Is Airbnb legal in Santa Clara?

As of July 25, 2023, Santa Clara, California, has implemented regulations regarding short-term rentals (STRs) such as Airbnb and VRBO through Local Law 01-2023. Here are the key elements of these regulations:

1. Permitting Requirements: All STR hosts must obtain a permit to operate legally. This includes submitting detailed information about the rental property—including floor plans, proof of insurance, and compliance with local regulations. The cost of the permit is $150 per rental unit, and they must be renewed annually.

2. Occupancy Limits: There are strict limitations on the number of short-term rentals that can be listed in any zoning district, capped at 5% of all residential properties. This measure aims to manage the concentration of STRs and balance tourism with local residents' quality of life.

3. Transient Occupancy Tax: Hosts are required to charge a Transient Occupancy Tax (TOT). In unincorporated Santa Clara County, this tax is set at 10% of the rental price, but the rate within Santa Clara city limits is still being finalized. Hosts are responsible for collecting this tax from guests and remitting it to the city or county.

4. Compliance and Enforcement: The city intends to focus on education and compliance rather than immediate punitive measures. Initial fines for violations start at $350, escalating for repeat offenses. The goal is to inform hosts of legal requirements while monitoring compliance.

5. Regulations on Property Management: Hosts must also adhere to regulations related to noise, parking, trash disposal, and must ensure that properties meet safety standards, such as having smoke detectors and fire extinguishers.

6. Continuing Development: As the regulations are in development, prospective hosts are encouraged to start preparing their properties according to anticipated requirements, actively participate in host communities, and keep abreast of changes.

In summary, Santa Clara's new STR regulations emphasize a structured approach to managing short-term rentals, balancing the needs of hosts and the surrounding community, while ensuring safety and compliance with financial obligations.