Gilroy, CA Accessory Structures: ADU Rental Restrictions (2026)

Gilroy City Code § 30.54.20 sets general requirements for every accessory dwelling unit and junior accessory dwelling unit in the city, and subsection (a) states the rental floor directly: an ADU shall not be rented for periods less than 30 days, and short-term rentals are prohibited outright, closing off use of a Gilroy ADU as a nightly or weekend vacation rental. Subsection (b) pairs this with a sale restriction: an ADU cannot be sold separately from the primary residential structure except as permitted by California Government Code Section 66341.

Subsection (c) makes both restrictions durable and enforceable against future owners: before the final building inspection for an ADU or junior ADU, the owner must record a deed restriction stating that the unit may not be rented for periods less than 30 days and may not be transferred or sold separately from the primary residence except as state law allows. Recording the restriction is a precondition of final inspection, not an optional compliance step, so a project cannot receive its final sign-off, and by extension its certificate of occupancy under subsection (k), until the deed restriction is on record.

Because the restriction runs with the land, it binds subsequent owners and tenants of the property, not just the original applicant, giving the city a recorded instrument to point to if a later owner tries to list the unit as a short-term rental. This 30-day floor is written into the ADU-specific standards rather than the city's general short-term rental rules, so it applies to every accessory dwelling unit citywide regardless of the zoning district or the size and configuration chosen under § 30.54.30.