Can I operate a short-term rental in my house?

Hosted short-term rentals are permitted within all residential zones in Nevada City, provided the operation adheres to the specific standards and registration requirements for "Hosted Short-term Rentals" [Section 17.72.080, p. 94]. A hosted short-term rental is defined as the rental of all or a portion of a unit for a period of less than thirty (30) days [Section 17.72.080 A.4, p. 93].

To legally operate, you must comply with the following operational and development standards:

• Annual Registration: The owner must register the property annually with the City. The issuance of this registration is processed ministerially upon filing a complete application [Section 17.72.080 1, p. 94].
• Residency Requirement: The owner or a designated manager must reside at the property or within Nevada County to ensure a timely response to any police or code enforcement actions [Section 17.72.080 3, p. 94].
• Unit Limitations: No more than two (2) units within a single property may be rented or offered for rent at the same time [Section 17.72.080 2, p. 94]. Furthermore, the property cannot be used solely for short-term rentals; it must maintain its primary residential character [Section 17.72.080 7, p. 94].
• Parking and Traffic: Only one (1) vehicle is allowed per rental unit during the stay [Section 17.72.080 5, p. 94].
• Taxes and Fees: Operators must comply with Chapter 3.24 regarding the payment of transient occupancy tax (TOT) [Section 17.72.080 6, p. 94].
• Prohibited Activities: Commercial meetings, including weddings, parties, or fundraisers for direct or indirect compensation, are strictly prohibited and constitute a public nuisance [Section 17.72.080 8, p. 94].
• Neighborhood Relations: Prior to the initial rental, the owner or manager must distribute a courtesy notice to the neighborhood regarding their intent to provide short-term rentals and how guests will access the residence [Section 17.72.080 9, p. 94]. Conduct guidelines must also be presented to all renters [Section 17.72.080 10, p. 94].

Restrictions on Accessory Dwelling Units (ADUs): Significant restrictions apply if the short-term rental is located within an Accessory Dwelling Unit or Junior Accessory Dwelling Unit:

• General Prohibition: ADUs approved under specific ministerial provisions (Section 17.72.027) are explicitly prohibited from being rented for terms of less than thirty (30) days [Section 17.72.027 B, p. 88].
• JADU Restriction: Junior Accessory Dwelling Units (JADUs) are also prohibited from being used as short-term rentals and must be rented for periods of 30 days or longer [Section 17.72.029 E, p. 89].
• Size-Based Prohibitions: Detached ADUs in excess of 800 square feet and attached ADUs in excess of 640 square feet are not permitted to operate as hosted short-term rentals [Section 17.72.026 N, p. 86-87].

Bed and Breakfast Facilities: If the facility is intended to operate as a bed and breakfast with a resident owner/manager, it requires approval as a conditional use [Section 17.12.120, p. 6].

Sections Cited

• 17.12.120 - Dwelling unit (p. 6)
• 17.12.195 - Lodging unit (p. 9)
• 17.72.026 - Accessory dwelling units—Development standards (p. 86-87)
• 17.72.027 - Accessory dwelling units—Permitted regardless of compliance with other development standards and regulations (p. 88)
• 17.72.029 - Junior Accessory Dwelling Units (p. 89)
• 17.72.080 - Hosted short-term rentals (p. 93-94)