Short-term rentals in Saratoga, explained properly.

Section 15-42.020 makes a violation of Article 15-42 an infraction. The fine may not exceed $1,500 for a first violation, $3,000 for a second violation of the same ordinance within one year, or $5,000 for each additional violation of the same ordinance within one year of the first violation. These fines do not apply to a first-time offense of failure to pay a business license fee. Under Section 15-42.010(b), each rental arranged or facilitated and each day an advertisement is posted or maintained is a separate offense.

California Revenue and Taxation Code section 7280 lets the legislative body of any city, county, or city and county levy a tax on the privilege of occupying a room or other living space in a hotel, inn, tourist home or house, motel or other lodging, unless the stay is longer than 30 days. A county's tax applies only in its unincorporated areas. The rate, registration and filing rules are set by each city or county, so the local tax is shown in the city's own section of this page.

Government Code sections 50990 to 50996 (Senate Bill 346, 2025) apply only in a city or county that adopts an ordinance making them apply. Where they apply, a booking platform must, on the local agency's request, report the physical address with nine-digit ZIP code of each short-term rental it facilitated (no more often than every 3 months, or monthly if the local tax is remitted monthly), and must include in each listing any applicable local license number and any transient occupancy tax certification issued by the local agency. The local agency may fine a platform that does not report. The act does not stop a city or county from regulating short-term rentals, platforms or tax collection in other ways.

Government Code section 66333(g) requires a city's junior accessory dwelling unit ordinance to require that a rental of a junior ADU be for a term longer than 30 days (as amended by Assembly Bill 1154, in force January 1, 2026). Section 66323(e) requires a city to require that a rental of an ADU created under that section (the ministerial, by-right approvals) be for a term longer than 30 days. For other ADUs on a lot with a single-family home, section 66315 bars standards beyond section 66314, including owner occupancy, except that a city may require that the property be used for rentals of terms 30 days or longer. Cities can be stricter in their own codes; see the city section.

Civil Code section 4741 says an owner in a common interest development is not subject to a governing-document provision that prohibits, has the effect of prohibiting, or unreasonably restricts renting or leasing a separate interest, ADU or junior ADU, and an association may not cap rentals below 25 percent of the separate interests. The same section says it does not prohibit an association from adopting and enforcing a provision that prohibits transient or short-term rental of a separate property interest for 30 days or less. Check your association's governing documents.

Civil Code section 1940 applies the chapter on hiring of real property (Civil Code sections 1940 to 1954.071) to tenants, lessees, boarders, lodgers and others who hire dwelling units, but excludes a person in transient occupancy in a hotel, motel, residence club or other facility when the stay is or would be subject to a transient occupancy tax under Revenue and Taxation Code section 7280 (stays of 30 days or less). Stays longer than that are not covered by this exclusion.

In a December 6, 2016 letter to coastal cities and counties, the California Coastal Commission said that regulating short-term or vacation rentals in the coastal zone must happen within the local coastal program or under a coastal development permit, because it changes the intensity of use and access to the shoreline and so counts as development under the Coastal Act. The Commission said it does not believe outright bans adopted outside that process are legally enforceable in the coastal zone, that it has not historically supported blanket bans, and that it has supported limits such as caps on numbers by area, limits on days, occupancy limits, 24-hour response, parking, noise and signage rules and payment of transient occupancy tax. This applies only to places inside the coastal zone.