Short Term Rental Program

The City of Novato allows residents who have registered their property with the City to rent their homes out as Short-Term Rentals (STRs) through online sites such as Airbnb, VRBO, or other websites.

Applications for an STR Registration and accompanying Business License can be submitted online here. All STR and business license fees are payable through the online application.

Please read through the rules, regulations, and application requirements shown below before beginning your application.

If you already have a registered STR in Novato, you can submit your quarterly Transient Occupancy Tax payments through the City’s online portal.

What is a Short-Term Rental?

Who is Eligible to Apply For a Short-Term Rental Registration in Novato?

The home must be a structure which is approved and permitted for residential use.
The Permanent Resident may be an owner or a tenant with a long-term lease, but must be a natural person (not a corporation, business, or other legal entity)
The home must be occupied by the permanent resident at least 60 days per year.
Permanent residency by an owner or tenant offering their home as an STR must be documented by at least three (3) of the following that include both the permanent residents’ name and address of the home being rented:
- Motor vehicle registration
- Driver’s license
- Voter registration
- Utility bill
- Tax document showing the unit utilizes the homeowner’s tax exemption
The home must provide off-street parking (driveway and/or garage)

Can I Rent My Home as a Short-Term Rental If I Am Not On The Premises?

Owners or long-term tenants that are permanent residents of the home may temporarily rent their residence out while they are traveling, on vacation, or temporarily staying at a secondary residence or vacation home, as long as they comply with the requirements of the STR Registration Program, including identifying a 24-hour emergency contact who will be living within 30 miles of the home whenever it’s rented.

What Properties are Ineligible for Short-Term Rental Registration?

The City’s STR Program is intended to help permanent Novato residents mitigate their housing costs by supplementing their income from their primary residences, yet minimize adverse impacts on the housing supply by avoiding the loss of housing through the permanent conversion to tourist/transient use. The following homes are not permitted to be utilized as an STR:

Homes that are income- or deed-restricted for affordability
Accessory Dwelling Units (ADUs) that were approved for building permits in 2017 or later (when relaxed state guidelines for ADUs were enacted as a way to increase the supply of affordable housing)
Student housing, dormitories, or single-room occupancy buildings
Properties with non-residential uses as the principal use (commercial, etc.)
Any building or structure, including garages or accessory structures, that are not permitted for residential use
Recreational vehicles, motorhomes, or trailers; motor vehicles or vans, tents, yurts, or boats.

Do I Also Need a Novato Business License?

What Are the Short-Term Rental Registration Fee(s)?

	First Year	Annual Renewals
STR Property Registration	$180.00	$69.00
STR Application Review	$333.00	$69.00
Property Inspection	$106.00**	$106.00**

** The permanent resident may self-conduct the property inspection and avoid the $100 fee; if City staff is required to satisfactorily complete the inspection, the $100 fee would apply.

The annual STR and business license fees are separate from any applicable Transient Occupancy Tax.

Are Short-Term Rentals Required to Pay the Transient Occupancy Tax?

All STRs are required to submit the applicable Transient Occupancy Tax (TOT) payment on a quarterly basis. The City of Novato’s TOT is 12% of gross receipts, and the County of Marin’s TOT is 2% of gross receipts, for a total of 14% TOT.

The City of Novato will collect both the City and the County TOT and submit the 2% directly to the County on your behalf.

Taxes should be submitted online through the City’s STR Platform.

Taxes are separate from any STR or business license application/review fees. Failure to submit taxes may result in late fees/penalties, up to and including revocation of a STR Registration.

Can I Just Rent a Room in My Home?

What is the Occupancy Limit?

Occupancy is limited based on two factors: 1) total number of bedrooms/living area, and 2) total number of off-street parking.

A home may not be rented out as an STR if it exceeds two (2) people per bedroom, plus an additional two (2) people for any separate living space that is not a kitchen or bathroom (such as a living room or den with a roll-out sofa). The occupancy limit includes any permanent residents of the home who may be staying at the home at the same time its rented out.

For example, a standard single-family STR with 3 bedrooms and a family room with a roll-out sofa has a maximum occupancy of 8 people.

However, the total home occupancy may never exceed the limit established based on the total number of off-street parking spaces.

What is the Off-Street Parking Requirement?

All STRs must provide sufficient off-street parking, such as driveways or garages, to ensure that no resident or renter is required to park on the street.

The maximum vehicle capacity for this program is four (4) people.

For example, an STR with a single-car garage and single-lane driveway has a maximum car capacity of 2; therefore the total occupancy of the STR unit is 8 people.

The total STR occupancy limit may never exceed the off-street parking limit. For example, an STR home that has 4 bedrooms + family room w/roll-out sofa, but only a single-car garage and single-lane driveway, may not exceed 8 occupants.

What is the Off-Street Parking Plan Required in the Application?

Applications must include an Off-Street Parking Plan that demonstrates the home complies with the STR guidelines and rules. An Off-Street Parking plan is a short-document that should contain:

List the total spaces available for parking in any garages and any off-street driveways
Include a photograph(s) of these off-street parking spaces
For shared driveways or shared access areas, include instructions that will be provided to guests on how to maintain clearance of these areas.

An Off-Street Parking Plan should compile all photos and information into a single document (.doc, .pdf, .jpg, .png).

What Signage is Required?

All STRs must have a clearly visible and legible notice posted on, or directly adjacent to, the inside front door of the unit with the following information:

24-Hour emergency local contact name and phone number
Maximum number of occupants/guests
Maximum number of vehicles
Off-street parking requirements
Garbage disposal instructions
Information regarding fire safety and any fire access roads
Emergency and wildfire evacuation procedures
- Evacuation Maps and fire safety information for specific Novato neighborhoods are available at novato.org/knowyourzone.
Information on signing up for emergency alerts
Information on limits and requirements of the City’s noise ordinance.

A copy of the sign should be included in the STR Registration application (.doc, .pdf, .jpg, .png).

What is a Property Inspection?

All STRs must have a completed property inspection submitted with the registration application. A property inspection must document – with photographic evidence – the following:

Egress
CO2 and smoke detectors
Interior signage for guests
Designated off-street parking

A Property Inspection should compile all photos and information into a single document (.doc, .pdf, .jpg, .png).

Who Can Conduct the Property Inspection?

What Is an Urban Wildland Interface Zone (WUI)?

Some areas of the City are designated “Urban Wildland Interfaces,” and are subject to additional rules and restrictions given their proximity to natural wildland that is prone to wildfire. If an STR unit is located in these zones, the permanent resident may also be required to secure a Wildland Urban Interface inspection by the Novato Fire District.

The City will determine whether your home lies within a Wildland Urban Interface (WUI) zone during review of your application.

If you are within a WUI zone, you can contact the Novato Fire District and schedule a "Short-Term Rental - WUI Inspection" by calling 415.878.2623.

What Is a 24-Hour Emergency Local Contact?

All STRs in Novato are required to identify a local contact, who will be living or staying within 30 miles of the STR during rental periods – who can be contacted 24-hours a day by the City’s hotline in the event of an issue or nuisance. The local contact may be the permanent resident if only a portion of the home is ever rented out, and the permanent resident is always on site. Otherwise, the local contact may be a friend, family member, or property manager who residents within the 30-mile radius.

What Noise Ordinances Apply to Short-Term Rentals?

How Can I Find More Detailed Information on Requirements or Rules?

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