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1. What is a short-term rental?

A short-term rental (also called an STR) is a furnished, self-contained single–family residence, apartment, or room rented for a short period (up to 30 consecutive days) as opposed to month to month or annually. Short-Term Rentals are also known as vacation rentals, transient rentals, short-term vacation rentals, resort dwelling units, and are typically found through companies such as Airbnb™, HomeToGo™, FlipKey™, Vrbo™, Tripping.com™, and other vacation rental websites.  For a more complete overview, read the Short-Term Rental Ordinance in the Milpitas Zoning Code Section 13.

2. What is a "host"?

A host is either the property owner or resident of the property where the STR is located. 

3. How do I register with the City of Milpitas as a business and a short term rental?

You may only offer short-term rentals once you have obtained a Home Occupation Business License for your property from the Milpitas Business License Center and then received a permit from the Planning Department. The permit number must be posted on all listings advertising a short-term rental.

4. Did the primary law on short-term rentals change?

Yes. Prior to 2020, all short-term residential rentals (stays of less than 30 days) were illegal in Milpitas (per the City’s Planning Code). This included rentals for the entire home, or just a portion (e.g. private room listings). However, beginning in July 2020, hosts were eligible to register, with the Planning Department, in order to host limited short-term rentals; and only in eligible homes where the host also lives at least 275 nights per year. Short-term rental hosts are required to register with the Planning Department.

5. What are the rules for Live / Work Units?

• You can host short-term rentals in the residential portion of a live/work unit, if you are a permanent resident of that unit and both live in and host short-term rental guests exclusively in the “live” area of the unit.
• Short-term rental activity (e.g. sleeping, lounging/resting, or cooking areas) is not allowed in the “work” portion of the live/work or artist live/work unit. This is typically noted as such in a Notice of Special Restrictions, or “NSR,” recorded on the overall property.
• You may not reside in the “work” area and use the “live” area of the live/work unit for short-term rentals.
• Please note that many NSR require that the resident of a live/work unit use the work space for specific types of business activities and hold a business registration for that specific activity. Short-term rentals would not be considered qualifying business activity.

6. What properties are ineligible for short-term rentals?

Certain types of properties are never eligible for short-term rental. Please email Short Term Rentals if you are not sure how your property is classified.

1. Income-restricted affordable housing, including Below-Market-Rate (BMR) units and public housing.
2. Legally-established Accessory Dwelling Units (ADU); which are a specific type of "in-law" or "granny flat" approved by the Department of Building Inspection. Only rentals/listings for 30 days or longer, per guest (30-day minimum stay), are allowed in ADU. Short-term rentals hosts must live in the same individual dwelling unit, so they could not reside in the main unit and utilize the "ADU" for short-term rentals (or vice versa).
3. Sleeping quarters in most shipping containers and outdoor areas, including tipis (teepees) and tree houses.
4. Sleeping quarters in vans or (RV) recreational vehicles (this may also violate the Police Code). RV are not considered residential units.
5. Non-residential areas within buildings, such as living/sleeping quarters added in garages.
6. Commercial office/retail or industrial (warehouse) spaces.

7. Are there any fees associated with operating a short-term rental?

Fees include the cost of a business license ($100) to be renewed annually, a Short-Term Rental permit ($509) also to be renewed annually, and monthly occupancy tax payments. 

8. What are the laws regarding other types of rentals?

Rentals Longer than 30 Nights: Renter Rights and Rent Control

Rentals for more than 30 consecutive nights (by the same visitors) are not subject to short-term rental regulations or subject to hotel (transient occupancy) taxes. Business personal property taxes may still apply (administered by the Santa Clara Assessor-Recorder).

In addition, rental/tenant protections and rent control provisions may apply to stays of 30 days or more. The Planning Department cannot provide advice on tenant protection or rent control rules and laws. Contact the Housing Department for more information.

If rentals are offered for more than 30 nights per guest stay (for those dwelling units not authorized to offer short-term rentals by the Planning Department) ensure that booking calendars and advertisements for all online listings clearly indicate a 30-day minimum stay.

Renting Your Home for Meetings and Events

Some hosts use online platforms to rent out portions of their home for daytime events such as work space usage by individuals booking short time segments; or for ceremonies, conferences or meetings. This type of activity generally violates Planning Code rules if the space being used is intended for residential use.

Short-Term Rentals in Commercial and Industrial Buildings

Short-term rentals may only be hosted in areas that are permitted for residential use. For example, short-term rentals may not be held in a institutional, commercial or industrial building, unless a specific portion of the building is authorized (per the Department of Building Inspection) as a residential dwelling unit. In addition, vehicles (including RVs and Camper Vans) and temporary structures (such as tents, sheds, tree houses, etc.) may not be used for short-term rentals. Short-term rentals can be hosted in residential portions of live-work units; if the host is a permanent resident. However, the short-term rental activity is not considered a qualifying business activity in those specific live-work units where a notice of special restrictions (NSR), recorded on the property, requires a business activity/registration for the "work" area. Also see: "Ineligible Properties."

What is the basis for the City of Milpitas to create regulations for short-term rentals?

The Milpitas Charter references it'ss authority as a charter city to make and enforce all local laws and regulations that are not in conflict with general state laws per the California Constitution, Article XI, Section 7.