Overview: Short-Term Rental Status in Redwood City, CA

Short-term rentals are allowed in Redwood City, CA, but under strict regulatory conditions. The city has implemented a comprehensive regulatory framework that permits residents to rent their primary residence for short stays (fewer than 30 consecutive days) while imposing significant limitations to preserve housing stock and maintain neighborhood character. Key restrictions include a 120-day annual limit for unhosted rentals, no limit for hosted rentals when the owner is present, and a prohibition on short-term rentals of accessory dwelling units (ADUs) unless they were registered before January 1, 2020. The city requires registration, payment of a 12% transient occupancy tax, and compliance with specific operating standards.

Starting a Short-Term Rental Business in Redwood City

Step-by-Step Process to Launch Your STR Operation

Step 1: Eligibility Verification

• Confirm that the property constitutes your primary residence (where you are physically present and regard as home)
• Verify that you have only one primary residence at any given time
• Ensure the property is not an ADU unless it was registered with the City prior to January 1, 2020
• Confirm the property is located within city limits (regulations do not apply to unincorporated Redwood City)

Step 2: Tax Registration Setup

• Establish a Transient Occupancy Tax (TOT) account with the City
• Understand filing obligations, even if you anticipate platform collection
• Research whether your chosen hosting platform (Airbnb, VRBO, etc.) collects Redwood City TOT on your behalf
• If not, plan for direct filing and remittance procedures

Step 3: City Registration Process

• Complete registration through the City's official STR portal
• Pay the annual registration fee ($420 for Fiscal Year 2024-2025, subject to annual adjustment)
• Provide required documentation and property information
• Designate a local contact person available during unhosted stays

Step 4: Operational Compliance Preparation

• Ensure existing on-site parking spaces are available to renters
• Develop comprehensive house manual covering rules, quiet hours, and local information
• Establish emergency contact protocols and response procedures
• Verify compliance with building codes, fire safety requirements, and health regulations

Step 5: Platform Setup and Marketing

• Limit listings to no more than two separate listings per property on hosting platforms
• Clearly indicate 30-day minimum stay for long-term rental advertisements if applicable
• Ensure all advertisements reflect accurate property details and occupancy limits
• Implement booking management systems to track unhosted night limits

Step 6: Ongoing Compliance Monitoring

• Establish systems to track total unhosted nights (must not exceed 120 days annually)
• Maintain detailed records of all stays, guests, and revenue
• File TOT returns and remit taxes according to city schedules
• Respond promptly to any city correspondence or compliance issues

Required Documents, Permits, Licenses, and Guidelines

City Registration Requirements

Primary Documentation:

• Completed STR registration application through the City's official portal
• Proof of primary residence status (utility bills, voter registration, driver's license address)
• Property ownership documentation or lease agreement demonstrating long-term residency rights
• Photo identification of the property owner/host
• Property insurance documentation
• Local contact information and contact person agreement

Financial Documentation:

• TOT registration and account establishment
• Understanding of filing schedules and remittance procedures
• Records retention system for all financial transactions
• Evidence of tax collection methods (platform agreements or direct collection procedures)

Operational Documentation:

• Detailed house manual covering guest rules, local contacts, emergency procedures
• Parking arrangement documentation showing on-site space availability
• Safety compliance documentation (smoke detectors, carbon monoxide detectors, fire extinguishers)
• Local contact person designation with 24/7 availability requirements
• Emergency response protocols and contact information

State and Federal Considerations

California State Requirements:

• Compliance with California ADU laws and local zoning ordinances
• State tax obligations for rental income reporting
• Adherence to any applicable health and safety regulations
• Understanding of tenant protection laws for stays of 30+ days

Federal Tax Implications:

• IRS Publication 527 guidelines for vacation home rental
• Understanding of the "less than 15 days" exception for personal use properties
• Expense allocation methodologies for mixed-use properties
• 1099 reporting requirements for platform-collected income

Permit and License Fees

City Fees:

• Annual STR registration fee: $420 (FY 2024-2025, subject to annual adjustment)
• TOT rate: 12% of total rental charges for stays under 30 days
• Potential administrative fees for code enforcement violations
• Building permit fees if property modifications are required for compliance

Ongoing Financial Obligations:

• Quarterly or monthly TOT filing and payment requirements
• Annual registration renewal fees
• Potential increases in registration fees effective July 1 each year
• Federal and state income tax obligations on rental income

Specific Regulations for Short-Term Rentals

City of Redwood City STR Regulations

Property Eligibility Requirements:

• Only primary residences may be operated as short-term rentals
• A person may only have one primary residence at any given time
• ADUs are prohibited from STR use unless registered with the City prior to January 1, 2020
• Properties in unincorporated areas are not subject to city regulations

Occupancy and Duration Limits:

• Unhosted rentals: Maximum of 120 days per calendar year when host is not present
• Hosted rentals: No numerical limit when host is present during guest stays
• Maximum stay: Individual guests may not stay more than 29 consecutive days
• Minimum rental period: No minimum for STRs, but 30+ day stays are considered long-term rentals

Operating Standards:

• Local contact requirement: Hosts must designate a local contact person available during unhosted stays to respond to complaints
• Parking requirements: Existing on-site parking spaces must be made available to short-term renters
• Special events prohibition: Weddings, corporate retreats, and similar events are strictly prohibited
• Noise and nuisance control: Hosts must implement measures to prevent disturbances to neighbors

Registration and Tax Obligations:

• Annual registration through the City's STR portal is required
• Transient Occupancy Tax (TOT) of 12% must be collected and remitted
• Registration renewal is required annually with fee payment
• Accurate record-keeping and compliance monitoring are mandatory

County and State-Level Considerations

San Mateo County Context:

• County regulations may apply to properties in unincorporated areas
• County tax obligations may differ from city requirements
• County health and safety standards may impose additional requirements

California State Framework:

• State ADU laws have evolved since 2016 to promote long-term housing solutions
• State tax collection and reporting requirements apply to all rental income
• California transient occupancy tax laws provide framework for local TOT collection
• State building and safety codes apply to all residential rental properties

Contact Information for Local STR Authorities

Primary Contact Information

City of Redwood City - Planning Division

• Email: shorttermrentals@redwoodcity.org
• Registration Portal: portal.deckard.com/ca-san_mateo-city_of_redwood_city-str-portal/
• Main STR Information: www.redwoodcity.org/residents/neighborhoods/short-term-rentals
• Code Enforcement: www.redwoodcity.org/departments/community-development-department/building-inspection-code-enforcement/code-enforcement

Transient Occupancy Tax (TOT) Information

• TOT Information Page: www.redwoodcity.org/departments/administrative-services/finance/taxes-assessments/transient-occupancy-tax
• Finance Department Contact: Available through main city contact channels

Additional Resources

• Building and Safety: For compliance with building codes and safety requirements
• Fire Department: For fire safety compliance and emergency procedures
• Code Enforcement: For reporting violations and compliance assistance

Key Regulatory Documents

Official City Documents:

• Final STR Ordinance: www.redwoodcity.org/home/showpublisheddocument/15478/636685496505870000
• City Council Report (January 8, 2018): www.redwoodcity.org/home/showpublisheddocument/14308/636513479885000000
• Planning Commission Report (November 21, 2017): www.redwoodcity.org/home/showpublisheddocument/15446/636681975558200000
• STR Handout: www.redwoodcity.org/home/showpublisheddocument/29585/638779032392500000

State and Federal Resources:

• California State STR Information: California Department of Consumer Affairs
• IRS Publication 527: Vacation and Rental Property Tax Guidelines
• California TOT Guidelines: State Board of Equalization resources

Source Documentation and References

Primary Official Sources

1. City of Redwood City - Short-Term Rentals Page: www.redwoodcity.org/residents/neighborhoods/short-term-rentals
2. City STR Registration Portal: portal.deckard.com/ca-san_mateo-city_of_redwood_city-str-portal/
3. Redwood City TOT Information: www.redwoodcity.org/departments/administrative-services/finance/taxes-assessments/transient-occupancy-tax
4. Final STR Ordinance: www.redwoodcity.org/home/showpublisheddocument/15478/636685496505870000

Secondary Sources and Context

5. Airbnb Help Center - Redwood City Rules: www.airbnb.ca/help/article/2498
6. Redwood Shores - STR Regulations Overview: www.redwoodshores.com/rwc-short-term-rental-regulations
7. Luxuriant Realty - STR Investment Guide: luxuriantrealty.com/blog/shortterm-rentals-in-rwc-rules-taxes-and-pitfalls

Historical and Background Documents

8. City Council Report (January 8, 2018): www.redwoodcity.org/home/showpublisheddocument/14308/636513479885000000
9. Planning Commission Report (November 21, 2017): www.redwoodcity.org/home/showpublisheddocument/15446/636681975558200000
10. 21 Elements Housing Resources: www.21elements.com/Resources/short-term-vacation-rentals.html

Important Note for Investors: This guide provides comprehensive information based on available sources as of the knowledge cutoff date. STR regulations are subject to change, and investors should verify current requirements with the City of Redwood City directly before making investment decisions. The complex regulatory environment requires ongoing monitoring and professional consultation to ensure full compliance.