Is Airbnb legal in Santa Monica?

Airbnb Regulations in Santa Monica: What Hosts Need to Know

Santa Monica has implemented stringent regulations governing short-term rentals (STRs), particularly targeting platforms like Airbnb. Here’s a brief overview of the key rules and requirements that prospective hosts must be aware of to operate legally in this coastal city.

Permitting and Licensing

1. Home-Sharing Permit: Hosts must obtain a Home-Sharing Permit from the Santa Monica Planning & Community Development Department. This allows for renting out rooms in the primary residence while the host is on-site. A $100 fee covers the permit for the first two years.

2. Business License: A Business License is also required, with a minimum tax of $75 per year based on gross rental income.

Types of Rentals Allowed

• Hosted Rentals: Hosts can rent out individual rooms in their primary residence if they are present during the guest's stay, for stays of less than 30 consecutive nights.
• Unhosted Rentals: Renting out an entire home or unit where the host is not present is strictly prohibited.

Tax Obligations

Santa Monica imposes a 14% Transient Occupancy Tax (TOT) on rental income for stays under 30 nights. Additionally, there is a $2 per night fee that hosts must collect from guests. It is mandatory for hosts to register with the city’s Finance Department for this tax and remit it regularly.

Occupancy and Parking Regulations

• Occupancy Limits: The maximum number of guests (including residents) is capped at 10, with a limit of 1 guest per 200 square feet of the property.
• Parking Requirements: Hosts must provide one designated parking space per bedroom rented. For instance, a three-bedroom unit must have three parking spots available.

Safety and Nuisance Regulations

• Properties must comply with health and safety standards, including the installation of working smoke detectors in every bedroom and common area.
• Hosts are responsible for their guests' behavior, preventing disturbances such as loud parties or excessive noise.

Enforcement and Penalties

Santa Monica has a proactive enforcement mechanism for STR regulations. Violations can result in substantial fines exceeding $1,000 per day for non-compliance. The city encourages residents to report illegal rentals, and it can serve as a strict deterrent for potential hosts.

Conclusion

While Santa Monica has potential for short-term rental income, the regulatory environment is complex and strictly enforced. Hosts are urged to conduct thorough research on current laws, obtain required permits, and maintain compliance with all regulations to operate successfully within the local framework. For more detailed information, hosts should refer to the Santa Monica official website or contact the Planning and Community Development Department.