Overview: Are Short-Term Rentals Allowed in Sausalito?

Short-term rentals are prohibited in Sausalito. The City defines a short-term rental as the rental of a dwelling unit, accessory unit, a room, or rooms for less than 30 days, which explicitly covers common platforms such as Airbnb, VRBO, and HomeAway. Long-term rentals of 30 days or more are permitted. The City’s ban is codified in the Sausalito Municipal Code (SMC), and since late 2025, enforcement has been materially strengthened to include an advertising prohibition and an escalating fine schedule.

In parallel, California’s statewide framework—the Cortese-Knox-Hertzberg Local Government Reorganization Act (Government Code section 66427.5), defined in Revenue and Taxation Code section 7284 et seq.—requires local approval of short-term rentals through a public process and imposes municipal reporting obligations. However, in Sausalito, because the activity itself is prohibited, state-level approval pathways do not apply.

Sausalito’s enforcement posture is active and evolving. The City contracted Host Compliance to monitor and identify short-term rentals, and it has empowered residents to report violations via a 24/7 hotline and online portal. Citations carry escalating fines, and the City has recently added a specific prohibition on advertising short-term rentals, which materially narrows enforcement loopholes.

How to Start a Short-Term Rental Business in This Market

Given Sausalito’s explicit ban on short-term rentals for fewer than 30 days, starting an STR business within city limits is not legally viable. The City has repeatedly affirmed this stance, most notably on January 8, 2019, when the City Council voted to maintain the prohibition and prioritize code enforcement. Attempts to circumvent the ban through minimum-night settings close to 30 days, rotating listings, or re-titling properties are identified as violations under the City’s updated enforcement approach.

Sausalito has undertaken a series of governance steps to ensure robust enforcement:

• On November 27, 2018, the City allocated funds to increase contract code enforcement services and contracted a vendor for short-term rental monitoring and compliance. This established a structural capacity for monitoring and action.
• On January 8, 2019, the Council voted to keep the ban and directed staff to prioritize code enforcement, delay any pilot program consideration for a year, and report quarterly on enforcement effectiveness.
• Quarterly reports on enforcement effectiveness have been presented to the Council and summarized for the public through Sausalito Currents, with trends showing a significant decline in short-term rentals following active enforcement.

If your objective is to operate in Marin County, carefully verify the regulations in adjacent jurisdictions. Neighborhoods outside Sausalito may have different rules, and some permit short-term rentals under local ordinances. Regardless of any county-level allowances, Sausalito’s local ordinance applies citywide and prohibits STRs.

Required Documents, Permits, Licenses, and Guidelines

There are no City-issued documents, permits, or licenses available for lawful short-term rental operations in Sausalito because STRs are prohibited. Attempting to operate without City authorization would be a violation. Municipal guidelines focus on enforcement rather than permitting.

There is one document relevant to the current regulatory environment: the City’s Code Complaint Form, which is used to report suspected violations.

• Code Complaint Form (City of Sausalito)
  • Purpose: File a signed complaint regarding a suspected short-term rental violation
  • How to access: Download the City’s Code Complaint Form

The City also points residents and stakeholders to Host Compliance reporting mechanisms, which supplement direct complaints by offering a 24/7 hotline and online submission portal for non-emergency problems related to STR properties.

Specific Regulations in Sausalito, Marin County, and California

City of Sausalito

• Definitional Framework: Sausalito Municipal Code, section 10.88, defines “Transient Occupancy” as occupancy of residential structures, hotel rooms, or dwelling units for a temporary period of less than thirty (30) days.
• Residential Zoning and Permitted Uses: Sausalito Municipal Code, section 10.22.030, lists allowable land uses in residential zoning districts. Transient Occupancy is not listed as an allowed use; therefore, short-term rentals are prohibited.
• Enforcement Tools and Fines: SMC Section 1.10.110.B establishes a fine schedule for violations: $1,000 for the first offense, $2,000 for the second offense, and $5,000 for the third and subsequent offenses.
• Advertising Prohibition (2025): In mid-September 2025, the City Council strengthened the ban by making it illegal to advertise short-term rentals. Under the updated ordinance, fines are: $1,500 for a first offense, $3,000 for a second violation within the same year, and $5,000 for each additional violation. Each day an advertisement remains online may count as a new violation.
• Enforcement Infrastructure: The City engaged Host Compliance to identify and cite short-term rentals. Residents can report suspected violations via a 24/7 hotline at (415) 942-8181 and an online form. The City prioritizes code enforcement for STRs and publishes periodic enforcement reports.
• Council Direction (2019): Council voted to maintain the ban, prioritize enforcement, delay consideration of a pilot program, and monitor effectiveness via quarterly reports and periodic community surveys.

Marin County (contextual)

The available materials do not contain Marin County-wide STR regulations. County-level rules may vary by jurisdiction, and each city or town may adopt its own approach. Verify any county or adjacent-city requirements if you are exploring operations outside Sausalito.

State of California

• State Oversight Framework: California’s Cortese-Knox-Hertzberg Act (Government Code section 66427.5) and the companion definitions in Revenue and Taxation Code section 7284 et seq. establish the statewide structure for short-term rental approvals and municipal reporting. Under this framework, STR approval typically requires public notice and a hearing, and cities must maintain records and report to the California Department of Housing and Community Development (HCD).
• Local Prerogative: While the state sets the process and reporting duties, cities retain discretion to prohibit STRs altogether. In Sausalito, the City has exercised that discretion and prohibited STRs, rendering the state approval process inapplicable within city limits.

Contact Information

For questions, complaints, or additional information, use the following authoritative contacts:

• City of Sausalito Community Development Department

  • Phone: (415) 289-4128
  • City Hall: 420 Litho Street, Sausalito, CA 94965
  • Phone: (415) 289-4100

• Host Compliance (Short-Term Rental Reporting)

  • Phone: (415) 942-8181 (24/7)
  • Online reporting form (Host Compliance)

• City Code Enforcement Officer

  • Contact via City Hall; report violations through the City’s Code Complaint Form or Host Compliance.

Source Links and References

City and state regulatory pages, enforcement announcements, and meeting archives underpin this guide and provide direct access to the underlying documents.

• City of Sausalito — Short-Term Rentals (Hot Topics)

  • Overview of the ban, reporting tools, enforcement history, and municipal code citations.

• City of Sausalito — Municipal Code (online portal)

  • Reference for SMC sections on residential zoning, transient occupancy definitions, and enforcement provisions.

• City Code Complaint Form (PDF)

  • Formal mechanism for filing a signed complaint with the City regarding STR violations.

• Host Compliance

  • STR monitoring and reporting services, including a 24/7 hotline and online reporting portal.

• Ordinance No. 07-2025 (Attachment 1) — Sausalito Advertising Ban and Fine Schedule (PDF)

  • The 2025 ordinance that criminalizes advertising short-term rentals and sets the current fine structure.

• Staff Report — STR Metrics (Oct 15, 2025) (PDF)

  • Code enforcement staff report describing current violations and enforcement approach.

• City Council Meeting — Oct 21, 2025 (Video)

  • Council meeting in which the advertising ban was discussed and adopted.

• City Council Meeting — Jan 8, 2019 (Video)

  • Council meeting in which the City voted to maintain the STR ban and prioritize enforcement.

• City Council Meeting — Nov 27, 2018 (Video)

  • Funding approval for increased code enforcement and vendor contract for STR monitoring.

• Sausalito Currents (City Newsletter)

  • Archive of articles reporting on enforcement updates, declines in STR activity, and Council actions.

This guide is intended for investors and property stakeholders evaluating Sausalito. Because short-term rentals are prohibited in Sausalito, any business plan relying on STR activity within city limits is not viable. Consider alternative investment strategies consistent with the City’s regulatory environment. If you are evaluating adjacent jurisdictions within Marin County, conduct jurisdiction-specific due diligence to confirm whether short-term rentals are permitted and under what conditions.