ValuSignal

Santa CruzShort-term rental rules

Additional vacation and regional market / California

Santa Cruz accepts hosted STR applications but states it is not issuing new non-hosted permits.

Research reviewed . Primary sources linked.

Does the operating permit transfer?
Depends on approval

Section 24.12.1740 voids the STR permit when an ownership interest transfers. Section 24.12.1745 permits a narrow exception for transfers exempt from property-tax reassessment, verified by the county assessor. An ordinary buyer cannot use the seller's permit.

Can the land-use approval continue?
No vested right runs with land

Section 24.12.1735 expressly denies vested property rights. New non-hosted STRs are not permitted; a buyer cannot assume a replacement permit is available. Eligible hosted applicants face the city cap.

Can this buyer obtain approval?
The hosted route requires owner occupancy. Existing lawful non-hosted operations have separate treatment; new ADU STR permits are not being issued.
License or registration
The city requires an STR permit and transient occupancy tax certificate.
Application availability
Hosted applications accepted

The city reports no hosted waitlist within its 250-permit program. It is not issuing new non-hosted or ADU STR permits; confirm status before applying.

Timing to verify
  • Notify Planning in writing at least 30 days before an ownership change that may affect the permit. Provide assessor verification if claiming the reassessment exemption.
Changes and uncertainty
The city states that a property with a single-family dwelling and an ADU is not eligible for an STR permit for either unit.

What this means for the appraisal

  • Identify the exact approval held by the seller and obtain the issuing office’s written procedure for this ownership change.
  • Verify the property’s land-use approval and continuation conditions. Research finding: No vested right runs with land.
  • Check the proposed buyer against the recorded requirements: The hosted route requires owner occupancy. Existing lawful non-hosted operations have separate treatment; new ADU STR permits are not being issued.
  • In the assignment analysis, identify the evidence supporting the proposed rental use, any operating interruption and any unresolved assumptions.

Use these prompts to plan the property review. The appraiser must evaluate the evidence and reach the assignment-specific conclusions.

Record the property evidence in a worksheet

Request documents from the owner or agent

Copy this market-specific request, add the property address and edit it for the assignment.

Read or select the document request
Subject: STR property document request | Santa Cruz, CA

Please provide the following documents for the property under review. Identify any item that is unavailable or does not apply.

1. Property address, parcel ID and confirmation of the governing jurisdiction.
2. Current operating permit or registration, named holder, expiration date and renewal history, if applicable.
3. Written ownership-change instructions from the issuing office. Guide finding: Section 24.12.1740 voids the STR permit when an ownership interest transfers. Section 24.12.1745 permits a narrow exception for transfers exempt from property-tax reassessment, verified by the county assessor. An ordinary buyer cannot use the seller's permit.
4. Zoning approval, conditional-use permit, variance or grandfathering record, including conditions and evidence of continued use. Guide finding: Section 24.12.1735 expressly denies vested property rights. New non-hosted STRs are not permitted; a buyer cannot assume a replacement permit is available. Eligible hosted applicants face the city cap.
5. Documents addressing the proposed buyer and property requirements: The hosted route requires owner occupancy. Existing lawful non-hosted operations have separate treatment; new ADU STR permits are not being issued.
6. Current confirmation of application availability, including any cap, waitlist, lottery or separation rule. Guide finding: The city reports no hosted waitlist within its 250-permit program. It is not issuing new non-hosted or ADU STR permits; confirm status before applying.
7. Recorded covenants, HOA or condominium rental restrictions and applicable lease restrictions.
8. Rental operating statements and booking records, with the periods covered and any anticipated interruption at closing.
9. Confirmation of the applicable deadline and filing evidence: Notify Planning in writing at least 30 days before an ownership change that may affect the permit. Provide assessor verification if claiming the reassessment exemption.

Market research reviewed: 2026-10-31. These requests need property-specific verification.
Official research sources:
Santa Cruz Short-Term Rentals program: https://www.santacruzca.gov/Government/City-Departments/Community-Development/Short-Term-Rentals
Santa Cruz pre-2026 hosted permit conditions, sections 10 through 12: https://www.santacruzca.gov/files/assets/city/v/1/pl/documents/current-planning-pages/coa-hosted-pre-2026.pdf
Santa Cruz current code, sections 24.12.1735 through 24.12.1750: https://ecode360.com/51502274

Research and guide updates

  • Research record: Research recorded for this market. Primary sources linked. See the findings, open questions and official sources below.
  • Guide tools: Added assignment prompts, a document request and consistent research questions. This tool update does not change the market research date.

Changes and uncertainty to verify

The city states that a property with a single-family dwelling and an ADU is not eligible for an STR permit for either unit.

Sources and research limits

The sale summary cites official code, program guidance or a court record. Read its scope and any remaining questions; it is not a parcel determination.

Use this summary to identify the documents and questions for a property review. A seller's rental history alone does not establish a buyer's permission to operate.

  1. Santa Cruz Short-Term Rentals program
  2. Santa Cruz pre-2026 hosted permit conditions, sections 10 through 12
  3. Santa Cruz current code, sections 24.12.1735 through 24.12.1750

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