Short-Term Rentals in Daly City, CA: What Residents Actually Need to Know

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 11 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Extended Home Share

Daly City's STR ordinance applies only to stays of 30 consecutive days or less. Any longer stay falls outside DCMC Chapter 5.92 and instead becomes a residential tenancy subject to California state law including AB 1482 just-cause and rent caps. Hosted home-shares within 30 days are unlimited; un-hosted shares are capped at 100 days/year.

Key details: STR threshold: 30 consecutive days or less. Hosted long-stay: No annual day cap (within STR window). Un-hosted long-stay: Counts toward 100-day annual cap. >30-day stays: Become residential tenancy under state law. AB 1482: 5%+CPI cap, just-cause once stay >30 days.

If a 'home-share' exceeds 30 consecutive days it is not covered by the STR permit - the host is instead exposed to AB 1482 just-cause protections and cannot terminate the tenancy at will. Conversely, structuring back-to-back STR bookings beyond the 100-day un-hosted cap or chaining bookings to avoid tenancy law can trigger Code Enforcement action under Chapter 5.92. Failure to remit TOT for any covered stay is enforced under DCMC Chapter 3.32.

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.

Host Presence Rule

Daly City distinguishes hosted from un-hosted short-term rentals. Hosted stays (host on-site during the rental) have no day cap. Un-hosted stays (host absent) are limited to a maximum of 100 days per calendar year per DCMC Chapter 5.92.

Key details: Hosted stays: No day cap. Un-hosted cap: 100 days/year maximum. Occupancy cap: 2 guests/bedroom + 2 extra per stay. Bookings per day: One booking per property per day. Local contact: Required 24/7, cannot be the host.

Exceeding 100 un-hosted nights, double-booking the property in a single day, or exceeding the per-bedroom occupancy cap are violations of DCMC Chapter 5.92. Code Enforcement uses booking-data audits via HostCompliance plus the 24/7 complaint hotline (650-275-5899) to track day counts. Documented overages can lead to permit revocation, administrative citations, and denial of renewal.

Insurance Requirements

Daly City Chapter 5.92 requires STR hosts to carry liability insurance covering the rental use; the city's published guide directs applicants to attach a certificate of insurance with the permit application.

Key details: Permit authority: Daly City Municipal Code Chapter 5.92. Typical coverage: Liability policy covering short-term rental use. Platform coverage: Airbnb AirCover / Vrbo Liability Insurance often used as supplement. Homeowner's policy: Standard HO-3 usually excludes STR commercial use.

Operating without required liability coverage breaches the STR permit conditions under Chapter 5.92 and is grounds for permit denial, suspension, or revocation. Uninsured operation also exposes the host personally to any guest-injury or property-damage claim.

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.

Registration Rules

Daly City STR permits expire September 30 each year with the associated business license and must be renewed annually ($142.50). The permit cannot be transferred, does not run with the land, and automatically expires if the property is sold or transferred.

Key details: Expiration: September 30 annually (with business license). Renewal Fee: $142.50 (new permit: $750.00). Transferable: No - expires automatically on sale or transfer. Valid Location: Original short-term rental site only. Renewal Conditions: TOT paid, year of compliance, updated info, records submitted.

Operating after the permit expires, or attempting to transfer a permit to a new owner or address, violates Chapter 5.92. An expired or transferred permit means the rental is unpermitted, exposing the operator to administrative fines under Chapter 8.16 and the enforcement remedies in Section 5.92.080, including disgorgement of 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.

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.

Noise Rules

Daly City STRs must comply with the citywide noise ordinance and with Chapter 5.92's good-neighbor requirement, including a designated 24-hour local responsible contact who must respond to noise complaints.

Key details: Code authority: Daly City Municipal Code Title 8 and Chapter 5.92. 24/7 local contact: Required under Chapter 5.92. Typical quiet hours: 10:00 p.m. - 7:00 a.m. (Title 8). State backstop: California Civil Code 3479 (private nuisance).

Substantiated noise complaints — particularly two or more verified incidents — can lead to permit revocation under Chapter 5.92, administrative citations under Title 8, and civil nuisance liability under Civil Code 3479. The local contact's failure to respond is itself a permit violation.

Taxes & Fees

Daly City short-term rental hosts must pay a quarterly Transient Occupancy Tax under Municipal Code Chapter 3.32, hold a city business license (minimum $110/year), and obtain an STR permit ($750 new, $142.50 renewal) under Chapter 5.92.

Key details: STR permit (new): $750.00 (Chapter 5.92). STR permit (renewal): $142.50/year. Business license minimum: $110.00/year. TOT authority: Daly City Municipal Code Chapter 3.32. TOT filing: Quarterly, via HdL Lodging Tax Processing Center.

Operating an STR without a permit, business license, or current TOT registration is a violation of Chapter 5.92 and Chapter 3.32 and can result in permit denial/revocation, back taxes plus interest and penalties under Chapter 3.32, and administrative citations. The city may also pursue cost recovery for enforcement.

Permit Requirements

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.

This is not one of those rules that cities tend to ignore. Daly City actively enforces its permit requirements requirements.

The Bottom Line

Daly City is tougher than many cities when it comes to short-term rentals. Out of the 11 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.