Short-Term Rentals

Background​
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​Short-term rental is the practice of renting a portion of or an entire home to a person or group of people for periods of less than 30 nights. In recent years, there has been exponential growth of short-term rentals offered through “sharing economy” websites such as Airbnb and VRBO, among others. 

Prior to February 19, 2019, the Town of Los Gatos Zoning ordinance was silent on the subject of short-term rentals as a permitted use in any of the Town’s zones, which by default prohibited them from occurring within the Town’s jurisdiction.

On February 19, 2019, the Town Council approved an ordinance allowing regulated short-term rentals, designed to balance the rights of homeowners to rent their homes on a short-term basis while also protecting neighbors from nuisance situations. In order to legally host a short-term rental, you must adhere to
​Los Gatos Municipal Code Article XIV – Short-Term Rentals. The ordinance went into effect on March 21,2019. 
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​Short-Term Rental Licensing Process

1.  Submit a Business License/TOT Registration Form to the Finance Department with a Short-Term Rental License Application for Planning Division review (including all applicable submittal requirements).
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​2. Once both applications have been reviewed for approval, fees are collected.
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​3. The Business License with Short-Term Rental License Number is issued.
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​4. Annual renewal of the Business License with Short-Term Rental License Number is required at the end of each calendar year.
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​5. The Transient Occupancy Tax (TOT) Remittance Form is required to be submitted every quarter to the Finance Department with tax payments, if applicable. ​
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