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Santa Cruz, a vibrant coastal city known for its stunning beaches, redwood forests, and laid-back surf culture, is a beloved destination in Northern California. With attractions like the historic Santa Cruz Beach Boardwalk and scenic hiking trails in the nearby mountains, it offers a perfect mix of outdoor adventure and seaside charm. Located just over an hour south of San Francisco and Silicon Valley, Santa Cruz is an excellent spot for short-term rentals, drawing visitors seeking both relaxation and excitement.
Short-Term Rental Regulations
Short-Term Rental Regulations
Ordinances/Regulations
- Permit Required: STRs in Santa Cruz County typically require a permit, especially in cities like Santa Cruz, Capitola, and Scotts Valley. Be sure to check with the specific city or county planning department for permit requirements.
- License Tiers: Santa Cruz County and its cities may have different license types based on the type of short-term rental. Examples include:
- Primary Residence Rentals: Some cities allow homeowners to rent part of their primary residence, with restrictions on how many days they can be rented annually.
- Whole-Home Rentals: Whole-home rentals are allowed in certain areas but may face restrictions such as a cap on the number of days rented per year, and they require special permits.
Zoning Restrictions
- Zoning Laws: STR regulations in Santa Cruz County vary by city and zoning district. Check your local city or county’s zoning map to confirm whether your property qualifies for STR use.
Occupancy Limits
- Limits Based on Property Type: Occupancy limits for STRs depend on the size and type of the property. Santa Cruz County generally limits STR occupancy to two guests per bedroom, with overall caps based on the size of the home.
Parking
- Parking Requirements: On-site parking requirements for STRs vary by city and property type. In most cases, Santa Cruz County requires STR operators to provide adequate off-street parking for guests.
Noise Ordinance
- Noise Restrictions: Santa Cruz County enforces noise ordinances for STRs to maintain neighborhood peace. Quiet hours are typically enforced between 10 PM and 7 AM.
Transient Occupancy Tax (TOT)
- TOT Requirement: STR operators in Santa Cruz County and cities like Santa Cruz and Capitola must collect and remit Transient Occupancy Tax (TOT) on all rentals. The TOT rate usually ranges from 10% to 12%.
Who is Renting
Traveling Families
Love the comfortable, safe, and spacious accommodations
Couples & Friends
Enjoy the charming, well-located rentals for exploring Alameda and nearby attractions
Business Travelers
Appreciate the comfortable accommodations with nice kitchens and bathrooms, perfect for unwinding after work
Highly Important
Somewhat Important
Nice to Haves
Most Popular Rental Size
4 Bedrooms
3 Bedrooms
2 Bedrooms
A Look at the Numbers
Budget
Mid Level
Premium
Rent Revenue By Size
7% Interest Rate
7% Interest Rate
Rent Revenue by City
Rent Revenue
By Top Performing Cities
Capitola
Santa Cruz
Aptos
Felton
Ready to make money with your ADU?
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Renting Your ADU for Short-Term Rentals
Before listing your ADU, it's essential to understand the rules:
- Check Zoning and Permits: Santa Cruz has specific regulations for short-term rentals. Make sure your ADU is in a zone that allows short-term rentals.
- Obtain a Short-Term Rental Permit: You need a permit to operate a short-term rental. This includes your ADU if you plan to rent it out for less than 30 days at a time.
- Know the Occupancy Limits: Understand the maximum number of guests allowed in your ADU according to local laws.
Your ADU should be ready to impress potential guests:
- Furnish and Decorate: Make sure your ADU is fully furnished and comfortable. Add some personal touches like local art or a cozy throw blanket.
- Stock Up on Essentials: Provide basic amenities such as towels, toiletries, kitchenware, and cleaning supplies.
- Ensure Safety: Install smoke detectors, carbon monoxide detectors, and provide a fire extinguisher. Ensure all locks and windows work properly.
- Wi-Fi and Entertainment: High-speed internet is essential. Consider adding a smart TV or other entertainment options to make your guests’ stay enjoyable.
First impressions matter:
- Use Good Lighting: Take photos during the day when natural light is abundant.
- Highlight Key Features: Showcase unique features like a beautiful patio, modern kitchen, or a cozy bedroom.
- Consider Hiring a Professional Photographer: If budget allows, a pro can make your ADU look even more appealing.
Now that your ADU is ready, it’s time to list it:
- Choose a Platform: Popular options include Airbnb and VRBO. You can list on both to maximize your exposure.
- Create a Catchy Title: Think of a title that highlights the best feature of your ADU, like “Cozy Garden Retreat in the Heart of Santa Cruz.”
- Write a Detailed Description: Describe your space accurately. Include details about the neighborhood, nearby attractions, and what makes your ADU special.
- Set Your Pricing: Research similar listings in your area to set a competitive price. Don’t forget to factor in cleaning fees and any additional guest fees.
Clear rules make for smoother stays:
- Establish Check-In and Check-Out Times: Standard times are 3:00 PM for check-in and 11:00 AM for check-out, but you can adjust to what works best for you.
- Outline Noise Restrictions: If you have neighbors close by, consider setting quiet hours.
- Pet Policy: Decide whether you’ll allow pets and under what conditions.
- Smoking Policy: Be clear if smoking is not allowed inside your ADU.
Good communication is key to great reviews:
- Respond Quickly: Promptly reply to booking inquiries and messages from guests.
- Use Automated Tools: Platforms like Airbnb offer tools to send automated check-in instructions and reminders.
- Be a Helpful Host: Provide recommendations for local restaurants, attractions, and transportation options.
A clean space leads to happy guests:
- Hire a Cleaning Service: If managing cleaning yourself is too much, consider hiring a professional service to clean between guests.
- Regular Maintenance: Keep up with regular maintenance tasks like checking the plumbing, replacing light bulbs, and tending to the garden if you have one.
Positive reviews will attract more guests:
- Ask for Reviews: After each stay, politely ask your guests to leave a review.
- Learn from Feedback: If a guest points out an issue, address it promptly to avoid future complaints.
- Update Your Listing: Keep your listing fresh by updating photos, changing the description, or adjusting prices based on seasonal demand.
Keep track of your earnings and obligations:
- Track Your Income: Use a spreadsheet or financial software to track your rental income.
- Set Aside Money for Taxes: Short-term rental income is taxable, so be sure to set aside money to cover your tax obligations.
- Consider Professional Help: If you’re unsure about tax filings, consult with an accountant familiar with short-term rental income.
Take the next step in your ADU rental journey
Ikkonic simplifies the process with prefab, turn-key ADUs that are both stylish and efficient. Designed with precision and crafted using high-quality materials, our ADUs offer unmatched value.
When you choose Ikkonic, you're partnering with a team dedicated to making your experience seamless. Start by submitting your property details and discover if Ikkonic is the right fit for you—getting started is free and comes with no obligations.
Benefits
Build smart,
build modular
01
Reliable Timeline & Transparent Costs
Enjoy peace of mind with a clear and consistent schedule, and no hidden fees or unexpected expenses.
02
Premium Materials & Superior Craftsmanship
Benefit from high-quality materials and exceptional workmanship, ensuring durability and aesthetic appeal.
03
Comprehensive Process Management
Easily track and manage every step of your project with our user-friendly platform, keeping you informed and in control.
04
Trustworthy & Competent Team
Rely on our experienced and dependable professionals dedicated to delivering top-notch results with integrity and expertise.
Simple, Predictable, and Transparent Construction Process
We provide upfront, fixed pricing.
No change orders ever.
Considerable savings on construction costs.
No architecture or design fees.
50%
Cut overall project time in half with our pre-designed models.
Configure
Step 01
Customize your ikkonic Home or ADU with our easy to use configurator. Choose your model, finish package, and add on options. A custom design with no stress.
Review & Approve
Step 02
Meet with your project expert to ensure you're happy with the design. Confirm feasibility & sitework requirements and approve your proposal.
1 Hour
Pay $250 Reservation Fee
Site Analysis
Step 03
We’ll perform a feasibility analysis of your property. Ensuring our models can be installed at your site and the site work estimate is accurate before final contract.
2-3 weeks
Contract & Schedule
Step 04
Choose a production slot from our schedule. We’ll advise on how long obtaining local permits should take, so you choose the best available option. Sign your contract and pay your deposit.
1 Day
Pay 50% Deposit
Obtain Local Permits
Step 05
We take care of all the necessary permits for the project. Our experienced team of experts keeps you updated every step of the way.
3-6 Months
Production
Step 06
We manufacture on schedule, regardless of permit or local delays that may occur, eliminating the risk of your ikkonic model not being ready when you are!
Schedule
Milestone
2-3 Weeks
Framing
1-2 Weeks
Mechanicals
1-2 Weeks
Fit & Finish
Pay balance upon completion
Delivery & Install
Step 07
Your beautiful ikkonic home is delivered and installed as soon as the local site work is completed.
1-5 Days
Relax and Enjoy
We’ve Got You Covered
Turnkey Services
ikkonic makes building and installing our premium ADUs effortless with a wide range of pre-approved plans to choose from.
Timeless Design
Our models feature mid century charm and elegance, with custom curated interiors and premium energy efficient building materials that are best in class.
Quality Guaranteed
Each model goes through a 140 point quality control checklist to ensure every build is perfect. Backed by an industry leading 10 yr warranty to protect your investment.
Value Add
Our ADUs add 20-30% to your home's value. An investment that will pay dividends for many years to come.
Use our Online Configurator to Create a Design You Love
No design skills necessary, build and price your model in minutes.
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Frequently asked questions
Accessory Dwelling Units (ADU’s)
Financing your ADU is much more like financing an addition to your home. Keep in mind, this is an add on structure that can not be leveraged individually. From the lender's perspective, you have or will be adding value to your real estate, and the loan ratios now need to be recalculated to make sure the lender is comfortable with the amount of debt versus the new value after the ADU is complete and installed.
We have great relationships with lenders that will assist in the loan process. They offer products like:
- Home Equity Lines of Credit
- Remodel/Addition Loans
- Personal Loans (Unsecured)
- Revolving Credit Loans (Credit Cards)
- Equity Partnership Loans
- State and Federal Grants
