The purpose of this chapter is to establish regulations governing the short-term rental of residential property within the city of Sunnyvale. The establishment of these regulations will help maintain adequate housing stock for permanent residents while ensuring that short-term rental activities do not become a nuisance or threaten the public health, safety, or welfare due to excessive noise, disorderly conduct, overcrowding, traffic congestion, illegal parking, the accumulation of refuse, and other effects related to short-term rentals.
(Ord. 3059-15 § 1; Ord. 3192-22 § 1)
For purposes of this chapter, the following definitions apply:
"Host"
means the person who is responsible for conducting the short-term rental activity and who is identified as the host in the application for approval submitted pursuant to this chapter.
"Hosted short-term rental"
means to provide transient lodging in a dwelling unit, for compensation, for a period of thirty consecutive calendar days or less, while the host resides on site throughout the lodger's stay. "Hosted short-term rentals" do not include transient lodging in city-approved hotels and motels.
"Hosting platform"
means a marketplace in whatever form or format which facilitates short term rentals through advertising, match-making or any other means, using any medium of facilitation, and from which the operator of the hosting platform derives revenues, including booking fees or advertising revenues, from providing or maintaining the marketplace.
"Short-term rental"
means to provide transient lodging in a dwelling unit, for compensation, for a period of thirty consecutive calendar days or less. "Short-term rental" does not include transient lodging in city-approved hotels and motels.
(Ord. 3059-15 § 1; Ord. 3192-22 § 1)
The short-term rental of residential property is a prohibited use in every zoning district in the city, with the exception of approved hosted rentals permitted pursuant to this chapter.
(Ord. 3059-15 § 1; Ord. 3192-22 § 1)
(a) 
Hosted short-term rentals are allowed in any zoning district where residential uses are permitted subject to the following requirements:
(1) 
The short-term rental activity must be approved by the director pursuant to Section 19.76.050.
(2) 
A maximum of four overnight lodgers are allowed per night in any single-family dwelling or any single dwelling unit in a multi-family dwelling. The limit of four overnight lodgers does not include minor children who are accompanied by an adult.
(3) 
Rental to unaccompanied minors under the age of eighteen is prohibited.
(4) 
The host shall reside on site throughout the lodgers' stay. To reside on site means that the property being used for short-term rentals is the host's primary residence and the host uses the property for purposes of eating, sleeping, and other activities of daily living during the time periods that lodgers are present. Lodgers may stay in an accessory dwelling unit if the host resides in the primary dwelling. Lodgers may also stay in one dwelling unit of a two-family dwelling if the host resides in the other dwelling unit.
(5) 
Accessory dwelling units approved on or after January 1, 2020 shall not be used for short-term rentals. An accessory dwelling unit that was approved prior to January 1, 2020 may be used as a short term rental if the host resides on the lot that contains the accessory dwelling unit. Any dwelling unit built pursuant to Chapter 19.78 shall not be used for short-term rentals.
(6) 
The host shall comply with all permit conditions and applicable local, state, and federal laws, including, but not limited to, health, safety, fire, and building codes.
(7) 
The host must provide all lodgers with facilities for sleeping, bathing, and toileting inside of a permanent dwelling that is suitable for human occupancy. Rental of sleeping space in or on balconies, porches, tents, sheds, vehicles or outdoor areas is prohibited.
(8) 
The host shall obtain a business license, if required by Chapter 5.04 of this code.
(9) 
The host shall collect and remit transient occupancy tax, in coordination with any hosting platform if utilized, pursuant to Chapter 3.16 of this code.
(10) 
The host is responsible for ensuring the property does not become a nuisance due to the short-term rental activity.
(11) 
The host shall not advertise or cause to be advertised any short-term rental that does not comply with all provisions of this chapter.
(12) 
The host shall provide its individual approval number issued pursuant to Section 19.76.050 on any and all advertisements of short-term rentals.
(Ord. 3059-15 § 1; Ord. 3154-20 § 8; Ord. 3192-22 § 1)
(a) 
No person shall undertake, maintain, authorize, aid, facilitate or advertise any hosted or short-term rental activity that does not comply with the provisions of this code.
(b) 
The application for approval of short-term rental shall include the following:
(1) 
Name, address and contact information of the host.
(2) 
Name, address and contact information of the owner of the property where the short-term rental activity will occur. In the event that the applicant is not the legal owner of the property, the application shall be signed by the property owner consenting to the use of the property for short-term rentals.
(3) 
If the property is part of a common interest development, the application shall include a letter of authorization from the homeowner's association indicating that use of the property for short-term rentals meets the property's requirements.
(4) 
Any additional information or supporting materials to describe existing property conditions and the proposed operations as required by the director.
(c) 
The director shall not approve the short-term rental application unless he or she finds that the use will comply with the requirements of this code and other applicable law. The decision of the director shall be final.
(Ord. 3059-15 § 1; Ord. 3192-22 § 1)
(a) 
Hosting platforms shall provide the following information to any user listing a short-term rental located within the city through the hosting platform's service:
(1) 
Information regarding transient occupancy tax obligations;
(2) 
All requirements of this chapter regulating short term rentals.
(b) 
Hosting Platforms shall take immediate action to notify the host upon notification by the city of a violation of this chapter.
(c) 
Hosting platforms shall take immediate action to deactivate an advertisement upon notification by the city of a revocation of approval pursuant to Section 19.76.070.
(d) 
Hosting platforms shall keep and maintain records of all short-term rentals and transactions taking place in the city for no less than five years which shall be promptly made available to the city pursuant to a lawful request.
(Ord. 3059-15 § 1; Ord. 3192-22 § 1)
The approval of short-term rental may be revoked or modified by the director as follows:
(a) 
Notice and Hearing. Notice shall be mailed to the host at the address specified in the approval application. The notice shall specify the reasons for the revocation and shall designate a time and place of an administrative hearing with the director of community development no sooner than the sixth business day following the mailing date of the notice. The host shall be given the opportunity to present written and oral evidence at the hearing. Failure to appear at the hearing shall constitute a waiver of any objections to the proposed revocation.
(b) 
Revocation. Following the hearing, the director may revoke the approval if the director makes one or more of the following findings:
(1) 
The approval was obtained by fraud;
(2) 
The short-term rental activity has been or is being conducted in violation of any provision of this code or other applicable law;
(3) 
The conditions of approval have been or are being violated;
(4) 
The short-term rental activity constitutes a public nuisance.
(c) 
Notice of decision. A written notice of the director's decision shall be prepared and mailed to the host at the address specified in the application for approval. If the approval is revoked, the notice shall contain a statement directing the host to immediately cease using the property for short-term rental, and that failure to cease such use may be subject to further legal action or enforcement.
(d) 
Appeal. The decision of the director is final. The decision may be appealed to the Superior Court.
(e) 
A short-term rental in operation without approval is not subject to this section.
(Ord. 3059-15 § 1; Ord. 3192-22 § 1)
The city council may establish and set by resolution all fees and charges as may be necessary to effectuate the purpose of this chapter.
(Ord. 3192-22 § 1; Ord. 3059-15 § 1)
Any short-term rental operated, conducted, or maintained contrary to the provisions of this chapter shall be, and the same is hereby declared to be, unlawful and a public nuisance which the city attorney may seek to abate, remove, and enjoin in any manner provided by law. Such remedies shall be in addition to any other remedies available to the city under this code or under state law.
(Ord. 3192-22 § 1; Ord. 3059-15 § 1)