Overview: Short-Term Rental Status in Santa Barbara

Short-term rentals are PROHIBITED in most areas of Santa Barbara, CA. According to the City of Santa Barbara, while short-term rentals have become a form of visitor lodging within the past decade, they are not permitted in most areas of the city. The city defines a short-term residential rental as a rental of all or a portion of residential property for periods of 30 days or less.

However, limited exceptions exist in specific zones where vacation rental permits may be obtained through a rigorous approval process. Any short-term rental operation requires extensive land use approvals and permits that are difficult to obtain and only available in certain zoning areas.

Starting a Short-Term Rental Business in Santa Barbara

Prerequisites and Feasibility Assessment

Before considering a short-term rental business in Santa Barbara, investors must understand that this is an extremely restrictive market. The process involves:

1. Zoning Verification: Use the city's parcel information tool to determine if your property is in a zone where vacation rental applications may be considered
2. Land Use Approval Process: Obtain necessary land use approvals and permits as required by Title 28 of the Santa Barbara Municipal Code (Zoning Ordinance)
3. Business License Application: Complete the city's business licensing process
4. Compliance with Building Codes: Ensure property meets all construction, design, and maintenance standards

Key Challenges for Investors

• Most residential areas prohibit short-term rentals entirely
• Limited zones where applications are even considered
• Extensive permitting process required
• Active enforcement program targeting illegal operations
• High barriers to entry and compliance costs

Required Documents, Permits, and Licenses

Mandatory Requirements

1. Business License: Required for all short-term rental operations (fewer than 30 nights)

   • Must be obtained before beginning operations
   • Available through the city's business licensing process

2. Vacation Rental Permit: Required for properties in eligible zones

   • Only available in specific zoning areas
   • Requires land use approval process
   • Involves comprehensive application review

3. Land Use Approvals: Mandated by Title 28 of the Santa Barbara Municipal Code

   • Required for all rentals under 30 consecutive days
   • Must be obtained before operation begins

Documentation Requirements

• Property ownership verification
• Zoning compliance documentation
• Building safety and habitability certifications
• Business license application and fees
• Land use permit applications (where applicable)

Specific Regulations

City of Santa Barbara Regulations

Prohibition: Title 28 of the Santa Barbara Municipal Code explicitly states that all rentals of residential units for periods of less than 30 consecutive days are prohibited without necessary land use approvals and permits.

Enforcement Program: The city launched an aggressive Short-Term Rental Enforcement Program on August 1, 2023, funded by City Council with goals to:

• Increase enforcement of illegal short-term rentals
• Better understand the type, seasonality, location, and number of existing STRs
• Eliminate unpermitted operations

Zoning Restrictions: Only specific zones allow vacation rental permit applications to be considered. Property owners must verify their zoning designation using the city's parcel information tool.

Building and Safety Standards: All properties must comply with Municipal Code Chapter requirements for:

• Minimum construction standards
• Design and maintenance requirements
• Habitability, health, and safety regulations

County of Santa Barbara

The county has established a Short-Term Rental Ordinance for unincorporated areas, but this does not apply to properties within Santa Barbara city limits. The county regulations include provisions for "Homestays" with specific guidelines and frequently asked questions.

State of California Requirements

At the state level, California requires compliance with:

• State tax obligations
• Safety and habitability standards
• Consumer protection laws
• Employment regulations (if applicable)

Tax Obligations

Transient Occupancy Tax (TOT)

Rate: 12% of rent charged to guests Applicability: All occupancy periods of 30 days or less Collection Responsibility: Property owner/operator must collect and remit Registration: Required with the city's tax collection system

Additional Tax Considerations

• State income tax on rental income
• Federal income tax obligations
• Business tax certificates as required
• Potential assessment district fees

Contact Information for Local Authorities

Short-Term Rental Enforcement

City Attorney's Office - STR Enforcement Program

• Phone: (805) 897-1934 (STR Hotline)
• Fax: (805) 564-5426
• Mailing Address: Santa Barbara City Attorney STR PO Box 1990 Santa Barbara, CA 93102

General Code Compliance

Code Compliance Department

• Website: santabarbaraca.gov/CodeCompliance
• Note: All non-STR code enforcement complaints should be directed here

Business Licensing

City of Santa Barbara Business Services

• Main Phone: (805) 963-0611
• Address: 735 Anacapa Street, Santa Barbara, CA 93101
• Hours: 9:00 a.m. to 5:00 p.m., Monday - Thursday, and alternate Fridays

Planning and Development (County)

Santa Barbara County Planning & Development

• Website: www.countyofsb.org/160/Planning-Development
• Note: For properties in unincorporated areas only

Source Links

• City of Santa Barbara STR Enforcement: santabarbaraca.gov/STR
• County STR Ordinance: www.countyofsb.org/776/Short-Term-Rental-Ordinance
• Airbnb Regulatory Information: www.airbnb.com/help/article/910
• City Business Licensing: santabarbaraca.gov/business/business-licenses-certificates/business-license-information
• Municipal Code: santabarbaraca.gov/government/city-hall/city-charter-municipal-code

Critical Investment Considerations

High Risk Warning: Santa Barbara presents extremely high risks for short-term rental investment due to:

1. Blanket Prohibition: Most areas completely prohibit STRs
2. Active Enforcement: Dedicated enforcement program with hotline for complaints
3. Limited Legal Options: Very few zones permit vacation rentals
4. Complex Approval Process: Extensive permitting requirements with no guarantee of approval
5. High Compliance Costs: Multiple licenses, permits, and ongoing tax obligations

Recommendation: Investors should thoroughly investigate zoning eligibility and consult with local legal counsel before pursuing any short-term rental investment in Santa Barbara. The regulatory environment is designed to severely limit and control short-term rental operations, making this an unsuitable market for most STR investment strategies.