Short-Term Rentals in Daly City, CA

If you live in Daly City or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Daly City has 5 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Night Caps

Daly City caps un-hosted short-term rental stays (host off-site) at 100 days per year. Hosted stays, where the host remains on-site during the guest's stay, face no annual limit.

Key details: Un-hosted Cap: 100 days per year maximum. Hosted Stays: No annual limit. Hosted Stay Defined: Host on-site (except daytime/work hours). Un-hosted Stay Defined: Host off-site during guest's stay. Verification: Stay records submitted at annual renewal.

Exceeding 100 un-hosted rental days per year violates Section 5.92.050.C. Violations count toward the three-strike renewal bar in Section 5.92.080.B and can lead to permit suspension or revocation, administrative fines under Chapter 8.16, and repayment of illegally obtained rental revenue.

Primary-Residence-Only Rule

Daly City allows short-term rentals only in the host's primary residence, where the host lives at least 265 days per year. Non-owner-occupied vacation rentals are prohibited citywide, and STRs are banned in income-restricted units and on any property with an ADU or junior ADU.

Key details: Primary Residence: Required - host lives there 265+ days/year. Vacation Rentals: Prohibited citywide. Eligible Housing: Single-family, condo, duplex, townhome, multi-unit (host's unit only). Income-Restricted Units: STRs not permitted. Properties with ADU/JADU: STRs not permitted.

Operating a vacation rental (a non-primary-residence STR), hosting in an income-restricted unit, or hosting on a property with an ADU/JADU violates Section 5.92.040 and exposes the operator to administrative fines under Chapter 8.16, permit denial or revocation, and disgorgement of illegal rental revenue under Section 5.92.080.

Compared to other cities, Daly City takes a harder line on primary-residence-only rule. The enforcement and penalty structure reflects that.

Occupancy Limits

Daly City caps short-term rental occupancy at two guests per bedroom plus two additional guests at one time, and limits each property to one booking per day. Un-hosted stays are further capped at 100 days per year.

Key details: Guest Cap: 2 guests per bedroom + 2 additional. Bookings: 1 booking per property per day. Un-hosted Stays: Max 100 days per year. Hosted Stays: No annual limit. Parking: Existing on-site spaces must be available to guests.

Exceeding the guest cap or booking limit is a violation of Chapter 5.92. Three violations between permit issuance and the next renewal period make the property ineligible for permit renewal that year, and the City may suspend or revoke the permit and impose administrative fines under Chapter 8.16 of the Municipal Code.

This is one of the stricter rules in Daly City's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Short-Term Rental Parking Rules

Daly City STRs must provide off-street parking sufficient to avoid burdening the public right-of-way under Chapter 5.92 and Title 14 zoning; Daly City's narrow Westlake streets and posted permit zones make compliance with the city's residential parking rules under Title 10 critical.

Key details: Off-street spaces (R-1 baseline): 2 spaces typical (Title 14 zoning). STR authority: Daly City Municipal Code Chapter 5.92. Street-parking rules: Daly City Municipal Code Title 10. 72-hour rule: Vehicles must move every 72 hours (Title 10).

Parking complaints tied to an STR, blocking driveways, parking in fire lanes, ignoring street-sweeping signs, or storing extra guest vehicles in the right-of-way, are enforceable under Title 10 and can be cited as Chapter 5.92 permit violations, with repeat issues grounds for revocation.

Short-Term Rental Permits

Daly City requires both a Short-Term Rental Permit from the Planning Department and a business license (with a Transient Occupancy Registration Certificate) from the Finance Department before renting any home for 30 consecutive days or less. The new-permit fee is $750.00 and both credentials expire September 30 each year.

Key details: STR Permit: Required from Planning Department. Business License + TOT Certificate: Required from Finance Department. New Permit Fee: $750.00. Renewal Fee: $142.50. Business License: Starting at $110.00.

Operating a short-term rental without the required permit and business license violates Chapter 5.92 and subjects the operator to administrative fines and penalties under Chapter 8.16 (Property Maintenance and Nuisance Abatement), plus civil injunctions, license revocation, and an order to pay back transient occupancy taxes and disgorge illegally obtained rental revenue under Section 5.92.080.

The Bottom Line

Daly City is tougher than many cities when it comes to short-term rentals. Out of the 5 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Daly City, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

This guide is based on Daly City's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.