Thinking about turning your Carlsbad home into a short-term rental? The rules here are unique, and a simple mistake can lead to fines or a revoked permit. You want clear answers on where STRs are allowed, what permits you need, and how to handle taxes the right way. This guide breaks it down so you can operate confidently and protect your investment. Let’s dive in.
Where STRs are allowed
Carlsbad limits short-term vacation rentals to the city’s Coastal Zone and two La Costa Resort buildings (Balboa and Cortez). Properties outside those areas are not eligible for STR permits under city code. You can review the City’s STR ordinance for the official rules and definitions in Chapter 5.60 of the municipal code. See the code language for STR locations and rules.
The Coastal Zone boundary is irregular and can change by parcel. To confirm if a specific address is inside the Coastal Zone, use the City’s Planning resources for the Local Coastal Program or contact Planning directly. Check the City’s Local Coastal Program page for maps and updates. Local reporting has also highlighted how the line does not follow ZIP codes, so parcel-level verification is essential. Read background coverage on the rule change and mapping context.
Permits and renewal
You must obtain a City short-term vacation rental permit and a City business license before you advertise or accept bookings. Permits are valid for one calendar year and must be renewed annually. The STR application requires owner or agent details, the number of bedrooms, listing URLs, and a signed acknowledgment of the City’s Good Neighbor materials. Review permit requirements in Chapter 5.60.
Your application must name a local 24/7 contact who can respond to complaints within 45 minutes. You also need an Impact Response Plan and must deliver it to adjacent or across-street neighbors. Once issued, your permit number must be posted at the property and displayed on all online listings and advertising. See the advertising and local contact rules.
Operating rules to follow
Guest occupancy is limited to two people per bedroom plus one additional person for the unit. The code defines what counts as a bedroom, so be precise when you apply and advertise. You must provide guests with the City’s Good Neighbor brochure, collect renter contact information, and retain records for three years. Review operational standards and definitions.
Amplified outdoor sound audible at the property line is not allowed from 10 p.m. to 10 a.m. Commercial activities and special events, such as large parties or weddings, are prohibited. Guests should use on-site parking as available, and trash rules must be followed. The City Manager can add permit conditions to address unique impacts. Read the noise, parking, and event restrictions.
Taxes and assessments
Carlsbad’s Transient Occupancy Tax is 10 percent of the rent for stays under 30 days. You are responsible for collecting and remitting this tax to the City. See the transient occupancy tax code.
In addition, the Carlsbad Tourism Business Improvement District assessment is 2 percent of gross short-term room revenue, effective November 1, 2020, and is collected monthly. Review the CTBID assessment change. Some platforms may collect taxes for you, but the municipal code puts ultimate responsibility on the operator, and a broker that collects revenue can be primarily responsible for remittance. Confirm what your platform collects and file any remaining amounts directly. Visit the City’s Finance page for tax remittance guidance.
As of May 2025, local reporting noted nine months of TOT revenue totaling $26.6 million and 449 registered short-term rentals, underscoring the City’s focus on hospitality compliance. See the May 2025 report on tourism and TOT.
Penalties and enforcement
Operating without a permit, advertising an unregistered unit, or violating operating rules can lead to citations, fines, and even misdemeanor charges. The City may suspend or revoke permits, and three or more verified violations within 24 months trigger revocation with a 36-month reapplication bar for that property. The City can also bill for multiple police responses to parties. Review the enforcement and penalty provisions.
Local reporting in 2023 found that unpermitted STRs were the leading cause of complaints in North County coastal cities, and in Carlsbad a large share of violations involved illegal operations. This is a clear signal to make compliance your first step. Read the 2023 enforcement trends report.
Step-by-step compliance checklist
- Confirm your property is inside the Coastal Zone or in the eligible La Costa Resort buildings. Use the City’s LCP resources.
- Apply for a City STR permit and a City business license before listing. Renew annually. See Chapter 5.60.
- Prepare an Impact Response Plan and deliver it to required neighbors. Keep a copy onsite. See Chapter 5.60.
- Designate a 24/7 local contact who can respond within 45 minutes. Post permit and contact info at the property. See Chapter 5.60.
- Follow occupancy, noise, parking, and trash requirements. Provide the Good Neighbor brochure and keep guest records for three years. See Chapter 5.60.
- Register for taxes and file monthly returns. Collect and remit 10% TOT and the 2% CTBID assessment. Confirm whether your platform collects any amounts on your behalf. See TOT code and City Finance.
- Include your permit number on every listing and ad. Ensure any broker or platform is listing a registered STR. See Chapter 5.60.
Buying or selling with STR plans
If you plan to buy in Carlsbad for short-term rental use, verify Coastal Zone eligibility and review HOA rules and CC&Rs that may restrict rentals. Accessory dwelling units permitted on or after January 1, 2020 are treated differently under the STR code, so confirm how any ADU or junior ADU on the property is classified. Check the STR ordinance for definitions and exclusions.
If you are selling a property with an STR permit, gather your permit records, neighbor notifications, and recent tax filings. Clear documentation helps buyers understand ongoing obligations and can support pricing and due diligence. A well-documented STR history can reduce surprises in escrow and keep timelines on track.
Ready to align your Carlsbad real estate goals with the city’s STR rules? For tailored guidance on property selection, due diligence, and a seamless sale or purchase, connect with Chris Martin.
FAQs
Where are STRs allowed in Carlsbad?
- Only inside the Coastal Zone and in the La Costa Resort’s Balboa and Cortez buildings; outside these areas STRs are not permitted under city code.
Do I need a permit before listing my home?
- Yes. You need a City STR permit and a City business license before advertising or renting, and you must renew the STR permit annually.
What are the guest occupancy limits?
- The code limits occupancy to two people per bedroom plus one additional person for the unit, based on the ordinance’s bedroom definition.
What are the quiet hours and event rules?
- Amplified outdoor sound audible at the property line is prohibited from 10 p.m. to 10 a.m., and commercial events like large parties or weddings are not allowed.
How much are TOT and CTBID, and who remits them?
- TOT is 10% of rent for stays under 30 days, and the CTBID assessment is 2% of gross short-term room revenue; operators are responsible for ensuring both are collected and remitted.
How do I confirm my address is in the Coastal Zone?
- Check parcel-level eligibility using the City’s Local Coastal Program resources or contact the Planning Division for assistance.
