Overview: Short-Term Rentals Allowed Status

Yes, short-term rentals are allowed in Solvang, California, but with significant restrictions. Short-term/vacation rentals are only permitted in specific designated zones within the city. The city has established limited areas where these operations can legally function, and all other locations are prohibited from operating short-term rentals.

How to Start a Short-Term Rental Business in Solvang

Starting a short-term rental business in Solvang requires careful attention to location restrictions and compliance procedures:

Step 1: Verify Location Eligibility

Ensure your property is located in one of the permitted zones:

• Tourist Related Commercial (TRC) District
• South side of Copenhagen Drive east of Fifth Street (specific addresses only: 1506, 1510, 1514, 1518, 1522, 1524, 1532, 1540, and 1546 Copenhagen Drive)

Step 2: Register with the City

Contact the Planning Division to begin the registration process and obtain required permits.

Step 3: Notify Neighbors

Provide annual written notice to all neighboring property owners within 100 feet of your vacation rental property.

Step 4: Comply with Occupancy Limits

Adhere to the maximum occupancy requirement of two adults per bedroom plus two additional adults.

Step 5: Set Up Tax Collection

Register to collect and remit transient occupancy tax (TOT) from guests.

Required Documents, Permits, Licenses, and Guidelines

Required Documentation:

• Property Registration: Formal registration of the property with the City of Solvang
• Neighbor Notification: Annual written notice to neighboring property owners within 100 feet
• Permit Application: Complete permit application through the Planning Division
• Tax Registration: Registration for transient occupancy tax collection

Key Guidelines:

• Occupancy Limits: Maximum of two adults per bedroom plus two additional adults total
• Location Restrictions: Only allowed in TRC District and specific Copenhagen Drive addresses
• Tax Obligations: Must collect and remit transient occupancy tax (TOT)
• Annual Requirements: Yearly neighbor notification requirement

Current Enforcement Issues:

The city has identified approximately 40 short-term rental units operating illegally outside permitted zones without proper permits or tax compliance. The city is actively working to address these violations and is revamping the ordinance to strengthen enforcement.

Specific Regulations for Short-Term Rentals

City-Level Regulations (Solvang):

• Zoning Restrictions: Limited to Tourist Related Commercial (TRC) District and specific Copenhagen Drive addresses
• Permit Requirement: Mandatory registration and permitting through the Planning Division
• Occupancy Limits: Two adults per bedroom plus two additional adults maximum
• Neighbor Notification: Annual written notice to properties within 100 feet required
• Tax Collection: Transient occupancy tax (TOT) collection and remittance mandatory

County-Level Regulations (Santa Barbara County):

Santa Barbara County has its own short-term rental ordinance that applies to unincorporated areas. However, since Solvang is an incorporated city, county regulations do not apply within city limits.

State-Level Regulations (California):

• Transparency Requirements: As of 2024, California requires STR operators to disclose all additional fees and cleaning chores in property listings
• Complete Price Display: All mandatory fees (except taxes) must be visible in advertisements and listings before booking
• No Statewide STR Tax: California does not impose a statewide lodging tax, leaving taxation to local jurisdictions

Upcoming Changes:

The city is currently revamping its short-term rental ordinance to address:

• Enhanced code enforcement mechanisms
• 24-hour complaint hotlines
• Daytime guest limits
• Quiet hour regulations
• Permit renewal intervals
• Caps on total number of permits
• Distance requirements between permitted properties
• Parking requirements
• Differentiation between homestays and non-owner occupied rentals
• Improved permitting system funding

Contact Information for Local Authorities

Solvang Planning Division

Primary Contact:

• Phone: (805) 688-5575 ext. 220
• Email: planningdept@cityofsolvang.com
• Office Hours: Monday through Friday, 8:00 a.m. to 5:00 p.m.

General City Contact:

• Address: City of Solvang, 1644 Oak Street, Solvang, CA 93463
• Main Phone: (805) 688-5575
• Website: www.cityofsolvang.com

Electronic Submissions: The Planning Division accepts electronic applications via email at planningdept@cityofsolvang.com

Public Records Requests: For obtaining property documents or permits, submit requests through: cityofsolvangca.nextrequest.com/requests/new

Source Links

• City of Solvang Planning Division: www.cityofsolvang.com/548/Planning-Division
• Solvang Municipal Code Section 11-12-30: qcode.us/codes/solvang/view.php?topic=11-12-11_12_30&frames=on
• Santa Barbara County Short-Term Rental Information: www.countyofsb.org/776/Short-Term-Rental-Ordinance
• California State STR Laws Overview: www.avalara.com/mylodgetax/en/blog/2023/11/state-of-the-state-california-short-term-rental-laws.html
• Santa Maria Times Coverage: santamariatimes.com/news/local/govt-and-politics/solvang-to-revamp-short-term-rental-ordinance-permanent-housing-needs-illegal-operation-among-concerns/article_693b1a6f-9c80-47ee-aa76-7f5926e7746f.html

Important Note: The city is currently in the process of revamping its short-term rental ordinance, with enhanced regulations and enforcement mechanisms being developed. Potential operators should contact the Planning Division directly for the most current requirements and to stay informed about upcoming changes to the ordinance.