Santa Cruz's Short-Term Rentals: The Rules That Matter

Every city handles short-term rentals a little differently. In Santa Cruz, California, there are 5 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.

Parking Rules

Santa Cruz IZO §24.12.1770(3) caps vehicles at one per one-bedroom unit, two per two- or three-bedroom unit, plus one additional vehicle per bedroom over three.

Key details: Code: §24.12.1770(3). 1-BR Cap: 1 vehicle. 2-3 BR Cap: 2 vehicles.

Parking-rule failures support permit suspension under §24.12.1785 if verified complaints accumulate.

This is not one of those rules that cities tend to ignore. Santa Cruz actively enforces its parking rules requirements.

Occupancy Limits

Overnight occupancy at a Santa Cruz short-term rental is capped at two persons per bedroom plus two additional persons. Only one rental agreement may be in effect at a time, vehicles are limited by bedroom count, and special events such as weddings and parties are prohibited.

Key details: Code Section: SCMC 24.12.1770. Max Overnight Occupancy: 2 per bedroom + 2. Special Events: Prohibited. Quiet Hours: 10:00 p.m. - 8:00 a.m..

Exceeding occupancy or violating operational standards is enforceable under SCMC 24.12.1790: first two violations in a year are infractions; three violations in one year escalate to a misdemeanor punishable by up to a $1,000 fine and/or six months in county jail.

Permit Requirements

Every short-term rental in the City of Santa Cruz must hold a short-term rental permit and a Transient Occupancy Tax certificate. New permits are limited to owner-occupied 'hosted' rentals, with a citywide cap of 250 hosted permits; no new non-hosted (non-owner-occupied) permits are issued.

Key details: Code Section: SCMC 24.12.1715. Hosted Permit Cap: 250 citywide. Non-Hosted Permits: No new permits issued. Permit Transferable: No (revocable, nontransferable).

Operating without a permit is an enforceable violation: the first two violations in a one-year period are infractions punishable by a fine; a third within one year is a misdemeanor (SCMC 24.12.1790).

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

Noise Rules

Santa Cruz IZO §24.12.1770 applies the §9.36 noise standards to short-term rentals and bans weddings, parties, and other large engagements. Quiet hours are 10:00 p.m. to 8:00 a.m. including all amplified noise.

Key details: Quiet Hours: 10 p.m. to 8 a.m.. Special Events: Prohibited. Manager Response: 30 min, within 20 mi.

Three or more verified complaints in 12 months can trigger permit revocation under §24.12.1785(1)(e). Citations follow §24.12.1790.

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

Taxes & Fees

Santa Cruz Municipal Code Ch. 3.28 imposes the Uniform Transient Occupancy Tax on accommodations rented for 30 consecutive days or less, including STRs, hotels, motels, and B&Bs.

Key details: Code: Ch. 3.28. Trigger: Rentals under 30 days. Required: Operator registration.

Misdemeanor under §3.28.150. Collected-but-unremitted tax can be recovered with penalties and interest, and the STR permit may be revoked.

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

The Bottom Line

Santa Cruz is tougher than many cities when it comes to short-term rentals. Out of the 5 rules covered here, 4 are rated strict. If you are a homeowner, renter, or business owner in Santa Cruz, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

Keep in mind that Santa Cruz can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.