In the City of Pasadena, a short term rental (STR) is a residence rented out for transient occupancy for up to 30 days. The following is a complete guideline for Pasadena’s short term rental regulations so that anyone can be a responsible host when using platforms like Airbnb, VRBO, and other similar services. This rundown should give you a good start in understanding your local laws.
Short term rentals, both hosted and un-hosted, are permitted under Ordinance No. 7317, subject to certain restrictions. STRs are permitted in single-family homes, multi-family rental units, duplexes, townhouses, and condominiums.
A Short Term Rental Permit is necessary, as is the quarterly payment of the Transient Occupancy Tax (TOT). The City has prohibited vacation rentals and residences where the property owner does not reside for at least nine months of the year to be used for short term rentals.
Short Term Rental Permit
Before renting any primary residence to a guest, the property owner or host must obtain a Short Term Rental Permit from the City. Pasadena requires hosts to register by filling out the application form online and paying a $100 fee plus administrative costs.
The City issues two separate permits (Type 1 and Type 2) for both hosted and un-hosted short term rentals.
- Type 1 Permit – This permit is for ‘hosted’ short term rentals in which the host is present throughout the guest’s stay (except during the day or work hours). An example is when a host rents out a room or rooms in their home on a short term basis. The host must be a permanent resident of the property.
- Type 2 Permit – This permit is for ‘unhosted’ short term rentals where the host is not present during the guest’s stay. An example is when the host rents their home on a short term basis while they are out of town.
Eligibility Requirements
For a short-term rental permit to be approved, hosts must meet the following requirements:
- The short term rental must be the host’s primary residence.
- The local responsible contact person or property management firm shall be available 24 hours a day.
- The space used for the STR shall comply with fire and life safety regulations, including the availability of smoke and carbon monoxide detectors, along with adequate means of egress.
- Tenants, renters, or lessees of residential units who engage in short term rentals must provide proof that they have notified the property owner/landlord of their intention to sublease their unit as an STR.
- The host must obtain a Transient Occupancy Registration Certificate from the Finance Department.
Expiration and Renewal
A Short Term Rental Permit is valid for one year from the date of issuance. It is non-transferable, does not run with the land, and is only valid at the initial short term rental site. Furthermore, the City classifies a permit as null and void unless STR hosts submit a renewal application within one year of the date of issuance of the Short Term Rental Permit.
Short Term Rental Regulations
Short term rentals must meet the following requirements:
- STRs must not disturb the neighborhood’s residential character. STRs must comply with all regulations of the Pasadena Municipal Code, including Noise Restrictions and Litter Control.
- Hosts shall advertise, maintain, authorize or facilitate transient guests in a way that complies with this Section.
- No one shall advertise a short-term rental without a City-issued Short Term Rental Permit number printed in a visible area on the advertisement, including any listing on a hosting platform.
- Un-hosted stays shall be limited to 90 days a year at most. However, there shall be no limit to hosted stays.
- Maximum occupancy of a short term rental is two guests per bedroom, plus two additional guests at one time.
- Any large-scale gatherings like commercial events, parties, or group gatherings are prohibited as part of the short term rental use. The dwelling may not be rented on a short term basis solely to accommodate such uses.
- On-site parking shall be provided for short term rental use.
- Hosts shall not post any signage advertising the availability of the short term rental on the exterior of the dwelling.
- Hosts may not offer any part of the property un-approved for residential use, such as a vehicle parked on the property, a garage, a storage shed, tents, or other temporary structures.
Inspection
Before the City issues a Short Term Rental Permit, it requires an examination to ensure that the space meets the primary fire and life/safety regulations. Self-certification or third-party inspections may be allowed.
Transient Occupancy Tax
On reservations of less than 30 nights, Pasadena charges a 12.11% TOT (Transient Occupancy Tax). Airbnb is working with the City to set up a system for collecting and remitting Transient Occupancy Tax. Hosts are responsible for paying all applicable taxes for bookings and submitting quarterly reports. All ‘taxable receipts’ are subject to TOT. Hosts must submit TOT remittance and quarterly reports only through this link online.
Penalties
Short term rentals must adhere to the City’s short term rental regulations. Violations can result in daily fines for every day a violation continues. Three violations against the same property might result in the revocation of the Short Term Rental Permit.
Other Regulations
As a responsible host, you must comprehend and abide by other contracts or regulations that bind you. These include leases, community rules, HOA rules, or other guidelines set up by tenant associations. Feel free to reach out to your landlord, housing authority, or community council to find out more. To get more information about other short term rental regulations, you can also visit Pasadena’s official website or contact us.