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Short-term rentals (STRs) in the City of Santa Cruz, California, are legally permitted, but they face significant regulations aimed at balancing homeowners' opportunities with housing preservation. Locally known as hosted STRs, these rentals must obtain a specific STR permit and a Transient Occupancy Tax (TOT) Certificate. Currently, the city has a cap of 250 available hosted permits, emphasizing that owners must live in the property for over six months of the year. Properties eligible for these permits include mainly owner-occupied homes and some multi-family units; however, single-family homes with accessory dwelling units (ADUs) are prohibited from obtaining STR permits. The STR market in Santa Cruz is predominantly geared toward tourists, particularly during the summer months and around local attractions like the beach and university events, which enhances the business viability for urban apartments and beachside homes. The city's Planning and Community Development Department is the primary authority overseeing STR regulations, ensuring compliance with safety and zoning laws. For more details, visit the official Santa Cruz website at.
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