Santa Monica, CA

DISCLAIMER. This page is only designed to give you some help in understanding the regulations you should comply with. We do not pretend the information provided here are to be exhaustive neither current. It is your duty to know and abide by the law.

We highly recommend you to have a look at the Santa Monica Municipal Code (SMMC), especially Chapter 6.20 “Home-Sharing and Vacation Rentals” (added by a City Ordinance on June 12th, 2015).

Please read the Home-Sharing Registration Packet prepared by the City of Santa Monica on applicable regulations, registration and requirements on short-term rentals.

 

Taxes

Short-term rental activities are subject to different taxes.

  • Notably, Hosts must collect the Transient Occupancy Tax (TOT) from the Guests, and remit it to the City of Santa Monica.
  • TOT rate is 14% and applies on rental of no more than 30 consecutive days.
  • You must register with the Department of Finance of the City to open a tax account under which you must report and remit the TOT collected.

For more details, please see this official page on TOT in Santa Monica.

 

Hosting conditions in Santa Monica

The ordinance regulating short-term rentals (Chapter 6.20 SMMC) applies on all buildings (including family houses, apartments and condominiums) and all zones of Santa Monica.

  • Under Chapter 6.20 SMMC, rental of so-called “vacation rental” (rental of your whole property) is prohibited for less than 31 consecutive days.
  • Only home-sharing (rental of a room in your property) is allowed for stays of 30 consecutive days or less. You must be present during your Guest’s stay.
  • Home-sharing is only allowed in primary residence, meaning the residence
  • Check that no lease agreements, homeowners’ association bylaws, covenants, conditions & restrictions (CC&Rs) or other prohibit the use of your unit as a STR.

 

License for Home-Sharing business

More information on the Home-Sharing Registration Packet designed by the City of Santa Monica.

  • Application. Hosts in Santa Monica must apply for a Business License for Home-Sharing. You can download the application form here.
  • Residency proof. Please note that, as part of the licensing process, you may have to provide proof of residency (see the Home-Sharing Registration Packet to learn about acceptable proofs).
  • Business license fee. The cost of the license application is $75,00. However, you may not be required to pay the application fee if you qualify for Small Business Exemption (annual gross receipts $40,000).
  • Business lincense number on listings. Once you obtain your Business License, you must add the license number on your misterb&b listing. As required by law, we may prevent the booking of properties for which the registration number is missing. 

For more information on the Business license, please visit this official page on the Santa Monica Department of Finance website.

 

Maintaining compliance

  • Nuisance. You must actively ensure your Home-Sharing activity do not result in nuisance of any kind (such as noise nuisance)
  • Applicable municipal regulations. Complies with all applicable laws, including all health, safety, building, fire protection, and rent control laws. See the Santa Monica Municipal Code as some Chapters may apply to your Home-Sharing activity and lodging. 
  • California laws. Short-term rental units  must also respect all State regulations, including without limitations California Building Code.

 

For any further questions on Home-Sharing rules and regulations, please contact your Planning department at (310) 458-8341 or by email at planning@smgov.net.