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Short-Term Rental FAQs

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1. Do I need to pay Transient Occupancy Tax (TOT) for my short-term rental?

Yes. TOT shall be collected for short-term rentals and paid to the Town of Los Gatos, pursuant to Chapter 25, Article III of the Los Gatos Municipal Code. Collection and remittance of TOT is the responsibility of the host. If a hosting platform is used, and the Town has a voluntary collection agreement, or equivalent, with that hosting platform, TOT may be collected and remitted directly to the Town by the hosting platform. The Town currently has a voluntary collection agreement with Airbnb only. The host must still submit quarterly TOT Remittance Forms to the Town Finance Department. The host must also maintain records of TOT paid, even if paid by a hosting platform, for three years.

2. Do I need to submit a Transient Occupancy Tax (TOT) Remittance form if I did not rent out my short-term rental this quarter and no tax is due?

Yes, for tracking purposes, quarterly TOT Remittance forms must be submitted to the Town Finance Department, even if the STR was not utilized and no tax is due.

3. Do I need to submit a quarterly Transient Occupancy Tax (TOT) Remittance Form if I only list my short-term rental on Airbnb and Airbnb remits TOT to the Town on my behalf?

Yes, for tracking purposes, quarterly TOT Remittance forms must be submitted to the Town Finance Department even if Airbnb was the only platform used, subject to the voluntary collection agreement. If that is the case, the TOT Remittance form will instruct you to not send additional tax payments to the Town.

4. I can't find the Certificate of Occupancy for my property. What can I do?

A Certificate of Occupancy for the short-term rental space must be submitted in order to ensure the space is habitable and in compliance with all permit conditions, laws and codes. If you do not have a copy of the Certificate of Occupancy for your property, please contact the Town Building Department at (408) 354-6876 or Building@losgatosca.gov to see if there is a copy on file. If no Certificate of Occupancy can be produced, the host must pay for, obtain, and pass a health and safety inspection from the Community Development Department prior to issuance of a short-term rental license.

5. Do I need a Town business license?

Yes.  The Business License/TOT Registration form for short-term rental must be completed and submitted to the Finance Department. It is the responsibility of the host to make sure the business license is renewed before the end of each calendar year.

6. Do I need to own the property I intend to use for short-term rental?

Yes. A short-term rental host is required to be the owner of record of the residential property and must hold a valid short-term rental license to operate the short-term rental.

7. Does my short-term rental need to be my primary residence?

Yes. The short-term rental must be the host’s permanent residence or usual place of return for housing. A person may only have one primary residence and must reside there for a minimum of nine months per year. A primary residence may be documented by at least two of the following in the host’s name: motor vehicle registration, driver’s license, voter registration, tax document showing the residential unit as the host’s residence, or a utility or cellular phone bill from within the past 60 days.

8. Are there limits on the number of days per year that I can host a short-term rental?

Yes. A hosted rental (the host resides at the property while it is being used as a short-term rental) is capped at 180 days per calendar year. An un-hosted rental (the host does not reside at the property while it is being used as a short-term rental) is capped at 30 days per calendar year.

9. Can I apply for both a hosted and un-hosted short-term rental license?

Yes, a short-term rental host may hold both a hosted and un-hosted license, as indicated on the application.

10. Can I use my accessory dwelling unit as a short-term rental?

This depends on when your accessory dwelling unit was approved. Existing Town Code Section 29.10.320 (b) (14) prohibits rentals for durations of less than 30 days in new accessory dwelling units approved after February 6, 2018, when the ordinance went into effect. If you have an accessory dwelling unit approved before February 6, 2018, it may be used as a short-term rental.

11. Can I have multiple short-term rental properties in Town?

No. Short-term rentals are limited to one per parcel and one per owner. You may have different rental options for one property (i.e. a room and an accessory dwelling unit approved before February 6, 2018), as long as they are not rented concurrently.

12. Is there a limited number of short-term rentals allowed in Los Gatos?

Yes. Short-term rental licenses are capped at five percent of the Town’s overall housing stock. Once that threshold is reached, a first-come, first-served waiting list will be established.

13. Are there parking regulations for short-term rental guests?

Yes. All short-term rental parking must remain on-site in areas where on-street parking is not permitted. In areas where on-street parking is permitted, short-term rental parking is limited to use of the two guest parking passes purchased per house/property through the Police Department.

14. Can my short-term rental license be revoked?

Yes. The Community Development Director has the ability to revoke a short-term rental license at his/her discretion and short-term rental licenses are automatically revoked after three confirmed violations in a twelve-month period. Revoked short-term rental licenses may be appealed by following the appeal process detailed in the ordinance. A license revocation remains in effect for five years.

15. Is there a penalty for failing to register a short-term rental with the Town?

Yes. Operating a short-term rental without a license is penalized with both monetary fines and the ability to revoke or deny a short-term rental license.

16. Can I host a wedding or special event at my short-term rental?

No. Commercial or assembly uses are not allowed in short-term rentals.

17. My property is part of a homeowner association. Can I use it as a short-term rental?

Properties that are part of a homeowner association (HOA)
need to submit a letter of approval for any potential short-term rental that is
part of an HOA. 

18. Can I have a short-term rental in an apartment building?

No. In an effort to conserve affordable long-term housing stock, short-term rentals are not allowed in apartment buildings.

19. Is the number of short-term rental guests limited?

Yes. The maximum number of overnight occupants (aged eighteen or older) allowed within a short-term rental unit shall be two persons per bedroom, plus one additional person per unit. The maximum number of daytime (non-overnight) occupants shall be one and a half times the maximum number of occupants allowed to stay overnight at the unit. The Town has sole discretion to determine the final occupancy limit to be permitted at the short-term rental site.

20. Do I need to be on call to manage my short-term rental 24/7 or have a representative to do so?

Yes. The host shall provide the name, permanent address, email address, and telephone number (if different from his/her own), of a local representative (which can be a person or company) who can be contacted 24 hours a day regarding the use of the property or complaints related to the short-term rental. For the purposes of this requirement, local means the representative's address is within a 30-minute travel time of the subject property and the representative is able to manage the short-term rental, respond to reported issues, contact the tenant regarding complaints received, and/or be physically present at the short-term rental to address complaints within 60 minutes from the time of notification.

21. Do I need to provide my short-term rental guests with copies of local Town rules?

Yes. The host must provide the short-term rental guest either a physical or electronic copy of the Town’s Noise Ordinance, Smoking Ordinance, Short-Term Rental Ordinance, including highlighted parking and occupancy regulations, and local trash collection schedule.

22. Do I need to maintain records for my short-term rental?

Yes. The host shall retain records documenting compliance with this chapter for a period of three years after each period of short-term rental, including, but not limited to, records showing payment of transient occupancy tax by the host or a hosting platform on behalf of a host. Upon reasonable notice, the host shall provide any such documentation to the Town of Los Gatos upon request for the purpose of inspection or audit.

23. How can I file a complaint regarding a short-term rental?

You may file a complaint by contacting our code compliance
department by phone at (408) 399-5720, by email at codecompliance@losgatosca.gov,
or file an online complaint here.