Thinking about earning extra income by renting out space in your Santa Monica home? You are not alone. Many owners want a simple, legal way to host guests while keeping good standing with the city and their neighbors. In Santa Monica, you can do this, but only within clear rules. This guide breaks down what you can do, what you cannot, how to register and pay taxes, and practical alternatives if hosting short stays is not a fit. Let’s dive in.
Santa Monica home-sharing at a glance
Santa Monica allows hosted home-sharing in your primary residence when you follow the city’s program and registration steps. That means you live on site while guests stay. By contrast, renting your entire home for fewer than 30 days without being present is generally not allowed. Stays of 31 days or more are handled under long-term rental rules, which include tenant protections and possibly rent control.
The city’s approach aims to preserve long-term housing and minimize impacts like noise, parking and trash. If you want to host visitors, you need to follow the city’s process, meet primary-residence requirements, and keep good records.
What is allowed vs. not allowed
Allowed: hosted stays in your primary residence
You may host guests while you are living on the property. This hosted model is the main legal pathway for short-term income in Santa Monica. You must register with the city’s Home‑Sharing program and meet any operating rules for safety and neighborhood standards.
Not allowed: unhosted short-term rentals
Renting your entire home for fewer than 30 days without you on site is generally prohibited. If your plan is to list your place while you travel for a weekend or a week and not be present, that will not comply with the city’s short‑term rental rules.
31+ day stays are different
If you plan stays of 31 days or more, the arrangement is usually treated as a long‑term tenancy rather than a short‑term rental. Long‑term rentals must follow landlord‑tenant law, and many units in Santa Monica may be subject to rent control and just‑cause eviction protections. Before you market a monthly rental, review rent control guidance and consider a consultation with a local attorney or experienced property manager.
Registration and taxes: what you need
To host legally, plan for three core steps. These are typical requirements that the city uses for home‑sharing and rental activity.
Home‑Sharing registration or authorization. You must apply through the City of Santa Monica’s Home‑Sharing program. The program is designed for primary‑residence, host‑present stays. The city provides an online process and will issue your authorization when you meet all requirements.
Business tax registration. Most rental activity requires a City Business Tax Certificate. Factor this into your timeline since you may need to register before hosting.
Transient Occupancy Tax (TOT) registration and remittance. Short stays usually require you to collect and remit local occupancy taxes. Some major platforms may collect and remit TOT for Santa Monica, but you remain responsible for compliance. Verify what your platform does and make sure your filings match.
Keep clear records. Save registration approvals, your Business Tax Certificate, TOT returns, listing screenshots, guest logs and communications with platforms. These records are helpful if the city requests information or you face an audit.
Operational rules and neighbor standards
Host‑present requirement and occupancy
Hosted home‑sharing means you are on site while guests are staying. The city may set occupancy or room‑use limits, or limits on nights per year. Check the current guidelines before you open your calendar. Post simple house rules and share parking, trash and quiet‑hours guidance with guests.
Nuisance controls and local contact
Noise, trash and parking complaints often trigger enforcement. Proactively manage guest expectations and provide a reliable point of contact who can respond quickly to any issues. Clear communication helps you avoid complaints and fines.
HOA, CC&Rs and lease restrictions
Even if the city allows hosted home‑sharing, your building rules may not. Many HOAs and condo CC&Rs prohibit short‑term rentals or set additional requirements. If you rent, your lease may restrict subletting or short‑term hosting. Always review your governing documents and obtain written approval when needed.
Insurance and liability
Standard homeowner or landlord policies often exclude short‑term rental activity. Confirm that your coverage includes short‑term hosting, or obtain a rider or separate policy that does. Some platforms offer limited protections, but these do not replace comprehensive insurance.
Safety and life‑safety basics
Be ready to meet any city safety disclosures or standards. Typical items include working smoke and carbon monoxide alarms, clear egress, and posted emergency contacts. A simple safety checklist protects guests and reduces risk.
Enforcement and penalties
Santa Monica enforces its rules through neighbor complaints, inspections, tax audits and platform reviews. If you operate outside the program, you can face fines, tax assessments, denial of registrations and orders to stop hosting. Repeated or serious violations can carry heavier penalties. It is far easier and less costly to set up correctly from the start.
A simple compliance checklist
Use this quick roadmap to set up your hosted home‑sharing or to pivot to monthly rentals.
- Confirm primary‑residence status. If the property is not your primary residence, hosted home‑sharing options are limited.
- Review the City’s Home‑Sharing program rules. Note host‑present requirements and any operating limits.
- Check HOA, CC&Rs and lease or mortgage terms. Obtain approvals if needed.
- Register for a City Business Tax Certificate. Keep your account current and note renewal dates.
- Register for Transient Occupancy Tax. Verify whether your platform collects and remits. You are responsible for correct filings.
- Update insurance for short‑term hosting. Ensure liability and property coverage match your activity.
- Prepare guest information. Post house rules, safety info, occupancy and parking instructions, and an emergency contact.
- Keep detailed records. Save permits, tax returns, guest logs and platform communications for several years.
- For 31+ day stays, review rent control and tenant protections. Consider legal or property management advice before signing leases.
If hosting is not the right fit
Not everyone wants to be on site with guests. If hosted home‑sharing does not work for you, consider these lawful alternatives that align with the city’s goals and your income needs.
Long‑term leasing, 31+ days
A month‑to‑month or fixed‑term lease keeps you clear of short‑term rental rules. You must follow landlord‑tenant law, security deposit rules and any applicable rent control provisions. A written lease with clear terms and move‑in documentation is essential.
Medium‑term or furnished monthly rentals
Many owners offer furnished rentals for 30 to 90 days, often to traveling professionals or temporary assignments. These stays typically avoid short‑term rental restrictions and TOT, but they still fall under tenant protection laws. Screen carefully and use a proper lease.
Corporate housing partnerships
Corporate housing providers or property managers can source 31+ day tenants, handle contracts, and keep you compliant with local rules. This option can reduce vacancy and simplify operations if you prefer not to be hands‑on.
Accessory Dwelling Units for long‑term tenants
If you have or plan to build an ADU, leasing it to a long‑term tenant can create steady income within the spirit of local policy. Make sure your ADU is properly permitted and that your lease reflects all local requirements.
Roommates and boarders
You can rent rooms to long‑term occupants while you remain in the home. This approach can provide steady income and usually fits within local rules when done with proper occupancy and habitability standards.
Property managers and compliance help
A Santa Monica‑savvy property manager can help with tenant screening, leases, rent collection, recordkeeping and compliance. If you decide to host short stays, an STR compliance service can help align your listing, tax setup and house rules with city standards.
How a local advisor can help
Choosing between hosted stays and 31+ day rentals depends on your goals, time and risk tolerance. A local advisor can help you map your options, confirm city requirements, coordinate business and tax registrations, and position your property for the best outcome. If you opt for monthly rentals, you can also benefit from pricing guidance, marketing support and vetted partner referrals for leasing, insurance and legal questions.
If you want a clear plan that balances income, compliance and neighborhood harmony, let’s talk about your property, your timeline and the best path forward.
Ready to move forward with a compliant plan for your Santa Monica property? Schedule a consultation with Unknown Company today.
FAQs
Can I rent my entire Santa Monica home for a weekend?
- Generally no. Unhosted short‑term rentals under 30 days are prohibited. Santa Monica’s permitted path is hosted home‑sharing in your primary residence while you are present.
Do I need a permit to host guests while I live there?
- Yes. You must register through the City’s Home‑Sharing program, obtain a Business Tax Certificate, and set up Transient Occupancy Tax registration for short stays.
If my platform collects taxes, do I still file TOT?
- You remain responsible for compliance. Some platforms collect and remit TOT, but you should verify what is collected and keep accurate records that match your filings.
Are 31+ day stays subject to rent control in Santa Monica?
- They can be. Many units may fall under rent control and just‑cause eviction rules. Review rent control guidance and consider professional advice before signing leases.
What happens if I do not follow the city’s home‑sharing rules?
- You could face fines, tax assessments, denial of permits or business registrations, and orders to stop hosting. Penalties can increase for repeat violations.
Can my HOA stop me from hosting even if the city allows it?
- Yes. HOA and condo rules can prohibit or limit rentals. Your building’s CC&Rs and policies apply in addition to city rules, so confirm all restrictions before you list.
