This page is only designed to give you an overview of the local requirements, but it is the host duty to know the legislation and to comply with the local laws. misterb&b is not a legal adviser : you should have a look at the relevant laws and contact the local authorities or a local professional for further understanding.
On May 12, 2015, the Santa Monica City Council adopted a Home-Sharing Ordinance (adding Chapter 6.20 - Home-Sharing and Vacation Rentals to the Santa Monica Municipal Code). This ordinance prohibits vacations rentals i.e. transient use of the whole dwelling unit for 30 consecutive days or less. Only is permitted home-sharing in primary residence i.e. transient use of 30 consecutive days or less while the Host is still living in the rental unit during the Guest' stay.
Home-Share rental units must comply with all applicable laws (like Article 8 of the Santa Municipal Code), including all health, safety, building, fire protection and rent control regulations. For rentals in multi-family buildings of two stories or more, the Guest must be provided with information about the emergency exit routes.
Home-sharing activity is considered a business by the City of Santa Monica. It is required then to apply for a City Business License and renew it annually (only valid from July 1 to June 30). It can be done online or at the Business Licence Office - (310) 458-8745.
Hosts must put the Business Licence number they will be given on their misterb&b listings. To do so, when connected on your misterb&b account, you should go to “edit my listing” > “address”.
It is the required to pay Business Licence Tax. Hosts that makes $40,000 or less annually in gross receipts may apply for a Small Business Exemption (Section 6.04.025 of the Santa Monica Municipal Code).
For more information, visit this page about Santa Monica Business Licence on the official Santa Monica website.
Transient Occupancy Tax
Hosts are also required to collect Transient Occupancy Tax from their Guests whom stay 30 days or less (14% of the rent paid). For more information about TOT and the remittance process, click here.
For more information about the Home-Sharing ordinance, visit this portal on the official Santa Monica website and contact the Planning and Community Development Department at (310) 458-8341.