Town Permit Guide

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Short-term rental (Airbnb) rules in Los Gatos, California

Los Gatos, Santa Clara County · Ordinances checked 2026-10-05 · Reviewed · 14 cited sections

Allowed with a permit

Yes, but only at your primary residence and with an annual Town short-term rental license plus a business license. Hosted rentals (you live there during the stay) are capped at 180 nights a year and un-hosted rentals at 30 nights a year, with a limit of 2 overnight guests per bedroom plus 1.

LicenseAnnual short-term rental license required [1]
Primary residenceRequired; one licensed parcel per host [2]
Hosted rental limit180 nights per calendar year [3]
Un-hosted rental limit30 nights per calendar year [4]
Town-wide cap5% of the Town's housing stock (then waiting list) [5]
Overnight occupancy2 adults per bedroom + 1 per unit [6]
Business licenseRequired, plus transient occupancy tax [7]
Local contactWithin 30 minutes; respond on site within 60 minutes [13]
Fine (2nd violation in 12 months)$250 [12]

License and who can host

You can't advertise or rent a home for under 30 nights without a Town short-term rental license [1]. The host must be the owner of record, can hold a license on only one parcel, and that parcel must be the host's primary residence [2], meaning you live there at least nine months a year [8]. The rental must be at the same address or on the same parcel as your primary residence. You also need a Town business license [7], and must collect and remit transient occupancy tax (TOT) quarterly unless the platform remits it for you. Licenses run by calendar year and must be renewed annually [14]; they don't transfer on sale.

Night limits and cap

A hosted rental, where you live on site during the stay, is limited to 180 nights a year counted across all units on the parcel [3]. An un-hosted rental is limited to 30 nights a year [4]. Licenses are capped at 5 percent of the Town's housing stock, after which applicants go on a waiting list [5].

Occupancy, parking and conduct

Overnight occupancy is 2 adults per bedroom plus one [6], and only one rental may operate on a parcel at a time [11]. Where there is no resident permit parking, guest parking must stay on site and not in the front yard [10]. Weddings, parties and other events, rentals to unaccompanied minors, apartment-complex rentals and below-market or senior units are prohibited. You need a local representative who can respond on site within 60 minutes [13], must give guests copies of Town noise, smoking, parking and trash rules, and must attach your certificate of occupancy or pass a Town inspection. HOA properties need written HOA approval.

ADUs

The STR article allows rentals only in ADUs approved before February 6, 2018 [9]. The newer ADU code bans rentals under 30 days in ADUs, so assume an ADU can't be used.

Penalties

A first violation draws a warning, a second within 12 months a $250 fine [12], and a third $500 plus revocation.

See how Los Gatos compares with 8+ other California towns on short-term rentals (airbnb / vrbo) →

Next steps

  1. Gather two proofs of primary residence, your certificate of occupancy, HOA approval (if any) and your local representative's contact information.
  2. Submit the Business License/TOT Registration Form through the Town's HdL portal along with the Short-Term Rental Application for Planning Division review (408-354-6872).
  3. Pay fees once both applications are approved, then file quarterly TOT remittance forms with the Finance Department (408-354-6835).
  4. Renew the business license and STR license before the end of each calendar year.

Common questions

Are short-term rentals legal in Los Gatos, California?
Yes, but only at your primary residence and with an annual Town short-term rental license plus a business license.
How many nights can I rent my home on Airbnb in Los Gatos, California?
Hosted rentals (you live there during the stay) are capped at 180 nights a year and un-hosted rentals at 30 nights a year.
How many guests are allowed at a short-term rental in Los Gatos, California?
The limit is 2 overnight guests per bedroom plus 1.

California state rules for short-term rentals

California has no statewide short-term rental license or registry. Your city or county decides whether and how you can rent on Airbnb or VRBO, including permits, caps, primary-residence rules and minimum stays.

Taxes: cities and counties may levy a transient occupancy tax (TOT) on stays of 30 days or less (Rev. & Tax. Code §7280). Rates and registration are local, and the county rate applies only in unincorporated areas.

New platform reporting law: since January 1, 2026, a city or county can adopt an ordinance requiring platforms like Airbnb and VRBO to report the address of each short-term rental (Gov. Code §50990 et seq., SB 346). Where a city has opted in, listings must also show the local license number and TOT certificate.

ADUs and SB 9 units: state law lets cities require that ADUs be rented for 30 days or longer. It requires that for by-right ADUs, junior ADUs and units built under SB 9 lot splits (see ADUs).

Coastal zone: in a December 2016 letter, the Coastal Commission said:

  • STR rules in the coastal zone must be adopted through the city's Local Coastal Program or a coastal development permit, and bans adopted any other way are likely not enforceable there.
  • The Commission has not historically supported blanket STR bans, finding they unduly limit public access to the coast.
  • It has supported reasonable limits, such as caps on the number of rentals, occupancy limits, and limits on which housing types can be rented.

State sources: Rev. & Tax. Code §7280 (transient occupancy tax) · SB 346 (2025), Stats. 2025, ch. 751 (short-term rental facilitator reporting) · Gov. Code §66315 (ADU rentals of 30 days or longer) · Gov. Code §66323 (by-right ADU rentals longer than 30 days) · California Coastal Commission, Short-Term/Vacation Rentals in the California Coastal Zone (Dec. 6, 2016)

What the ordinance says

Exact text from Los Gatos's published ordinances. Section numbers are as printed in the source.

  1. Sec. 14.140.020, Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    No owner of property within the jurisdiction of the Town of Los Gatos may advertise, offer, operate, rent or otherwise make available, or allow any other person to make available for occupancy or use a short-term rental without a short-term rental license.
  2. Sec. 14.140.075(2), Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    A host may not have licenses on more than one (1) parcel for short-term rental use in the Town's jurisdiction. In addition, the parcel listed on the license must be the host's primary residence.
  3. Sec. 14.140.055(a), Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    In a hosted rental, the number of nights that the property can be used for short-term rental purposes shall be limited to one hundred eighty (180) nights per calendar year.
  4. Sec. 14.140.055(b), Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    In an un-hosted rental, the number of nights that the property can be used for short-term rental purposes shall be limited to thirty (30) nights per calendar year.
  5. Sec. 14.140.030(b), Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    Short-term rental licenses shall be capped at five (5) percent of the housing stock of the Town of Los Gatos.
  6. Sec. 14.140.070, Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    The maximum number of overnight occupants (aged eighteen (18) or older) allowed within a short-term rental unit shall be two (2) persons per bedroom, plus one (1) additional person per unit.
  7. Sec. 14.140.040, Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    Each host operating a short-term rental in the Town of Los Gatos must obtain a Town business license and pay all applicable fees.
  8. Sec. 14.140.015, Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    A person may only have one (1) primary residence and must reside there for a minimum of nine (9) months per year.
  9. Sec. 14.140.065, Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    Short-term rentals are only allowed in accessory dwelling units approved before February 6, 2018.
  10. Sec. 14.140.060, Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    In areas where the Town does not provide permitted on-street parking for residents, all short-term rental parking must remain on-site.
  11. Sec. 14.140.075(3), Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    More than one (1) short-term rental may not occur concurrently per parcel.
  12. Sec. 14.140.085(a)(2), Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    A second occurrence of a violation within a 12-month period is subject to a two hundred fifty dollar ($250.00) fine.
  13. Sec. 14.140.025(2), Town Code Chapter 14, Article XIV - Short-Term Rentals, p. 1
    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 sixty (60) minutes from the time of notification.
  14. Short-Term Rental Licensing Process, Short-Term Rentals (Planning page and FAQs), p. 1
    Annual renewal of the Business License with Short-Term Rental License Number is required at the end of each calendar year.
This page summarizes Los Gatos's posted ordinances as of 2026-10-05. Ordinances are amended, and individual lots can have overlays, subdivision covenants, or HOA rules that are stricter. Confirm with Community Development - Code Compliance (Building Division 408-354-6876), 110 E. Main St. (408-399-5720) before you build. Spot an error?