Santa Barbara Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Santa Barbara,California?

Navigating the rules around short-term vacation rentals in Santa Barbara can be confusing for property owners looking to enter this lucrative market. With its year-round sunny climate, sandy beaches, wine country charm, and proximity to Los Angeles, Santa Barbara draws visitors from around the world seeking a taste of the California lifestyle.

For homeowners with extra space, listing on sites like Airbnb and VRBO offers potential income from these tourists. However, the city and county have regulations in place to restrict short-term rentals (STRs), depending on factors like location and zoning. Determining what's allowed for your specific property requires research into local ordinances.

This guide breaks down the key regulations and permitting processes property owners face when establishing a legal STR in Santa Barbara. We'll clarify requirements around licensing, taxes, eligible zones, enforcement policies, and penalties for violations. For those willing to navigate somewhat contradictory rules, short-term vacation rentals remain viable in select coastal areas. Understanding the constraints across neighborhoods can help hosts capitalize on tourist demand without running afoul of city statutes or facing major fines.

Starting a Short Term Rental Business in Santa Barbara

Opening a legal and compliant short term rental in Santa Barbara requires navigating a web of zoning laws and regulations. The city aims to balance economic growth from tourism against preserving housing supply for residents.

Within these constraints, there is still opportunity for hospitality entrepreneurs or existing homeowners to operate successful Airbnbs or VRBOs in permitted areas.

The key is understanding exactly where short term rentals are allowed, and what paperwork hosts need to comply. Approvals ultimately depend on the property's specific zoning designation.

In commercial or certain coastal zones, short term rental businesses may be feasible if owners complete the conversion permitting process. In most inland residential areas however, the city currently prohibits vacation rentals to protect housing.

With research and planning, Santa Barbara short term rentals can still thrive in authorized districts. We break down the step-by-step permitting and documentation required to legally and successfully launch.

Short Term Rental Licensing Requirement in Santa Barbara

To legally operate a short term rental (STR) in Santa Barbara, property owners must obtain approval from the city planning department. Specifically, you need a land use permit that allows the conversion of your property into a STR.

Without this permit, simply having a Santa Barbara business license or transient occupancy tax certificate does not make your STR legal or compliant with city regulations. Those credentials alone do not override zoning restrictions against STRs.

The land use permit application process requires submitting documents that prove your property lies within an acceptable STR zone, filing an operation plan, and paying permitting fees. Acceptable zones include certain coastal zone neighborhoods zoned for hotels and motels.

Once your permit is approved, you can then register for the additional tax certificates and business licenses required to transact as a STR.

This clear cut permitting pathway gives Santa Barbara property owners a straightforward process to legally establish and operate STRs. As the city ramps up enforcement efforts against illegal listings, obtaining the proper approvals through this licensing process will become increasingly important for hosts seeking to maintain compliant, licensed STRs.

Required Documents for Santa Barbara Short Term Rentals

To legally operate a short term rental property in Santa Barbara, hosts must obtain several key documents from the city. These required permits and licenses legitimize the business and bring it into compliance.

Land Use Conversion Permit

The land use conversion permit allows a property zoned for residential use to be converted for commercial lodging purposes. This permit essentially gives approval from the city planning department to utilize the home as a short term rental. Without it, advertising and renting out the property on sites like Airbnb is prohibited.

Transient Occupancy Tax Registration Certificate

The transient occupancy tax (TOT) registration certificate shows that hosts are registered to collect and remit the required 12% hotel tax charged to guests. All legal short term rentals must register for a TOT certificate within 30 days of renting out the first night.

Business License

A current Santa Barbara business license covering rental properties is mandatory. This requires payment of an annual business tax and demonstrates adherence to city regulations.

Clearly the land use conversion permit, TOT registration, and business license are fundamental for operating short term rentals above board in Santa Barbara. By obtaining these documents, hosts follow proper protocol and avoid steep fines.

Santa Barbara Short Term Rental Taxes

Santa Barbara levies a 12% transient occupancy tax (TOT) on all short term rental properties located in the city. This includes hotels, motels, hosted homes, apartments, condos, and other lodgings rented for less than 30 consecutive days.The TOT must be collected from guests by hosts or property managers on any booking less than 30 days. These taxes are then remitted monthly to the city's finance department. All short term rental operators are required to have a valid TOT certificate clearly displayed on their listing.

In addition to TOT, short term rental hosts must pay quarterly Santa Barbara business license taxes. The business license tax rate varies based on the type of rental property and annual gross receipts. Annual business license tax rates in Santa Barbara range from $25-$100 for small operators up to $540-$1,320 for larger businesses.

The bottom line is that all legal short term rental operators in Santa Barbara need to collect and pay transient occupancy taxes from guests. Additionally, as business owners, hosts must pay city business license fees themselves on a quarterly basis. Even illegal short term rentals are still liable for back taxes and fees if caught by enforcement officers. So properly licensing your rental and paying taxes is crucial to running a legitimate business in the city.

Santa Barbara wide Short Term Rental Rules

Santa Barbara has strict regulations on short term vacation rentals across the city. In most residential zones outside the coastal area, the city prohibits short term rentals altogether. The city considers rentals under 30 days as short term.Within the coastal zone near beaches and the waterfront, Santa Barbara does allow short term rentals with proper permitting.

However, enforcement has been relatively lax up until this point. Hosts could often operate short term rentals in the coastal zone without repercussions.Moving forward, Santa Barbara plans to ramp up enforcement of illegal short term rental units with a new pilot program. The city recently approved $1.175 million in funding to crack down on unpermitted short term rentals over the next 18 months. The pilot calls for proactive inspections and enforcement measures against illegal units.

Fines for operating without a permit can be steep - up to $15,000 per day in the coastal zone and up to $700,000 per day in inland areas. With stricter enforcement on the horizon, short term rental hosts in Santa Barbara face much higher risks of penalties if caught operating without the proper permitting.

The bottom line is Santa Barbara has contradictory rules that previously went unenforced. Short term rentals were often tolerated if taxes were paid. However, with housing availability tight, the city now plans to strictly impose existing regulations against illegal units. Permitted short term rentals will still be allowed in certain coastal areas. But hosts everywhere else risk high fines if caught operating without approval.

Does Santa Barbara strictly enforce STR rules?” Is Santa Barbara Airbnb friendly?

Santa Barbara takes short term rental regulations seriously and plans to ramp up enforcement efforts. In 2023, the city is launching a pilot enforcement program specifically targeting illegal short term rentals.

The program has $1.175 million in funding to proactively inspect properties and issue citations. Fines for violations can be steep, ranging from $15,000 in the coastal zone to $700,000 in inland areas. With this level of resources and penalties behind it, the enforcement program shows Santa Barbara's commitment to cracking down on rule-breaking.

While Santa Barbara does allow properly permitted short term rentals to operate legally in certain designated zones, the city makes it clear that compliance is expected. Those hoping to run Airbnbs or other short term rentals in grey areas run a real risk of facing enforcement action.

Overall, Santa Barbara cannot be considered an Airbnb-friendly city in the sense of allowing just any property to operate as a short term rental. The planned enforcement program and imposition of heavy fines on illegal rentals demonstrates that Santa Barbara intends to strictly enforce regulations around short term housing. Property owners looking to enter this market would be wise to fully understand the stringent regulations in place rather than hoping to fly under the enforcement radar.

How to Start a Short Term Rental Business in Santa Barbara

Starting a legal and compliant short term rental business in Santa Barbara requires following several key steps:

Determine if Your Property Qualifies First, you need to verify that your property is located in one of Santa Barbara's permitted STR zones, typically certain coastal areas zoned for hotels and motels. Use the city's zoning map to validate. Properties outside these designated zones cannot operate short term rentals.

Apply for a Land Use Permit If your property qualifies, submit a land use permit application to legally convert the property into a short term rental. This specialized permit for vacation rentals costs $504 as of 2023. Provide all required ownership documentation and rental operation details. Allow 30 days for permit approval.

Obtain Transient Occupancy and Business Tax Certificates Concurrently with your permit application, register for transient occupancy tax collection and certificates. All Santa Barbara STRs must collect and remit the required 12% hotel tax on each booking. Additionally acquire a standard business tax certificate to formally register your STR business with the city.

Set Up Your Rental Listings Once approved with all documentation in place, create listings on major short term rental platforms like Airbnb, VRBO and Booking.com. Craft appealing listings with professional photos and complete details on your coastal rental property. Enable instant booking and competitive pricing.

Operate Legally Going forward, operate fully above board by continuing to remit occupancy taxes on bookings, filing business taxes annually, passing inspections and avoiding nuisance violations. Report issues promptly to maintain your STR in good standing.

Following this clear process will successfully set up your short term rental to operate legally according to Santa Barbara regulations. Let the bookings roll in and welcome your first coastal guests!

Who to contact in Santa Barbara about Short Term Rental Regulations and Zoning?

To obtain definitive guidance on short term rental regulations and zoning in Santa Barbara, contact the city's Planning and Development Department.You can submit questions or permit applications directly to planning staff through the PlanningCounter email:

PlanningCounter@SantaBarbaraCA.gov

Explain that you are inquiring about regulations and permits related to operating a short term rental property. Provide the property's specific address and parcel number if possible.

The PlanningCounter email allows Santa Barbara residents and prospective hosts to communicate directly with knowledgeable planners and officials. Staff members typically respond within 1-2 business days.You may also contact the Planning and Development general phone line at (805) 564-5578. Explain you have questions about short term rental zoning and regulations. The agent can direct your call to the appropriate planner or supervisor.

Discussing your specific property with city planners is the best way to get definitive answers on what is permitted, required permits or approvals, potential penalties for violations, and the pilot enforcement program launching in 2023. Contacting the Planning and Development Department directly eliminates confusion and helps hosts remain compliant.

What do Airbnb hosts in Santa Barbara on Reddit and Bigger Pockets think about local regulations?

The overarching sentiment is that the rules are contradictory, creating confusion for hosts trying to operate legally. For example:

• The city permits hosts to collect transient occupancy tax and run listings on sites like Airbnb. However, many of these actively operating rentals are still considered illegal due to zoning restrictions.
• There is uncertainty around what qualifies a listing as a legal short term rental. Some permitted hotels rent out rooms on a nightly basis, yet face less scrutiny than single family residence hosts.
• Enforcement seems inconsistent, with few repercussions for clearly non-compliant listings that decrease local housing supply. Yet responsible hosts trying to operate legally face burdensome permit processes.
• Coastal zone regulations are generally more rental-friendly, providing clearer guidance around legal short term rental operation. However inland zones have near outright bans despite allowing hotels.

Overall the regulations are felt to be contradictory, confusing, and arbitrarily enforced. Responsible hosts attempting to create value and comply with taxes face higher bars to operation compared to illegal hotels flying under the radar. Clarification around zoning, permits, and enforcement would be welcomed.