Short-Term Home Sharing Rental Permit Program

El Segundo commenced a program allowing property owners to apply for a Home Share Rental Permit. This is a limited program that allows only property owners to obtain a permit (valid for a calendar year) to conduct short term home sharing within their primary residence.

Please be advised that this program is only for home sharing. Home sharing is defined as the “Renting, for a period of 30 consecutive days or less, of one or more bedrooms in a dwelling unit that is the primary residence of the host, while the host lives on site, in the dwelling unit, throughout the transient user’s stay.”

Some key provisions of the program include the following:

Permit registration fee is $345.00 (renewal fee is $188.00). The host will also need to obtain a city business license fee for $154.00
For a property to qualify, the property owner must live on the dwelling unit183 days/year, be insured for liability, collect the bed tax and ensure the tax is submitted to El Segundo
Occupancy is limited to two adults per bedroom in a dwelling unit, not including children under 13
Hosts must carry a minimum of $1 million in liability insurance
City staff from police and code enforcement will respond to noise complaints about loud parties or large gatherings
Host must collect Transient Occupancy Tax (TOT) and ensure the tax is submitted to El Segundo
The program has a two-strike policy. First violation is a $2, 500 fine; second is a $5,000 fine and the short term home share permit will be revoked

Administrative Guidelines

These Administrative Guidelines are for the purpose of implementing El Segundo’s Short-Term Home Sharing Rental (STHSR) Permit Program, as established by Ordinance No. 1614. These Guidelines reflect the City’s application of the Ordinance and provide detail on how property owners (hosts) and hosting platforms can comply with the requirements of the Ordinance during the term of the program.

To view the full Administrative Guidelines PDF please click HERE.

Registration and Permits

Eligibility Requirements

Single family homes that are owner occupied and are the primary residence of the owner are eligible for home sharing. Two–family and multi-family properties are also eligible locations for short-term home sharing in El Segundo, but the unit must be the property owner's primary residence.

The Director of Development Services has discretion to allow structures that are not attached to a single family residential structure and contain no kitchen facilities, but have building permits and comply with the Building Code for being a habitable structure, to be eligible for STHSR permits. The property owner must allow the renter access to all common areas in the home, including a bathroom and the kitchen.

Permitting Process

The permit registration fee is $345.00 (renewal fee is $188.00). A prospective host must obtain from the City both a business license and a STHSR permit, which are applied for together. Applications will be received at any time after the program implementation date, but all permits will expire at the end of the calendar year regardless of when the application is made.

To apply for a STHSR permit, an applicant can find all the necessary forms on this page, or at City Hall. Online applications may be completed and printed, all applications must be submitted in person to the Business License counter at City Hall, located at 350 Main Street, Monday - Friday 7:00 a.m. - 4:00 p.m. Additional documents to establish proof of ownership and residency are required and explained in the guidelines.

Establishing Ownership and Primary Residency

Two important initial steps in the application process are establishing property ownership and permanent residency. The STHSR Permit Program Ordinance requires that home sharing be conducted only on a property owner’s primary residence. Renters are not eligible for this program.

If the property ownership is held in a family trust, than at least one of the trustees must reside at the property as their principal residence and be the applicant to be eligible. Any property held by a Partnership, LLC, or other entity may be eligible if one of the owners or members resides at the property as their primary residence.
STHSR Permits are not transferrable to new owners nor to other properties. In the event of a sale, or if the property ceases to be the primary residence, the permit becomes void.
As part of the application process, a prospective host should show a copy of at least one document that identifies the full name or names of the applicant as owner and the address or tax assessor identification number of the property. Below are examples of documents that are acceptable proof of property ownership:

Recent property tax bill
Recent mortgage statement
Title report

To establish primary residency an applicant must associate their property as the place which is the base of their personal life activities. This is accomplished by showing two of the following when making the application:

Valid federal of state-issued photo identification card with name and address that match name and address on application
Passport or Alien Registration Card with name and address that match name and address on application
Valid California voter’s registration card or a voter registration status document showing name and home address (may be obtained online at voterstatus.sos.ca.gov
Valid California vehicle registration certificate showing name and home address
Health insurance or vehicle insurance bill issued in the last six months showing name and home address
Pay stub issued in the last six months showing name and home address
Original utility bill issued from City of El Segundo Water Division, Southern California Gas, or Southern California Edison. Cable, cell phone, or internet provider bills do not qualify.
Copy of a current property tax bill indicating homeowner’s exemption

Other Information Gathered

After establishing property ownership and primary residency, the application process focuses on ensuring that applicants are aware of the responsibilities of hosts in the program and what activities are not allowed.

The first of these is an affidavit sheet, an example of which can be found in the appendix right after the STHSR Permit. On the Sheet the applicant is asked to sign an affidavit stating the following:

The applicant is the owner of the property and will reside in the unit to be used for Home-Sharing for at least 183 nights per calendar year

Insurance Requirement

Hosts must also include proof of liability insurance to cover home-sharing with minimum limits of not less than $1,000,000. This requirement may be satisfied if the Host lists only on Hosting Platforms that provide the Host with this level of insurance. In such a case, the Host must provide the City with a copy of the agreement between the Host and the Hosting Platform that evidences the requisite insurance coverage.

Business License

In addition to the STHSR permit application and affidavits mentioned above, as well as the various supporting documents to establish property ownership, primary residency, and insurance coverage, a business tax registration application (business license) is required. The application is available HERE it must be downloaded, filled-out & submitted in person with the other application forms and documents.

The business license fee is $154.00

Transient Occupancy Tax (TOT) Registration

Unless the applicant has the hosting platform they use collect and remit all TOT on their behalf, the applicant must be registered to pay TOT with the City’s Business License Division. Regardless of whether a host utilizes a hosting platform that offers to collect and remit TOT on their behalf, the host is ultimately responsible for the, collection and monthly remittance of TOT to the City.

Please note that this registration must be done within one week after receiving your STHS permit and business license.

After you receive your permit and license approval, you will be able to register for TOT at the following link: https://elsegundo.hdlgov.com/

Short Term Home Share Rental Permit Application

In addition to the Business Tax Registration, as well as the various supporting documents to establish property ownership, primary residency, and insurance coverage, a Short Term Home Share Rental Permit is required. The application is available HERE but during the program must be downloaded, filled-out & submitted in person with the other application forms and documents.

The STHSR Application fee is $345.00 (renewal fee is $188.00).

Host Responsibilities

The host is personally responsible for complying with the rules, and requirements contained in these guidelines.

Operations

As part of the application process, all applicants must acknowledge these operational guidelines. Once permitted, it is the responsibility of the host to ensure these measures are taken or are maintained in order to remain in good standing with the program.

Only habitable space designated for sleeping may be used for home sharing.
A home sharing unit is for overnight lodging accommodations only and may not be used for, or advertised for use for weddings, parties, bachelor or bachelorette parties, conferences, or similar events.
An accessory dwelling unit may not be used for short-term rental.
The home sharing unit must at all times provide operable basic health and safety features, including fire extinguishers, smoke detectors, and carbon monoxide detectors.
The property of the home sharing unit shall be maintained in a clean and sanitary condition. Trash and refuse shall not be left outdoors and shall not be left stored within public view, except in proper containers for the purpose of collection by the trash collectors.
At no time during a home sharing stay may the total number of rental guests and invitees of such guests on the subject parcel exceed six, excluding children.
The total occupancy of each home sharing unit may not exceed two adult guests for each bedroom available for home sharing. The applicable maximum occupancy must be included in every advertisement, posting, and listing for a home sharing unit.
The home sharing permit number must be included in every listing for a home sharing unit.
Parking must be provided at a ratio of not less than one space per bedroom in the residence and must be available for use by the rental guest. Parking spaces may include garage or driveway spaces. Tandem parking spaces are acceptable provided each space measures at least 9 by 20 feet and does not extend into the sidewalk or alley.
No signs or displays advertising a home sharing unit are allowed on the property.
The owner must maintain a transient occupancy registration certificate and must ensure the timely remittance of all transient occupancy taxes due in accordance with Title 3, Chapter 4 of the ESMC.
The short-term rental of any space for the purpose of storing personal property for compensation is prohibited in all residential zones.

Program Termination

All STHSR permits issued are valid for the calendar year, provided the permit is not revoked. All permits expire on December 31, regardless of when a permit is issued, and do not automatically renew.

If a host no longer resides in the residence used for home sharing or is no longer the property owner, the host must inform the City’s Licensing Division at taxinquiries@elsegundo.org within 15 days from the date when the unit was sold or no longer the owner’s Primary Residence.