Santa Cruz County · checked 2026-09-13
Can you BnB it in Capitola?
RestrictedCapitola allows vacation rentals only inside the small -VRU overlay zone around Capitola Village, with an administrative permit, business registration, and TOT reporting for each unit. Outside the overlay, rentals must be 30 nights or more, and permit holders have no vested right to renewal.
The rules, with their sources
Permit or licenseA permit or license is required before operating.L117.40.030 · code text · checked 2026-09-13
Caps and limitsNo numeric cap in Chapter 17.40; the geographic restriction to the -VRU overlay (Capitola Village and nearby blocks bounded by Cliff Drive, Monterey Avenue, Riverview Avenue, and Capitola Beach per the city page) is the effective capL1CMC 17.40.030 (Ord. 1043 sec. 2 (Att. 2), 2020; Ord. 1066 sec. 2 (Att. 1), 2024) · code text · checked 2026-09-13
Transfer when the home sellsCode silent on transfer at sale in the code text we read. The permit is an administrative permit per unit, and 17.40.030 states no permit holder shall have a vested right to a renewed permit, which implies renewal is discretionary and a new owner should not assume the permit carries over; the city page does not address transferability.L117.40.030 · code text · checked 2026-09-13
Read the code text →
In the city's own words
17.40.030“Vacation rentals in Capitola are prohibited outside of the -VRU overlay zone.” source
17.40.030“Each vacation rental unit is required to obtain a vacation rental permit, as an administrative permit, in addition to registering each unit with the city as a business.” source
17.40.030“No permit holder shall have a vested right to a renewed permit. If there is a history of the permit holder or tenants violating the permit's conditions, the permit may be revoked consistent with Section 17.156.110.” source
Citation: CMC 17.40.030 (Ord. 1043 sec. 2 (Att. 2), 2020; Ord. 1066 sec. 2 (Att. 1), 2024)
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How this page was verified
Verified from the municipal code (level 1), checked on 2026-09-13 by the CanIBnB research desk. Research is AI assisted and human reviewed; the method, the level system, and the re-check schedule are on the How we verify page. If anything here is wrong, report it and it goes in the public corrections log.