Executive Overview

Short-term rentals ARE ALLOWED in Boulder Creek, CA. Boulder Creek is located within the unincorporated areas of Santa Cruz County, which maintains a comprehensive framework for both hosted and non-hosted short-term rentals. The County permits two primary types of short-term rentals: Vacation Rentals (entire home rentals) and Hosted Rentals (1-2 bedroom rentals where the property owner remains on-site during guest stays). Both permit types are valid for five years and subject to specific regulatory requirements, caps, and operational standards.

Starting a Short-Term Rental Business in Boulder Creek

Step 1: Determine Rental Type and Eligibility

• Hosted Rentals: Rent 1-2 bedrooms while you live on-site (County-wide cap: 250 permits)
• Vacation Rentals: Rent entire home when you're not present (no County-wide cap)
• Verify your property zoning allows residential use (most residential zones qualify)
• Check if your property is in a designated beach area (LODA, SALSDA, or DASDA) which may have additional restrictions

Step 2: Pre-Application Consultation

• Strongly recommended: Schedule a planning consultation before applying
• Contact: (831) 454-2130 or visit the Zoning Counter at 701 Ocean Street, 4th Floor, Santa Cruz
• Online appointment scheduling available through county website

Step 3: Prepare Required Documentation

• Complete appropriate application forms
• Obtain Transient Occupancy Tax (TOT) certificate
• Prepare rental agreements or house rules
• Submit non-refundable application fees

Step 4: Application Submission

• Submit through online ePlan Review portal: scceplanreview.santacruzcounty.us/
• Follow Discretionary ePlan Instructions for proper submission

Step 5: Review Process and Issuance

• Hosted Rentals: Over-the-counter processing available
• Vacation Rentals:
  • Level IV review (public notice) for properties with less than 4 bedrooms
  • Level V review (Zoning Administrator hearing) for properties with 4+ bedrooms

Required Documents, Permits, and Licenses

For Hosted Rentals

New Permit Applications:

• Hosted Rental Application Form (PLG155)
• Transient Occupancy Tax (TOT) certificate or signed application from County Tax Collector
• Copy of rental agreement/lease OR house rules (if using online platform like Airbnb)
• Non-refundable application fee: $149.60

Permit Renewals:

• Hosted Rental Permit Renewal Application Form (PLG160)
• Proof of Significant Use summary (dates of rental activity)
• Non-refundable application fee: $149.60

For Vacation Rentals

Required Documentation:

• Vacation Rental application forms (specific forms available on county website)
• TOT certificate from County Tax Collector
• Detailed house rules and operational plans
• Applicable review fees (varies by property size and review level)

Universal Requirements

Transient Occupancy Tax (TOT):

• Rate: 11% of gross rental income
• Certificate required before operating
• Contact Tax Collector: (831) 454-2510 or ttc.webmail@santacruzcountyca.gov
• TOT Application Form available online

House Rules Must Include:

• Minimum rental age requirements
• Maximum number of guests
• Vehicle restrictions
• Noise limitations
• Food/cooking requirements
• Pet policies
• Prohibited events
• Trash management protocols
• Emergency evacuation instructions

Specific Regulations

Geographic and Zoning Restrictions

• Short-term rentals allowed in all zone districts permitting residential use
• Prohibited: Accessory structures, ADUs (Accessory Dwelling Units), affordable housing units, balconies, porches, sheds, tents, and RVs
• Allowed Dwelling Types:
  • Vacation Rentals: Single-family homes, duplexes, triplexes
  • Hosted Rentals: Any legal dwelling unit

Guest Limits

Vacation Rentals:

• Overnight guests: 2 per bedroom + 2 additional guests maximum
• Daytime guests: May not exceed twice the overnight guest limit

Hosted Rentals:

• Maximum: 3 guests per hosted bedroom

Designated Beach Area Restrictions

Properties located in designated beach neighborhoods (Live Oak Designated Area - LODA, Seacliff/Aptos Designated Area - SALSDA, Davenport/Swanton Designated Area - DASDA) are subject to:

• Permit Caps: 15% of total parcels in LODA and SALSDA; 10% in DASDA
• Block-Level Limits: Maximum 20% of residential parcels per block
• Wait Lists: Active wait lists maintained with $145.00 annual fee
• Bi-annual Evaluation: Permit availability assessed June 1st and December 1st

Operational Requirements

• Permit Validity: 5 years for both hosted and vacation rentals
• Owner Presence: Required for hosted rentals during all guest stays
• Signage: House rules must be posted on-site
• Compliance Monitoring: Subject to code enforcement and neighbor complaints

Tax and Financial Obligations

• Transient Occupancy Tax: 11% of gross rental revenue
• Application Fees:
  • Hosted Rentals: $149.60 (new and renewal)
  • Vacation Rentals: Varies by property size and review process
• Wait List Fee: $145.00 annually (if applicable to designated areas)

State-Level Regulations (California)

As a California property owner, you must also comply with state-level requirements:

Fair Housing and Anti-Discrimination

• Must comply with California's Fair Employment and Housing Act
• Cannot discriminate based on protected classes (race, religion, national origin, etc.)
• Reasonable accommodations must be made for guests with disabilities

Business Licenses and Tax Obligations

• State Sales Tax: May apply to certain rental services
• Federal Tax Reporting: Rental income must be reported on federal tax returns
• 1099 Reporting: Platforms like Airbnb may issue 1099 forms for tax reporting

Safety and Building Codes

• Properties must meet all applicable California Building and Fire Codes
• Smoke detector and carbon monoxide detector requirements
• Emergency egress and safety standards

Contact Information

Santa Cruz County Planning Department (Primary Authority)

• Physical Address: 701 Ocean Street, 4th Floor, Santa Cruz, CA 95060
• Phone: (831) 454-2580 (Planning Switchboard)
• Zoning Information Line: (831) 454-2130
• Email: vacation.eplanreview@santacruzcountyca.gov
• Website: cdi.santacruzcountyca.gov/

County Tax Collector (TOT Certificates)

• Phone: (831) 454-2510
• Email: ttc.webmail@santacruzcountyca.gov
• Physical Address: 701 Ocean Street, Santa Cruz, CA

Online Resources

• ePlan Review Portal: scceplanreview.santacruzcounty.us/
• Permit Status Check: www2.santacruzcountyca.gov/PlanningapplicationStatus/
• Appointment Scheduling: www2.santacruzcountyca.gov/AppointmentScheduler/Planning/

Source Links

Primary County Sources:

• Hosted Rentals: cdi.santacruzcountyca.gov/UPC/DiscretionaryPermitsZoning/DiscretionaryPermits/HostedRentals.aspx
• Vacation Rentals: cdi.santacruzcountyca.gov/UPC/DiscretionaryPermitsZoning/DiscretionaryPermits/VacationRentals.aspx
• County Code Section 13.10.694 (Vacation Rentals): www.codepublishing.com/CA/SantaCruzCounty/#!/SantaCruzCounty13/SantaCruzCounty1310.html
• Hosted Rental Ordinance 5266: www.sccoplanning.com/Portals/0/County/Planning/Hosted%20Rental%20Ordinance%205266.pdf

State Resources:

• California Department of Consumer Affairs (Real Estate): www.dre.ca.gov/
• California State Controller (Tax Information): www.sco.ca.gov/

Additional References:

• TOT Information: www.co.santa-cruz.ca.us/Departments/TaxCollector/TransientOccupancyTaxandTourismMarketingDistrict.aspx
• Designated Beach Areas Map: www.sccoplanning.com/Portals/2/County/Planning/Beach-Neighborhood-Designated-Areas.png

This guide is current as of the information provided in source documents. Regulations may change; investors should verify current requirements with Santa Cruz County officials before making investment decisions.