Are Short-Term Rentals Allowed? (Explicit Overview)

Yes—short-term rentals (defined by Davis as 30 days or less) are allowed in the City of Davis with the following explicit restrictions:

• Affordable or low-income properties may not be used for any type of rental property (including short-term rentals).
• Accessory Dwelling Units (ADUs) and Junior ADUs may not be used for short-term rentals for less than thirty consecutive days. Additionally:
• A business license is required, and short-term rentals are subject to the city’s Transient Occupancy Tax (TOT).
• Homeowners associations (HOAs) may impose additional restrictions (see HOA section below).
• Davis enforces California’s general occupancy limit of two adults per bedroom, up to 10 adults per unit.

How to Start a Short-Term Rental in Davis

To operate legally:

1. Confirm eligibility. Your property cannot be:
   • An affordable/low-income property.
   • An ADU/Jr. ADU (for stays under 30 consecutive days).
   • Otherwise restricted by zoning or HOA rules.
2. Review HOA covenants if applicable (see the HOA section below).
3. Obtain a business license with the Finance Department (City of Davis).
4. Collect and remit Transient Occupancy Tax (TOT). Davis reports an agreement with Airbnb to collect and remit TOT at approximately 12%.
5. Maintain compliance with all local and state requirements (noise, nuisance, safety, parking, etc.), and prepare to provide records if requested.

Required Documents, Permits, Licenses, and Guidelines

• Business License
  • Required for operating a short-term rental.
  • Contact the Finance Department to confirm application steps, fees, and renewal requirements.
• Transient Occupancy Tax (TOT)
  • TOT applies to short-term rentals. Davis reports collecting approximately 12% via voluntary agreements with hosting platforms (e.g., Airbnb). Confirm current rate and remittance process with the Finance Department.
• Registration/Recordkeeping (recommended for compliance readiness)
  • If the city requires “Short-Term Rental Registration” (a formal program noted in the 2015 draft ordinance), obtain and renew annually; maintain two years of occupancy and rental records for inspections/audits.
• Rental Agreements
  • Use written agreements including owner contact information, occupancy restrictions, guest information, and TOT notice.
• HOA/CC&R Compliance
  • Review and comply with HOA rules; associations can regulate STR operations even if they cannot prohibit them entirely (see “HOA & CC&R” below).
• State Occupancy and Safety
  • Maintain California’s standard occupancy limits (2 adults per bedroom, up to 10 adults) and comply with state health and safety laws.

Specific Regulations (City, County, State)

City of Davis (Short-Term Rentals)

• Definitions and Scope
  • Short-term rental: rental for 30 days or less.
  • Residential Unit: dwelling or portion thereof designed/used for residential occupancy.
  • Residential Use: occupancy for greater than 30 days.
  • Transient: person renting for 30 days or less.
  • Hosting Platform: entity providing a means to offer residential units for transient use.
• Use Restrictions (current, per city FAQs)
  • Affordable/low-income properties may not be used for any rental.
  • ADUs/Jr. ADUs may not be used for short-term rentals for less than thirty consecutive days.
• Requirements (current, per city FAQs)
  • Business license required.
  • TOT applies and is collected; Davis reports approximately 12% via agreements with hosting platforms.
• Occupancy
  • Two adults per bedroom, up to 10 adults total.
• 2015 Draft Short-Term Rental Ordinance (Article 18.10) — status unclear; included for context only:
  • Proposed registration program for short-term rentals with the City.
  • Proposed annual cap: either 90 days per calendar year or 25% of days owned/rented (whichever is less).
  • Proposed occupancy: two persons per bedroom plus one.
  • Hosting platform obligations: notice of city rules, access to records for audit, and TOT compliance.
  • Enforcement via administrative citation procedures.

Yolo County

• The provided sources do not indicate county-specific short-term rental regulations beyond city rules.

California State Law (relevant to Davis STRs)

• Civil Code §841 (shared fences): equal responsibility and notice rules—relevant to neighbors and property management, not STR-specific.
• Civil Code §4739: allows HOAs to restrict room rentals to terms of 30 days or less when the owner occupies a portion of the unit.
• Civil Code §4741 (AB 3182): prohibits PUD associations from unreasonably restricting rental or leasing of lots/units/ADUs; however, associations may expressly prohibit short-term transient use through CC&Rs.
• State occupancy norms: commonly two adults per bedroom, up to 10 adults; cities may adopt stricter limits.

HOA & CC&R Considerations (practical implications)

• Davis-Stirling Act: HOAs have authority to address problems created by STRs and to enforce rules (noise, parking, pets, etc.).
• Associations can restrict short-term transient use via explicit CC&R provisions, and can impose reasonable fees and rules.
• Under Civil Code §4739, associations can require a minimum 30-day lease term and demand proof of compliance (executed agreements).
• Under Civil Code §4741, restrictions longer than 30 days may be considered unreasonable unless specifically justified in the CC&Rs; associations should verify their documents conform to current law.
• Coastal Commission caveat: HOAs within Coastal Commission jurisdiction must obtain Coastal Commission approval before amending documents to restrict STRs.

Noise/Nuisance/Safety

• Davis has noise and nuisance ordinances that apply to all properties, including STRs. City staff have noted complaints related to parking, late-night activity, and overall intensity in certain neighborhoods.

Contact Information (Local Authority for STRs)

Finance Department (Business Licenses and TOT)

• Phone: 530-757-5602 (City Hall main)
• Email: rentalresources@cityofdavis.org (for general rental resources questions)
• Website: City of Davis Finance Department — www.cityofdavis.org/city-hall/finance

For code enforcement and neighborhood issues:

• Code Enforcement Division — see city “Code Compliance” resources and contact information on the city site.

Links to Source Pages (if available)

• Davis Rental Resources Program – Neighbors FAQs: www.cityofdavis.org/city-hall/social-services-and-housing/rental-resources-program/neighbors/faqs
• City of Davis Finance Department: www.cityofdavis.org/city-hall/finance
• City of Davis Municipal Code (general): www.cityofdavis.org/city-hall/municipal-code
• City of Davis Rental Registration Program: www.cityofdavis.org/city-hall/social-services-and-housing/rental-resources-program/register-your-rental
• Davis Municipal Code – Visual Blight definition (for code context): ecode360.com/44639230#44639247
• California Civil Code §841 (shared fences): leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=841
• Airbnb & Short-Term Rental Rules and Regulations in California (occupancy overview): www.lodgify.com/guides/short-term-rental-rules-california/#:~:text=Short%2Dterm%20rentals%20can%20only,family%20dwelling%20a%20given%20night.
• City of Davis Draft Short-Term Rental Ordinance (2015): strfacts.com/wp-content/uploads/2016/02/City-of-Davis-Draft-Ordinance.pdf
• Davis Enterprise article on potential STR regulation (context): www.davisenterprise.com/news/council-to-consider-regulation-of-airbnbs-other-short-term-rentals/article_4947ad2b-5832-5d11-b8a5-e0ac9f1ff5b2.html
• Blake Law Firm analysis of CC&R and STRs (HOA context): www.blakelawca.com/articles/str

Notes:

• The 2015 draft ordinance proposing registration and a 90-day/25% cap is not confirmed as adopted in the sources provided.
• Davis’s current TOT collection via hosting platforms is reported at approximately 12%; confirm the exact rate and remittance process with the Finance Department.