Overview: Are Short-Term Rentals Allowed in Pasadena, CA?

YES, short-term rentals are permitted in Pasadena, California under specific regulations and permit requirements. The city allows both hosted and unhosted short-term rental operations through Ordinance No. 7317, subject to licensing, taxation, and operational requirements.

How to Start a Short-Term Rental Business in Pasadena

To operate a short-term rental in Pasadena, you must:

1. Meet Primary Residency Requirements: You must be a permanent resident of the property for a minimum of 9 months per calendar year. Proof of primary residency is required.

2. Obtain Required Permits: Complete the online application process and obtain an annual Short-Term Rental permit from the Planning & Community Development Department.

3. Complete Supplemental Forms: Download and complete all required supplemental forms before initiating your online application.

4. Pay Fees: Submit the $117 permit fee plus 3% records management fee and payment processing fees.

5. Register for Tax Collection: Set up quarterly reporting and tax remittance for TOT and TBID assessments.

Required Documents, Permits, Licenses, and Guidelines

Primary Documentation:

• Short-Term Rental Permit: Annual permit required ($117 plus fees)
• Supplemental Application Forms: Must be completed prior to online application
• Proof of Primary Residency: Required to demonstrate 9-month annual residency
• Property Photos: Required as part of application process
• Neighborhood Notice: Must provide copy to neighbors
• Notarized Application Affidavit: Required notary acknowledgment

No Business License Required:

Unlike many jurisdictions, Pasadena does not require a separate business license for short-term rental operations.

Specific Regulations for Short-Term Rentals

Permit Types:

• Type 1 Permit (Hosted): Host remains on-site throughout guest's stay (except during daytime/work hours). Example: renting a bedroom in your home.
• Type 2 Permit (Unhosted): Host is off-site during guest's stay. Example: renting your entire residence while out of town.

Key Restrictions:

• Vacation Rentals Prohibited: Properties where the owner does not reside for minimum 9 months per year cannot be used for short-term rental purposes
• Primary Residence Requirement: Permits only issued to primary residents
• 30-Day Maximum: Rentals limited to periods up to 30 consecutive days

Tax Obligations:

Transient Occupancy Tax (TOT):

• Rate: 12.11%
• Effective Date: March 12, 2018
• Platform Collection:
  • VRBO collects and remits TOT (as of April 1, 2025)
  • Airbnb collects and remits TOT only

Tourism Business Improvement District (TBID):

• Current Rate: 4.89% (Years 2-10: July 1, 2024 – June 30, 2033)
• Previous Rate: 3.89% (Year 1: July 1, 2023 – June 30, 2024)
• Effective Date: July 1, 2023
• Platform Collection: Only VRBO collects and remits TBID (as of April 1, 2025)

Taxable Receipts Include:

• Nightly/weekly rents
• Standard cleaning fees
• Pet fees
• Internet charges
• Late check-out fees
• Extra person fees
• Resort fees

Taxable Receipts Exclude:

• Refundable deposits
• Items subject to CA sales tax (ski passes, recreational activities)

Quarterly Reporting Requirements:

Reporting Deadlines:

• Q1 (Jan-Mar): Due April 20th
• Q2 (Apr-Jun): Due July 20th
• Q3 (Jul-Sep): Due October 20th
• Q4 (Oct-Dec): Due January 20th

Required Information:

1. Number of nights short-term rented during reporting quarter
2. Total taxable receipts for short-term rentals during reporting quarter

Important: All hosts must submit quarterly reports regardless of platform used or rental activity level.

Penalties:

• Interest and penalties accrue beginning the 21st day after quarter end
• Failure to submit reports may result in permit non-renewal

Contact Information

Short-Term Rental Regulations and Permits:

• Email: STRPermits@CityofPasadena.net
• Website: Pasadena STR Portal

TOT/TBID Tax Questions:

• Phone: (626) 744-4538
• Department: Treasury Division

TBID Assessment Questions:

• Contact: Kristin McGrath
• Email: kmcgrath@visitpasadena.com
• Organization: Pasadena Convention & Visitors Bureau/Visit Pasadena

TBID Remittance Questions:

• Contact: Mrs. Guille Nunez
• Email: gnunez@cityofpasadena.net

Complaints About STR Properties:

• Phone: (626) 744-8633
• Response Time: 1-3 business days
• Emergency: Call 9-1-1

General City Information:

• Address: Pasadena City Hall, 100 North Garfield Ave., Pasadena, CA 91101

Source Links

• Primary STR Information Page: www.cityofpasadena.net/planning/short-term-rental-regulations/
• Online Application Portal: portal.deckard.com/ca-los_angeles-city_of_pasadena-str-portal
• Tax Payment Portal: str.deckard.com/ca-los_angeles-city_of_pasadena/pay-tot/find-license/email
• Ordinance 7317: www.cityofpasadena.net/planning/wp-content/uploads/sites/30/ORD-7317.pdf
• Informational Brochure: www.cityofpasadena.net/planning/wp-content/uploads/sites/30/STR-Brochure-4.13.18.pdf
• Supplemental Forms: www.cityofpasadena.net/planning/wp-content/uploads/sites/30/Supplemental-Forms-for-STR.pdf

This comprehensive guide provides all essential information for investors looking to operate short-term rentals in Pasadena, California. The city's regulations are well-defined and enforced, making compliance crucial for successful operations.