Redwood City's Short-Term Rentals: The Rules That Matter

Every city handles short-term rentals a little differently. In Redwood City, California, there are 6 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Occupancy Limits

Redwood City Municipal Code Chapter 42A limits short-term rental occupancy to two guests per bedroom plus two additional guests per stay, capped at ten guests total. STRs are restricted to the host's primary residence; second homes and investment properties are not permitted. Hosted stays (host on-site) have no annual day cap, while un-hosted stays are limited to 120 nights per calendar year. ADUs are prohibited from STR use unless they were registered with the City before January 1, 2020. Hosts must also designate a local contact who will respond to complaints whenever the host is away.

Key details: Per-Stay Limit: 2 guests per bedroom + 2, max 10 total. Un-hosted Day Cap: 120 nights per year. Hosted Day Cap: Unlimited. Primary Residence Only: Required (no second homes). ADU Restriction: Prohibited unless registered before Jan 1, 2020.

Operating outside Chapter 42A's occupancy or stay-type limits — exceeding ten guests, taking un-hosted bookings beyond 120 nights, hosting in a non-primary-residence, or running an unregistered ADU as an STR — is a violation enforceable by the Community Development Department and Code Enforcement. Sanctions include administrative citations, denial or revocation of the STR registration, and loss of the business license. Failing to collect or remit the 12% TOT is independently subject to back-taxes, penalties, and interest by the Finance Department. Hosting prohibited special events (weddings, corporate retreats) can trigger nuisance enforcement.

Insurance Requirements

Redwood City requires short-term rental hosts to carry a minimum of $1 million in liability insurance covering STR operations as part of registration under Municipal Code Chapter 42A. This is in addition to the program's $250 annual permit fee, $50 business license, indemnification of the City, and the 12% Transient Occupancy Tax. Major hosting platforms supply broadly similar protection (Airbnb's AirCover up to $1 million, Vrbo's Liability Insurance up to $1 million), but platform coverage applies only to bookings made through that platform and does not satisfy the City's requirement for hosts who take direct bookings or use multiple platforms.

Key details: Minimum Liability Insurance: $1,000,000. Indemnification: Hold-harmless required at registration. Permit Fee: $250 / year (STR Program). Business License: $50 / year. TOT Rate: 12%.

Operating an STR without the required $1 million in liability coverage is a violation of Chapter 42A and grounds for denial, suspension, or revocation of the STR registration by the Community Development Department. Beyond city enforcement, an underinsured loss can leave the host personally liable for guest injuries, neighbor property damage, or fire claims; California carriers may also deny claims when STR use was not disclosed under the policy's 'business pursuits' exclusion. Continuing to host after registration is suspended can result in additional administrative citations and loss of the business license, and may bar future re-application.

Parking Rules

STR guests in Redwood City must comply with all city parking rules. RVs may be parked on private property if registered as operable. Commercial vehicles over 6 feet high or 20 feet long are banned from residential streets.

Key details: RVs on Private Property: Allowed if registered and operable. Large Commercial Vehicles: Banned in residential areas (>6 ft tall or 20 ft long). Residential Permit Zones: 2-hour limit without permit (Mon-Fri 7 AM–6 PM). Vehicles: Must be in legal paved spaces and registered.

Parking plan non-compliance may affect STR permit renewal. Street parking violations: standard city fines.

Taxes & Fees

Redwood City charges 12% TOT on all STR stays under 30 days. TOT revenue is dedicated to the City's Affordable Housing Fund. Hosts must collect and remit TOT unless their platform collects it on their behalf.

Key details: TOT Rate: 12%. Applies To: Stays under 30 nights. Revenue Goes To: Affordable Housing Fund. Platform Collection: Airbnb may collect; verify your situation.

Non-remittance: back taxes + 10 to 25% penalty + interest. Willful evasion: misdemeanor. City audit authority.

Noise Rules

STR guests must comply with all Redwood City noise ordinances. A 24/7 complaint hotline exists for STR issues with a 1-hour response time commitment. Hosts are responsible for guest conduct.

Key details: Complaint Hotline: 24/7 (1-hour response). Weekday Quiet Hours: 10 PM – 7 AM. Weekend Quiet Hours: 11 PM – 7 AM. Host Liability: Responsible for guest compliance.

Noise violation at STR: $250 to $1,000. Multiple complaints: permit suspension/revocation. Host responsible for guest behavior.

Permit Requirements

Redwood City requires STR operators to obtain a permit and business license. STRs must be the host's primary residence. Unhosted stays are capped at 120 days/year. ADUs cannot be used as STRs unless registered before January 1, 2020.

Key details: Permit Required: Yes — Planning Division + Business License. Primary Residence: Required. Unhosted Cap: 120 days/year. ADUs: Banned (except pre-2020 registrations). Special Events: Expressly prohibited.

First violation: $250 fine. Second: $500. Third and beyond: $1,000. Repeat violators may have permits revoked and be barred from operating STRs for 1–2 years.

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

The Bottom Line

Redwood City's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Redwood City is broadly strict or permissive.

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