covenants, conditions, and restrictions (CC&Rs), the owner or the owner's authorized agent or representative must additionally submit a letter from the association's governing board stating that either the CC&Rs do not regulate such vacation rentals, or that vacation rentals are not prohibited at the proposed unit by the CC&Rs. This letter must be submitted along with the business license application/renewal and the vacation rental application/renewal.

Resolution 2017-10 was certified and became effective on March 22, 2017. The application and registration fee for a new or renewal vacation rental permit was increased to $415/year.

Ordinance #792 was certified on April 12, 2017 and becomes effective 30 days thereafter on May 12, 2017. This ordinance provides further definition and clarification to include:

  • apartment buildings (multiple-family attached building) with five (5) or more units under common (the same) ownership will not be issued a vacation rental permit.
  • vacation rental units subject to CC&Rs, but not within an HOA, require a copy of the CC&Rs to be submitted with the application to determine if there is a short term vacation rental prohibition.
  • the City must conduct a health and safety inspection of the proposed vacation rental unit prior to issuing a new vacation rental permit and prior to issuing any renewal vacation rental permit.
  • once the vacation rental permit is issued, all residences within 100 feet of the property line will be mailed a notification of a neighboring vacation rental. Note - during the first year of this ordinance, neighbors of all vacation permit renewals will also be mailed a notification.

Effective July 11, 2017, which is 60 days after Ordinance #792 becomes effective, any vacation rental unit operating without a permit shall cease operations. Resolution 2017-10 includes these fines:

  • If the vacation rental continues to operate thereafter without a vacation rental permit, the property owner may be fined up to $5000 each time the unit is rented until such time as a vacation rental permit is obtained from the City.
  • The City may impose a fine up to $500 per occurrence for failing to respond to calls or complaints regarding the condition, operation or conduct of occupants and/or guests of the vacation rental unit in a timely manner, or failing to be available twenty-four (24) hours/day, seven (7) days/week for the purpose of responding within forty-five (45) minutes to complaints.
  • The City may impose a fine up to $500 for lodging a false complaint regarding the condition, operation or conduct of occupants/guests of the vacation rental unit.
  • Except as noted above, the City may impose a fine up to $1000.

Property Management Companies managing vacation rentals are required to obtain a business license for not only their property management firm, but also for the individual properties they manage. These forms need to be completed:

Per the Municipal Code, the number of occupants allowed to occupy any given vacation rental unit is limited as follows:

Number of Bedrooms

Total of Overnight* Occupants

MAXIMUM NUMBER OF Daytime** Occupants (Including Number of Overnight Occupants)

0—Studio

2

8

1

2

8

2

4

8

3

6

12

4

8

16

5

10

18

6

12

18

7

14

18

* 10:01 pm - 6:59 am; ** 7:00 am-10:00 pm

 

Prior to permitting occupancy of a vacation rental unit by a transient, the owner or the owner’s authorized agent or representative shall: (a) obtain the name, address, and a copy of a valid government identification of the responsible person; (b) provide information about the vacation rental regulations; and (c) require such responsible person to execute a formal acknowledgement that he or she is legally responsible for compliance by all occupants of the vacation rental unit and their guests with all applicable laws, rules and regulations pertaining to the use and occupancy of the vacation rental unit.

 Once the permit is issued, these documents are required to be posted in the vacation rental:

For short-term rentals, TOT return is due at the end of the month for the previous month's rentals, e.g., January TOT is due at the end of February. The current TOT rate is 12%.

Frequently Asked Facts about TOT are included, please see TOT Reminders.