Airbnb & VRBO Performance in Santa Cruz California.

Short-Term Rental Regulations in Santa Cruz, California for 2024

Permit Requirements

• Short-term vacation and hosted rentals in Santa Cruz County typically require a permit. Property owners must obtain permits, valid for five years, through the Planning Division.

Types of Permits

• Hosted Rental Permits: For properties where the owner resides on-site for more than six months per year. Available for renting one or two bedrooms within a primary residence.
• Non-Hosted Rental Permits: For properties where the owner is absent or resides on-site for less than six months. Currently, the City of Santa Cruz is not issuing new permits for non-hosted vacation rentals.

Zoning Restrictions

• Regulations vary by city and zoning district. Property owners must check the local city or county’s zoning map to confirm whether their property qualifies for short-term rental use.

Occupancy Limits

• Maximum of two overnight guests per bedroom, plus two additional guests. During daytime hours, twice the number of overnight guests is permitted.

Parking Requirements

• Properties must meet specific on-site parking requirements. For one- or two-bedroom units, at least one on-site parking space is required, while three or more bedroom units necessitate at least two on-site parking spaces.

Noise Ordinance

• Santa Cruz County enforces noise ordinances to maintain neighborhood peace. Quiet hours are typically enforced between 10 PM and 7 AM.

Transient Occupancy Tax (TOT)

• STR operators must collect and remit a Transient Occupancy Tax (TOT), currently set at 11% in Santa Cruz County. Property owners are responsible for obtaining a TOT certificate and complying with all applicable regulations.

Enforcement and Compliance

• The county actively identifies unpermitted and non-compliant properties on vacation rental platforms. Non-compliance can result in citations, escalating fines, and potential revocation of permits. Persistent non-compliance may lead to the posting of a notice of violation and associated fees and penalties of up to $2,500 per violation after 90 days.

Limitations on Unhosted Rentals

• The county is proposing regulations to limit the number of unhosted vacation rentals and rental permits. There are specific caps on unhosted rentals in designated coastal zones.

Public Reporting

• The public can report unpermitted and non-compliant vacation and hosted rental properties online.

Additional Restrictions

• Only one vacation rental permit is permitted per parcel to ensure a balanced distribution of vacation rentals within residential neighborhoods.
• Properties with Accessory Dwelling Units (ADUs) are generally ineligible for short-term rental permits within the city limits.

Top Neighborhoods Generating Airbnb Revenue in Santa Cruz, California

1. Downtown Santa Cruz

• Appeal: Downtown Santa Cruz is a central hub with plenty of cultural attractions, bars, restaurants, and shops. It offers easy access to the rest of the city and the wider county, making it ideal for first-time visitors. The local arts scene, with numerous galleries and shops showcasing local artists, adds to its charm.

2. The Boardwalk

• Appeal: This lively and vibrant neighborhood is situated by the seaside and is home to buzzing attractions, busy restaurants, and cozy cafes. It provides easy access to the beach and many of Santa Cruz’s famous landmarks. The Boardwalk is also a budget-friendly option with affordable eats and activities.

3. Midtown/Seabright

• Appeal: Known for its nightlife, Midtown/Seabright is bursting with bars, restaurants, and clubs. It is close to Seabright Beach, the Santa Cruz Yacht Harbor, and some of the best local restaurants and breweries. The area offers a mix of entertainment and relaxation, with many well-furnished homes and beach access.

4. Capitola

• Appeal: Capitola has a European flair with colorful and vibrant buildings, great restaurants, and artisanal shops. It is an artsy neighborhood with independent boutiques, delicious restaurants, charming inns, and lively bars. While slightly more upscale, it offers a unique and charming experience for guests.

5. Aptos

• Appeal: Aptos is a serene and stunning area composed of neighborhoods like Seacliff, Rio Del Mar, and La Selva. It is known for its European-style houses, cozy cafes, and luxe restaurants. Aptos is particularly appealing for families due to its variety of family-friendly activities and adventures.

These neighborhoods are highly rated on Airbnb due to their unique blend of amenities, accessibility, and the overall experience they offer to guests. Whether it's the vibrant nightlife, cultural attractions, or family-friendly activities, each neighborhood provides something distinct that attracts a significant number of Airbnb bookings.

Tips for Furnishing and Designing an Inviting Airbnb in Santa Cruz, California

Designate a Unique and Functional Space

• Choose a specific area of your home that can be dedicated to your Airbnb, such as a bedroom, in-law suite, or carriage house. Ideally, this space should have a separate entrance to ensure guest privacy.

Reflect Santa Cruz's Coastal and Natural Beauty

• Incorporate elements that reflect Santa Cruz's coastal and natural environment, such as using beach-inspired colors, natural materials, and decor that highlights the local flora and fauna.

Ensure Cleanliness and Decluttering

• Maintain a spotless space by cleaning all mirrors, floors, bed sheets, and duvets. Remove any oversized or unnecessary furniture and declutter the area to create a hotel-like ambiance.

Outfit the Space with Stylish Homeware

• Use new or refurbished homeware and furniture to create a stylish and inviting space. Consider adding small appliances like coffee makers or kettles, and ensure all linens and towels are clean and fresh.

Add Local Touches

• Incorporate local artwork, decor, or accessories that reflect the unique culture and charm of Santa Cruz. This could include surf-themed decor, local crafts, or items that highlight the city's history and attractions.

Enhance Guest Experience with Details

• Provide basic toiletries like soap, shampoo, and tissues. Add comforts such as fans, blackout curtains, and a fully equipped kitchenette if applicable. These details can significantly enhance the guest experience.

Create a Memorable and Photogenic Space

• Design the space with the intention of creating memorable moments for guests. Use bold and creative elements like unique signs, themed decor, and surprise touches that guests will want to photograph and share on social media.

Follow Local Regulations

• Ensure that your Airbnb complies with Santa Cruz County's regulations. For example, vacation rentals are allowed in single-family homes, duplexes, or triplexes, but not in accessory structures or legally restricted affordable housing units.

Optimize for Check-In and Parking

• Implement a smooth check-in process, such as using a lock box for keys, and provide clear instructions for guests. Also, ensure that there is a designated parking spot available, especially during peak tourism seasons.

Maintain House Rules and Emergency Information

• Post clear house rules on site, including rental age requirements, guest limits, noise limits, and emergency evacuation instructions. This helps in maintaining a respectful and safe environment for both guests and neighbors.

Discover the Charm of Santa Cruz: Local Attractions and Insider Tips

Must-Visit Attractions

Santa Cruz Beach Boardwalk

• This historic amusement park, opened in 1907, features the iconic Giant Dipper wooden roller coaster, classic arcade games, and the Looff Carousel. It's a must-visit for both locals and tourists.

Natural Bridges State Beach

• Known for its stunning natural bridge, this beach is perfect for sunbathing, picnicking, and enjoying breathtaking views of the Pacific Ocean. Don't miss the Monarch Butterfly Natural Preserve during their annual migration.

West Cliff Drive

• This scenic drive winds along the coast, offering breathtaking panoramas, secluded beaches, and access to the Santa Cruz Surfing Museum and Steamer Lane surf spot. It's ideal for walking, running, or cycling.

Santa Cruz Surfing Museum

• Located at Lighthouse Point, this museum honors the city's surfing history with artifacts, photographs, and old-school surfboards. Watch surfers in action at Steamer Lane.

Henry Cowell Redwoods State Park

• Explore the majestic redwoods on a hike or take a leisurely ride on the Roaring Camp Railroads. This park is a short drive from the city and offers a serene escape into nature.

Insider Tips

Local Eats and Treats

• Dream Inn's Jack O’Neill Restaurant: Enjoy local seafood and farm-to-table fare with stunning ocean views.
• Walnut Avenue Café: Great for breakfast, especially the eggs benedict.
• Gayle’s Bakery & Rosticceria: A favorite in Capitola with excellent breakfast options and coffee.
• Companion Bakeshop: Perfect for lunch or snacks and great for a picnic.

Unique Experiences

• Venture Quest Kayaking: Rent a kayak and explore Monterey Bay’s marine life, including sea caves at Wilder Ranch State Park and gray whales during migration season.
• Mystery Spot: A fun attraction with gravity-defying illusions, great for photos and family fun.

Cultural and Historical Sites

• Santa Cruz Mission: Founded in 1791, this mission is now a museum and chapel, offering a glimpse into the city's rich history.
• UCSC Arboretum: Features plants from around the world, including endangered species, and is a beautiful spot for nature lovers.

Events and Markets

• Downtown Makers Market: A monthly marketplace for local artists and creators.
• Capitola by the Sea Summer Concerts: Free concerts on the beach during the summer.
• Boardwalk Friday Night Concerts on the Beach: Popular concerts held on Friday nights.

Outdoor Activities

• Steamer Lane: A renowned surf spot, perfect for experienced surfers.
• Wilder Ranch State Park: Offers hiking trails, scenic views, and opportunities to see marine life.
• Roaring Camp Railroads: Take a scenic train ride through the redwood forests, ideal for families and those looking for a leisurely experience.

By sharing these attractions and insider tips, your guests will be well-equipped to explore the best of what Santa Cruz has to offer.

Practical Tips to Run a Successful Short-Term Rental Business in Santa Cruz, California

To ensure a smooth and enjoyable experience for both you and your guests, here are some practical tips for running a successful short-term rental business in Santa Cruz, California.

Noise Regulations and Guest Communication

Inform your guests about the noise regulations in Santa Cruz County, which enforce quiet hours typically between 10 PM and 7 AM. Clearly communicate these rules in your listing and welcome message to maintain neighborhood peace.

Comprehensive House Manual

Create both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This will help guests navigate your property easily and reduce the number of inquiries you receive.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with detailed instructions on how to use the smart locks and ensure they have all necessary access codes before their arrival.

Parking Instructions

Include clear parking instructions with photos in your house manual. This will help guests understand where they can park and avoid any potential issues with neighbors or local parking regulations.

By implementing these tips, you can enhance the guest experience, reduce potential issues, and maintain a positive reputation for your short-term rental business in Santa Cruz, California.

Here is a brief list of house cleaning, repair, and maintenance providers in Santa Cruz, California:

House Cleaning Services

Sunrise Cleaning Service

• Serving Santa Cruz County
• Flexible scheduling
• Well-trained, reliable housecleaners
• Bonded, Licensed and Insured
• Uses non-toxic, EPA-approved disinfectants.

Dynamic House Cleaning

• Operating in Santa Cruz and San Jose
• Experienced and trained cleaners
• 100% Satisfaction Guarantee
• Consistent and dependable service.

Bee-Clene

• Provides residential and commercial cleaning services
• Additional services include carpet cleaning, blind cleaning, and handyman services
• Known for professional, friendly, and efficient workers.

Notes

• These services may also offer additional maintenance or repair-related tasks, but their primary focus is on cleaning.
• For specific repair or maintenance services, it might be necessary to look into separate providers, as the listed services are primarily focused on cleaning.

Santa Cruz, California: Understanding Short-Term Rental Management Fees

In Santa Cruz, California, the fees for managing short-term rentals can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive services such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often starting at around 20% of the booking revenue.

Basic services, which may only include listing and booking management, can be less expensive but still incur additional fees for other necessities like cleaning, repairs, or design enhancements. For instance, some managers may charge a consumables fee for items like linens and toiletries, and there could be separate costs for property inspections and maintenance.

It is crucial for property owners to carefully review the fee structures and included services to ensure they are getting the best value for their investment. Local regulations, such as the Transient Occupancy Tax (TOT) and the need for a Vacation Rental Permit, also need to be factored into the overall cost of managing a short-term rental in Santa Cruz.