What is a Short-Term Rental?
A short-term rental is a dwelling unit which is shared, in whole or in part, for transient occupancy for periods of up to 30 consecutive days as a way of generating rental income. Ordinance No. 7317 allows hosted and un-hosted short-term rentals, subject to limitations. A Short-Term Rental permit and remittance of transient occupancy tax (TOT) payments on a quarterly basis are required. Vacation rentals and properties where the property owner does not reside for a minimum of nine (9) months out of the year are not permitted to be used for the purpose of short-term renting.
A Type 1 permit refers to ‘hosted’ short-term rentals where the host remains on-site throughout the guest’s stay (except during daytime and/or work hours). A common example of this is where a host short-term rents a bedroom(s) in their home. The host must be a permanent resident of the property.
A Type 2 permit refers to ‘unhosted’ short-term rentals where one the host is off-site during a guest’s stay. A common example is where the host short-term rents their residence while they are out of town.
There is no requirement for a business license. Hosts are required to obtain an annual Short-Term Rental permit from the Planning & Community Development Department and to remit TOT on a quarterly basis.
Vacation rentals are not permitted anywhere within the City. A short-term rental permit is issued only to the primary resident(s) of the property if they reside at the property for a minimum of nine months per calendar year. Proof of primary residency is required.
TOT Remittance & Quarterly Reports
TOT Remittance and Quarterly Reports submission deadlines are:
First Quarter - April 20th
Second Quarter - July 20th
Third Quarter - October 20th
Fourth Quarter - January 20th
Yes, all hosts must still submit a quarterly report, even those who list on AirBNB exclusively. AirBNB only remits TOT on behalf of Pasadena hosts but they do not submit the required quarterly report information.
The current TOT rate is 12.11%.
Hosts are responsible for TOT for all bookings beginning on March 12, 2018. TOT applies to all ‘taxable receipts’.
Taxable receipts INCLUDES, but is not limited to, nightly rents, weekly rents, standard cleaning fees, pet fees, internet charges, late check-out fees, extra person fees, and resort fees. Taxable receipts EXCLUDES refundable deposits and any additional items included in a special package rate, such as ski passes, or other recreational activity or additional service subject to CA sales tax.
The quarterly report requires you to report the following:
- The number of nights short-term rented during the reporting quarter.
- The total amount of taxable receipts for short-term rentals during the reporting quarter. See the previous question for a definition of ‘taxable receipts’.
TOT remittance and quarterly reports will be submitted ONLINE only via this link: https://secure.hostcompliance.com/pasadena-ca/permit-registration You will need to have already registered and obtained a Short-Term Rental permit to access the system. You will also need to have your Short-Term Rental permit number ready.
The deadlines for quarterly reports and TOT remittance are
|Reporting Period||Quarterly Report & TOT Due By:|
|1st Quarter||January 1st – March 31st||April 20th*|
|2nd Quarter||April 1st – June 30th||July 20th|
|3rd Quarter||July 1st – September 30th||October 20th|
|4th Quarter||October 1st – December 31st||January 20th|
Yes, all host must submit a quarterly report every quarter regardless of whether or not they had any short-term rental activity.
Penalties and interest begin to accrue beginning the 21st day after the quarter end. For example, penalties will begin to accrue beginning October 21st if you failed to remit TOT for the 3rd quarter by October 20th.
The Short-Term Rental Permit application consists of an online application and the submittal of several supplemental forms. You must complete the supplemental forms prior to initiating the online application.
Complete the supplemental forms. This includes obtaining the notary acknowledgement on the application affidavit, taking photographs of your short-term rental, providing a copy of the Neighborhood Notice to your neighbors, etc.
Apply online for your Short-Term Rental Permit via the link below. A $102 permit fee applies*. It is recommended to use Chrome as your internet browser when completing the online application. You will be provided with a Short-Term Rental Permit number via email upon approval of your online application. If you do not receive a confirmation email, please check your ‘Junk’ or ‘Spam’ folder and search for an email from ‘Host Compliance’. Also, please add ‘firstname.lastname@example.org’ to your contacts to ensure that you receive notification emails in the future.
Include your Short-Term Rental Permit number on all listings and remember to remit your Transient Occupancy Tax (TOT) and TOT records to the City on a quarterly basis.
* A 3% records management fee and payment processing fees also apply.
Questions on Short-Term Rental Operating Standards
For questions on Short-Term Rental regulations or the permit application process,
Questions on remittance of Transient Occupancy Tax (TOT)?
For questions on TOT remittance,
call (626) 744-4538
Concerns Regarding a Short-Term Rental Property
Concerns regarding noise, parking, trash and other nuisances pertaining to specific short term rental properties can be reported by calling (626) 744-8633. Depending on the nature of the concern and availability of resources, you can expect a response within 1-3 business days. In case of an emergency, please call 9-1-1.