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Redwood City, CA Rental Property Rules: Rental Registration (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Governing section
City Code Sec. 32.105
Threshold
4+ rental units triggers the license
Annual fee
$90, effective July 1, 2025
Per-unit tax
$31 per rental unit
Late penalty
10%/month, capped at 100%
Issuing office
Director of Finance

Summary

Redwood City requires a landlord who rents four or more dwelling units to obtain a business license before operating, under City Code Section 32.105. The license carries an annual registration fee plus a per-unit incremental tax, and applies on top of any short-term rental registration.

RENTAL (RESIDENTIAL): Any business that manages, operates, leases, rents, or provides use of any dwelling unit, including an apartment, house, duplex, hotel, motel, mobile home park, rooming or boardinghouse, to another individual or entity for compensation. For purposes hereof, a business that manages, operates, leases, rents, or provides use of a total of three (3) or fewer dwelling units for compensation in the City shall not be deemed a residential rental business for purposes of this Article. ... Sec. 32.105. - REQUIRED: There are hereby imposed upon the businesses, trades, professions, callings and occupations specified in this Article license taxes in the amounts hereinafter prescribed. It shall be unlawful for any person to transact or carry on any business, trade, profession, calling or occupation in the City without first having obtained a license from the Director so to do or without complying with any and all applicable provisions of this Article.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Zoning Code: Supplement 29 | City Code: Supplement 61 Update 1).

Full Breakdown

Article 32 of the City Code defines a 'Rental (Residential)' business as any operation that manages, leases, or provides use of a dwelling unit for compensation, but carves out landlords who rent three or fewer units in the City, so small landlords fall outside this licensing requirement. 105 makes it unlawful to transact or carry on any business, including a residential rental business, without first obtaining a license from the Director of Finance. 152 sets an annual registration fee of ninety dollars, effective July 1, 2025.

154 adds an incremental tax on top of that fee of thirty-one dollars per rental unit for the Rental (Residential) category, a flat per-unit rate that, unlike the phased-in rates for other business categories, was not phased in and applied at the full rate starting July 1, 2025. 7. 154. 3 for any of those same units rented for stays under thirty days.

Violations & Fines

Section 32.108 adds a ten percent penalty on delinquent license taxes plus another ten percent for each additional month the tax remains unpaid, capped at one hundred percent of the tax owed. Operating a residential rental business of four or more units without first obtaining the required license violates Section 32.105 and exposes the landlord to the delinquency penalties and any general code enforcement remedies available to the City.

Frequently Asked Questions

Does every landlord in Redwood City need a business license?
No. Section 32.102 defines a residential rental business as one that manages, leases, or provides use of dwelling units for compensation, but a landlord who rents three or fewer units in the City is not treated as a residential rental business and falls outside this license requirement.
How much does the rental business license cost?
Section 32.152 sets the annual registration fee at ninety dollars, effective July 1, 2025. Section 32.154 adds an incremental tax of thirty-one dollars per rental unit on top of that fee, applied at the full rate as of July 1, 2025 rather than phased in like other business categories.
What happens if I pay the license tax late?
Section 32.108 adds a ten percent penalty to the delinquent tax, plus another ten percent for every additional month it goes unpaid, up to a maximum penalty of one hundred percent of the tax due.

Sources & Official References

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