Starting a Vacation Rental in Santa Cruz County: Permits and Tips
The vacation rental business can be a lucrative investment for property owners, especially in popular tourist destinations such as Santa Cruz County. With the rise of online booking platforms such as Airbnb and VRBO, starting a vacation rental has become more possible than ever before. However, before you start listing your property for rent, there are some important steps that you need to take to ensure that you comply with all the regulations and requirements.
Permits and Regulations
In Santa Cruz County, regulations vary depending on whether your home is located within an incorporated city (Santa Cruz, Scotts Valley, Capitola, & Watsonville) or within the incorporated areas of Santa Cruz County. Generally, you will need to obtain a vacation rental permit and potentially a Transient Occupancy Tax (TOT) certificate and a business license before you can legally rent out your property in some jurisdictions. The TOT is a tax that must be collected from guests staying less than 30 consecutive days. The tax rate varies depending on the location of your property, but it is typically around 11-14%.
Contact the Planning Department for your city or for the county (if unincorporated) to find out which permits you need for your vacation rental property.
Tips for Starting a Vacation Rental
Determine your target audience: Before you start listing your property, determine your target audience. Are you targeting families with kids, couples, or solo travelers? Knowing your target audience will help you create a rental space that appeals to them.
Create a welcoming space: Make sure your rental space is clean, comfortable, and welcoming. Provide amenities such as fresh towels, clean sheets, and basic toiletries. Consider providing additional amenities such as a fully equipped kitchen, BBQ grill, and toys or play areas for families with children.
Price your rental competitively: Do your research and find out what other vacation rentals in your area are charging. Price your rental competitively, but don't undervalue your property.
Market your rental: Take advantage of online booking platforms such as Airbnb, VRBO, and Booking.com to market your rental. Create a listing that highlights the features and amenities of your rental property. Consider hiring a professional photographer to take high-quality photos of your property.
Partner with a vacation rental management company: Managing a vacation rental property can be time-consuming and challenging. Consider partnering with a vacation rental management company such as Cypress Vacation Homes to handle the day-to-day management of your rental property. They can take care of the vacation rental permitting process and everything from marketing and booking to cleaning and maintenance.
Starting a vacation rental in Santa Cruz County can be a profitable investment, but it requires careful planning and adherence to regulations. By following the tips outlined above and partnering with a trusted vacation rental management company, you can maximize your rental income while minimizing the stress and time commitment of managing your property.
The information above is not intended to be nor should be construed to be legal advice.